Volkswagen Group's (OTC:VLKAF) (ETR:VOWG_p) CARIAD division is currently experiencing delays in the development of cutting-edge software. This setback has been officially acknowledged by Porsche in the share prospectus released during its IPO last month. In the prospectus, it was highlighted that the commencement of deliveries for the Macan EV is slated for 2024.
The automaker warned in the prospectus that since the E3 1.2 software platform is still under active development, "a risk remains that the Group will not achieve its existing cycle plan for new vehicles on schedule, in particular BEV models of the 718 and Cayenne."
The delays come as VW plans to cut 2,000 positions at the troubled software unit as part of a restructuring plan.
The VW board approved the plan at a meeting on Wednesday, with an aim for job cuts to take place from 2024 until the end of 2025. However, the plan still requires approval from the works council, which has negotiated job guarantees for workers until mid-2025.
"We don't accept this method of cutting jobs across the board. There is no concrete information on where positions should be cut in terms of structure and tasks," a Volkswagen works council spokesperson said.
Meanwhile, Volkswagen's SSP platform, initially intended as the “single future backbone,” is also facing delays. The platform's implementation was anticipated to bring down expenses, facilitating a margin comparable to that of conventional gas-powered vehicles.