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According to a report from Suddeutsche Zeitung things continue to be rough for Volkswagen with the ID.3.

It's apparently reached the point where things seems desperate. VW is apparently looking to solve its software woes for the ID.3 by forming a partnership with Daimler and BMW.

Here's how the article describes the situation at VW.

- But the ID.3 is more than rough. "This is no longer a laugh," says one of the group. "The car is far from ready for the market."

- From the official side, therefore, one tries to downplay the problems with the ID.3. You will keep the schedule, said CEO Diess at the annual press conference last week. But internally it says: "It's an absolute disaster. We just can't get people." In fact, as an employer, VW struggles to get young software experts excited. Programmers are desperately sought in all industries, many of these coveted young people decide against the auto industry. And sometimes important managers are also lost: IT boss Martin Hofmann leaves VW at the end of the month, he was responsible for IT across the Group and thus also plays a key role in the development of e-mobility.


The meeting took place in a very small group. At the highest management level, top secret. Without having informed the supervisory board, the works council or any other body beforehand. The board of directors of Daimler and Volkswagen met to discuss whether the two groups could program an operating system for automobiles together. Because the software is crucial for the cars of the future. And at the moment Tesla, the competition from the USA, is miles away from the Germans. If you teamed up, you could save costs, but above all you could pool competencies: Because software development is tedious, small-scale, takes a lot of time and requires a lot of programmers, and both of these are far too little for German automakers. It would be logical to cooperate. Or?

When it became public last week that Wolfsburg and Stuttgart might want to work together, it caused an earthquake in the industry. First, the bosses, especially at the Daimler headquarters in Stuttgart, could not believe that there was a leak despite the small number of people who had been informed. And, worse, the Mercedes makers are now a little in front of their BMW colleagues . Because the Munich team is also running advances for a common operating system.

Mercedes flirted in parallel with both competitors, which is pretty embarrassing now

It is a constellation like in a soap opera from the afternoon program: Daimler drives on two tracks - making the major German car companies the protagonists of a bizarre triangular story. Who gets the bride

In any case, it seems certain that not all three can come together - this would hardly be enforceable under antitrust law and, moreover, difficult to reconcile with the egos and self-interest, which are significantly pronounced on all sides. Daimler will therefore have to choose between BMW and Volkswagen as a possible partner. And this decision will have the greatest possible strategic consequences for all three. If you end up alone, you could have a massive competitive disadvantage. Nobody comments on the talks.

Volkswagen in particular is in a complicated situation. The company has promised to start delivering the ID.3 this summer. The car is the group's first fully electric model and is intended to bring electromobility to the mass market. The company plans to put 100,000 electric cars on the road by the end of the year. But the ID.3 is more than rough. "This is no longer a laugh," says one of the group. "The car is far from ready for the market."

The introduction of new cars is delayed more often. That in itself would not be unusual. In this case, however, Volkswagen has no leeway: First, because VW boss Herbert Diess has made the ID.3 his prestige object. If this car is successful, he can justify the radical conversion to e-mobility. If the ID.3 fails, Diess' position at the top of VW would also be up for debate. Secondly, because Volkswagen needs the ID.3 on the road to comply with the EU's CO₂ requirements. The company will only be able to avoid fines if VW actually has 100,000 electric cars on the road by the end of the year.

If VW does not get the e-cars on the road, they will miss the climate protection goals. A debacle

From the official side, therefore, one tries to downplay the problems with the ID.3. You will keep the schedule, said CEO Diess at the annual press conference last week. But internally it says: "It's an absolute disaster. We just can't get people." In fact, as an employer, VW struggles to get young software experts excited. Programmers are desperately sought in all industries, many of these coveted young people decide against the auto industry. And sometimes important managers are also lost: IT boss Martin Hofmann leaves VW at the end of the month, he was responsible for IT across the Group and thus also plays a key role in the development of e-mobility.

So, in the face of all these adversities, how should VW implement the CEO's ambitious plans and deliver the ID.3 in the summer? One thing is clear: If VW delivers ID.3 cars at all, it will be in a radically slimmed-down version. The group admits this on request. "It's not going great," says a spokesman. You will delete "one or the other planned function" and then deliver later via an update. A group insider goes even further and says that they are not even close to an industrial manufacturing process at the ID.3. This will definitely have a few cars in the summer that he can show off, "but we will handcraft them so that there is something there. It has nothing to do with mass production."

The trick is also to be tricked with regard to the CO₂ fleet targets: Internally, there should be considerations, for example, to approve Porsche’s Tayfl electric car in large numbers in the EU instead of in the USA in order to improve the CO₂ balance.

In any case, the Taycan is already preferred within the group when it comes to the allocation of battery cells: Because the cells of the South Korean manufacturer LG Chem are currently scarce, the electric Porsche is preferred to the Audi SUV E-Tron.

That will not be enough if it does not work to put the ID.3 on the market in a big way. If Volkswagen had to pay fines for failing to meet its climate protection goals, that would be doubly bitter for the group: Firstly, financially, but worse with regard to its own image. Five years after the diesel fraud became known, VW would again be the air pollution company in the public eye. A debacle.

At any rate, the ID.3 vehicles are currently being pre-produced as empty sheet metal casings and temporarily stored in a huge parking lot in Saxony - with the intention of importing the software when at least one reasonably suitable basic version is ready.

The picture of the tin cans without inner life illustrates quite well what Germany's automakers are most afraid of: if they are not in a hurry to catch up in terms of software, they face the status of pure sheet metal benders in the world of new mobility: they would then deliver the cover while that Operating system comes from large American corporations like Google or Apple. But experts agree: only those who have access to the data of car buyers and drivers in the future will earn really good money. So if the Germans remain without competitive software, they dwindle to simple suppliers. A horror scenario for the proud German car industry.
 

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I'm genuinely shocked how quickly things have turned for VW and the ID.3. It seemed like they were on the path for EV domination and now they can't even get the people necessary to fix the software problems.
 

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I'm genuinely shocked how quickly things have turned for VW and the ID.3. It seemed like they were on the path for EV domination and now they can't even get the people necessary to fix the software problems.
What I'm puzzled by is why the ID.3 has posed such a challenge when the Taycan and e-Tron should have already been a model for EV development within the group.
 

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Discussion Starter #4
What I'm puzzled by is why the ID.3 has posed such a challenge when the Taycan and e-Tron should have already been a model for EV development within the group.
It's really weird, it's as if VW wanted to do something entirely different than the Taycan and e-tron. Or everyone all of a sudden quit on the ID.3 project.
 
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