The Volkswagen Group is set to undergo a major shake-up in its software unit as the newly-appointed CEO, Herbert Diess, aims to steer the company towards a more tech-focused future. Diess, who has been with the company since 2015, was appointed CEO in April 2018, succeeding Matthias Müller, who stepped down in the wake of the Dieselgate scandal.

Under Diess’s leadership, Volkswagen has set an ambitious target of becoming the world’s leading electric car manufacturer by 2025. To achieve this, the company is investing heavily in new technologies and partnerships, including a joint venture with Ford to develop electric and autonomous vehicles.

One area that Diess has identified as a priority for change is the company’s software unit, which has been struggling to keep up with rapid advances in technology. In an interview with German newspaper Handelsblatt, Diess stated that the software unit was “in need of a shake-up” and that he was considering “personnel changes” to improve the unit’s performance.

According to reports, Diess is planning to consolidate the company’s software development efforts into a single unit, which will be led by Christian Senger, who currently heads the company’s digital car and services business. The new unit will be responsible for developing software for Volkswagen’s vehicles, as well as for other areas of the company’s business, such as logistics and manufacturing.

The move is seen as a significant shift in strategy for Volkswagen, which has traditionally relied on outsourcing software development to third-party providers. By bringing software development in-house, the company hopes to gain greater control over the development process and to be better able to respond to changing market conditions.

However, the move is also likely to be met with some resistance from within the company. Many of Volkswagen’s engineers have spent their entire careers focusing on traditional automotive engineering, and may be resistant to the changes that are necessary to adapt to a more software-centric future.

In addition to personnel changes, Diess is also expected to make significant investments in the company’s software development efforts. Volkswagen has already announced plans to hire 10,000 new software engineers, and is expected to invest billions of dollars in the development of new technologies over the coming years.

The move comes as other automakers, such as Tesla and General Motors, are also investing heavily in software and other technologies that are critical to the development of electric and autonomous vehicles. With competition in the automotive industry becoming increasingly fierce, Volkswagen’s move to overhaul its software unit is seen as a necessary step to ensure the company’s long-term success.

While the move is likely to face some challenges, it is also seen as a potential opportunity for the company to differentiate itself from competitors and to establish itself as a leader in the development of new technologies. With Diess at the helm, Volkswagen is clearly committed to embracing change and to investing in the future, which could help the company to thrive in the years to come.