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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.

Volkswagen Golf Wagon caught completely uncovered

Without a lot of information to go with them, our camera-toting spies have captured some new images of a Volkswagen Golf wagon variant that is almost completely undisguised. In fact, the one piece of camouflage on the tidy wagon would probably have gone unnoticed to most casual viewers. Look closely at the rear three-quarter view of the car and you'll notice that the apparent taillight clusters are actually fakes - the outline of the real units is faintly visible behind the blue bodywork and the sticker-like fake taillights.
It's a good guess then, that this Golf wagon (called a Golf Kombi by our spy photographer) is a prototype that's pretty far along in the development cycle for Volkswagen. We can't be sure what impact this will have on the company's small wagon offering here in the US, but we'd be pretty surprised if something very like this didn't end up as the next Jetta SportWagen. We might well have more information on that front, after we visit Geneva next week.

Golf tees up new sales for VW

If you consider the Passat and the CC two different lines, Volkswagen USA lists nine different models on its website, and they have sold a total of 238,074 units in the US this year through the end of August. The Golf, which was voted North American car of the year in 2015, and its variants account for 44,416 sales, an increase of nearly 150 percent compared to the same period last year. That's also the most Golfs ever sold in that time in the US, and almost 19 percent of this year's entire brand sales. This is compared to a compact car segment that has gained just 1.1 percent compared to 2014. A number of factors are responsible, according to a report in Automotive News: the MQB platform allows different powertrains to roll down the same assembly line; VW USA product planners can now configure vehicles to suit our market and they work with a selection of dealers to refine the retail offering; and the Golf maintains its proper European driving experience. The expanse of the Golf range has meant not only increased profits and new buyers, but more breadth in the buying demographic - expanding outward from the standard Golf to five different extremes, from the e-Golf to the Golf R. Room will be made for a new kind of consumer next year when the current Sportwagen model goes all-wheel drive with an Alltrack designation. Unsurprisingly, VW USA says, "Golf is a role model for the US for us. We want to learn from our success and implement those lessons in our future model planning." After decades of uneven effort, perhaps that formula plus a long-awaited range of crossovers can finally deliver on the promise of the US market. Related Video: