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VW CEO lost his job over buggy software that delayed new models

It says a lot about the state of the auto industry and where it's going that software problems have cost the CEO of a carmaker his job. Volkswagen ousted Herbert Diess as chief executive officer after severe software-development delays set back the scheduled launch of new Porsches, Audis and Bentleys. This was untenable considering buggy software postponed the debut of VW’s initial rollout of ID models, and customers are still having to drop off their cars at the dealer for updates the company has struggled to make over the air. Sure, Diess also didnÂ’t do enough to make allies and became increasingly isolated due to his hard-nosed leadership style. In his push to transform the company into an electric-vehicle leader, he repeatedly clashed with labor leaders by warning VW was losing out to Tesla and needed to cut thousands of jobs. But failures at the carmakerÂ’s software unit Cariad ultimately eroded DiessÂ’s support from the powerful Porsche and Piech family that calls the shots. Back in December, VW overhauled its management board, stripping Diess of some responsibilities while tasking him to turn around Cariad. While thereÂ’s been a lot of re-arranging since then, Diess didnÂ’t manage to make the issues go away. Discord at Cariad has pushed back the rollout of important new models including the electric Porsche Macan, a high-volume sport utility vehicle for the division thatÂ’s planning an initial public offering in the fourth quarter. AudiÂ’s new line of Artemis EVs has been delayed by around two years to 2027. And VWÂ’s ultra-luxury brand Bentley may not be able to go all-electric by the end of this decade as planned because of the software issues, Automobilwoche reported earlier this month. “Taking over the ship at Cariad seems to have been DiessÂ’s downfall,” said Matthias Schmidt, an independent auto analyst based in Berlin. VWÂ’s solutions to challenges tend to reflect its status as an industrial behemoth: itÂ’s able to throw lots of money and people at its problems. But modernizing the company for the digital age is going to take bringing in talent and building skillsets outside its traditional zones of expertise. Drivers increasingly demand intuitive user interfaces and services that could create new revenue streams, if done correctly. “Software is the key to the future,” TeslaÂ’s Elon Musk tweeted when one of his followers asked about VW switching CEOs. Diess certainly didnÂ’t lack ambition.

Audi TT Sportback Concept rounds out an icon

That German automakers seem singularly fixated on filling any white space between their models isn't new - the last decade-plus has seen their showrooms overflowing with niche models, some of which seemingly occupy sub-genres of sub-genres. To our eyes, there's often diminishing aesthetic and utilitarian returns to go along with the heightened price tags that accompany these models, but we're beginning to think Audi is tackling its personal diversity initiative best. Unlike the often heavy-handed designs from rivals (we're looking at you, BMW), Ingolstadt seems to be doing doing a more graceful job of carving out models between models. The latest proof of this is the TT Sportback Concept, just unveiled here at the Paris Motor Show.
After showing off its Allroad Shooting Brake Concept in Detroit and, more recently, in the Offroad Concept in Beijing amidst rumors of the TT sports car platform expanding into an entire family, we're not surprised to see this more utilitarian five-door hatchback showcar here in France. This, despite the fact that Audi already counts similarly proportioned A5 Sportback and A7 Sportback models in its lineup.
Of the TT line extension concepts, this Sportback certainly looks the most production ready, with a bare minimum of showcar tinsel masking realistic proportions and detailing. We think it's quite handsome from stem to stern, even if it's a bit familiar looking. The design incorporates Audi's trademark big-grille look with the TT's prominent arched roofline and heavily radiused fenders, along with a rear lighting graphic that subtly echoes the A3. Despite its leggy looks, the TT Sportback Concept is surprisingly compact, spanning less than a foot longer overall than the production 2016 TT despite its 4.7-inch longer wheelbase and extra set of doors. Those sleek looks come at least partially as the result of an overall height that sits 1.2 inches lower than the TT coupe.

BMW expects China to pass US as its top market in 2013

When you combine two billion citizens, 100 cities with more than a million inhabitants and an economy that's as unrestrained as Jim Cramer on an Adderall binge, China's explosive auto industry growth shouldn't be a huge surprise. Audi already lists the communist country as its largest market, while Mercedes-Benz is expecting it to be there in the next few years. Now, according to a report from Automotive News, BMW is expecting the People's Republic to overtake the United States in sales by the end of 2013.
We already discovered the extent that BMW is going to in establishing a dedicated Chinese stronghold, when we explored BMW's Shanghai-based DesignWorks studio ahead of April's Shanghai Motor Show. And while we argued that DesignWorks Shanghai hasn't really borne fruit, it isn't due to a lack of sales.
BMW China has seen a 16-percent jump in year-over-year sales, lead by a 28-percent gain in 5 Series sales. Part of BMW's growth strategy comes from an ever-expanding dealership network. Remember those 100 cities we mentioned with over one million people? According to Karsten Engel, CEO of BMW's Chinese operations, those 100-million-plus city dwellers don't have access to a premium dealership.