BERLIN—
Volkswagen AG
VOW -0.16%
Chief Executive
Oliver Blume
has put plans for a self-driving vehicle under review in the first sign since his appointment two months ago that he is walking back some of his predecessor’s most ambitious technology ventures.
Mr. Blume is likely to delay the Trinty self-driving electric car project and could cancel plans to build a new factory for the vehicle near its headquarters, people familiar with the matter said.
In a message Thursday that was seen by The Wall Street Journal, Mr. Blume and VW brand CEO
Thomas Schäfer
told employees, “We are using this opportunity to review all projects and investments and determine whether they are viable.”
The move shows how Mr. Blume, who took the helm in September after the board ousted
Herbert Diess,
is beginning to reorder VW’s most ambitious—and fraught—endeavors to focus on near-term implementation of key software and technology for coming models.
Under Mr. Diess, the world’s second-largest auto maker by sales began to develop in-house software for its stable of brands. But the division, called Cariad, has struggled to deliver. Now, its most ambitious project could be delayed yet again, with implications for VW’s self-driving car ambitions.
“We don’t have the know-how to put a car on the street in 2026 that would be on the same level as a
Tesla
,” one of the people familiar with the developments said.
A self-driving e-Golf car being tested in Hamburg, Germany, in 2019.
Photo:
fabian bimmer/Reuters
Mr. Blume, who is also the CEO of VW’s sports car maker
Porsche AG
, is putting more emphasis on the independence of VW’s brands, which under Mr. Diess had become more dependent on top-down decisions.
Drawing from the experience of Porsche’s recent public listing, Mr. Blume has asked each brand to prepare what he calls a “virtual IPO,” which means they will go through the preparations for a listing as an exercise to increase their focus on profitability and transparency to capital markets.
Mr. Blume has said that no further listings are planned. Analysts say the exercise illustrates Mr. Blume’s focus on boosting profitability in the short term as opposed to investing in costly long-term projects that may never pan out.
In the letter to employees, Mr. Blume and Mr. Schäfer said it was too soon to announce any details of their review.
Elsewhere, French-American auto maker
Stellantis
NV, whose brands include Peugeot, Chrysler, Jeep and Maserati, said it would buy aiMotive, a developer of artificial intelligence and autonomous driving software. Stellantis said the acquisition would enhance its development of self-driving car technologies.
Write to William Boston at [email protected]
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