On October 9th, according to foreign media reports, Volkswagen Group officially announced a major strategic adjustment: completely abandoning its in-house software development path and downgrading its software subsidiary CARIAD from a "core developer" to a "partner coordinator."

This decision not only marks a comprehensive shift in Volkswagen's software strategy, but also signifies that former CEO Herbert Diess's "software-defined vehicle" initiative, which he had vigorously promoted, has encountered major setbacks after years of implementation. Volkswagen's strategic pivot stems from CARIAD's persistent serious operational and technical difficulties, with massive losses significantly dragging down the group's overall performance. According to financial data: from 2021 to 2022, CARIAD accumulated losses of nearly 3.4 billion euros; in 2024 alone, the division's operational losses reached 2.4 billion euros. The continued hemorrhaging of the software business directly impacted group profitability, with Volkswagen Group's after-tax profit falling sharply by 30.6% year-over-year in 2024, making CARIAD a recognized "financial burden."

In 2022, Oliver Blume took over as Volkswagen Group CEO and, facing CARIAD's mess, quickly initiated strategic "corrections." He stated publicly: "We neither want nor have the capability to complete all software development entirely on our own - we need reliable partners." This statement formally established the tone for Volkswagen's software strategy shift from "in-house development" to "cooperative integration."

Subsequently, Volkswagen rapidly built a cross-regional cooperation network, with the most well-known being its partnership with Chinese automaker XPeng Inc. The plan involves directly adopting XPeng's driver assistance system and deploying it in new Volkswagen models launched in China by 2026. Under this new strategy, CARIAD's role has been completely transformed: no longer undertaking core software development tasks, but focusing on two main functions: first, maintaining the stable operation of Volkswagen's existing software platforms, and second, serving as a "coordinator" to integrate systems developed by external partners like XPeng and Rivian into various Volkswagen brand vehicles, shifting from "leading role" to "supporting player."