Volkswagen Group’s software division, Cariad, has been facing challenges with its programming for the past five years, resulting in delays for the launch of electric vehicles (EVs) under the Scalable Systems Platform (SSP). Initially planned for a 2024 release, the SSP has been pushed back to a tentative date of 2026 or even 2027. As a result, the VW brand’s next-generation models, including the electric Golf and ID.4, are also facing delays and may not be available until 2029 at the earliest.
This delay is not ideal for the VW Group, but it does provide some advantages. Firstly, it gives the automaker more time to leverage the existing MEB platform, which is due for an upgrade to MEB+ in 2026. This allows Volkswagen to generate more revenue from their current EV lineup before the launch of the SSP-based vehicles. Additionally, the slowdown in EV sales across the industry mitigates the negative impact of the delays on Volkswagen’s sales performance. While the VW brand’s ID.4 sales were down 15% in the first half of this year compared to 2023, overall EV sales grew by 11.3% during the same period.
However, despite these advantages, there are potential drawbacks to the delays. With competitors continuously introducing new EV models, an aging ID.4 may struggle to compete in the market. U.S. dealerships have already seen a decline in ID.4 sales, and without a timely refresh, the SUV may face further challenges.
Moreover, the delays in launching the SSP-based vehicles also have a cascading effect on other VW Group brands. The launch of a large electric SUV, the T-Sport, has been pushed back from 2028 to 2031. Similarly, Porsche, a subsidiary of the VW Group, will need to make decisions regarding their seven-seat electric SUV, codenamed K1, which is scheduled for a 2027 release.
Overall, the software delays within the VW Group are causing setbacks and uncertainty in their electric vehicle roadmap. While the automaker has the opportunity to maximize profits from their existing EV lineup and mitigate the impact of the delay due to the overall slowdown in EV sales, they must also be mindful of increasing competition and the potential challenges of launching aging models. These delays highlight the complex nature of developing cutting-edge software for next-generation vehicles and the importance of meticulous planning and execution in the manufacturing process.
