Alexander Doria frames Volkswagen's massive restructuring as a direct consequence of years spent lagging on AI and software development, turning what looks like a cost-cutting exercise into an expensive lesson for legacy automakers facing nimbler Chinese EV competition.
They made many mistakes and still haven't gotten the message that they need to innovate—and innovate hard—to stay relevant in this world. Name an innovation they've shipped.
What's ironic is their name is on the building where the Waymo company started. They knew what was coming, but they refused to ship it. Therefore, this is happening now. The mistakes were made 15 years ago.
Germany must be saved
Up to 100,000 positions could vanish worldwide along with four German plants, a move the company says is needed to stay profitable but one that has already drawn pushback from unions and local governments ahead of a key July board meeting.
The connection between these cuts and prior underinvestment in autonomous tech or AI comes mainly from commentator takes rather than the official announcements, leaving open how much of the crisis traces to R&D choices versus broader market shifts.
Many users criticized Volkswagen's job cuts and innovation shortfalls by highlighting past emissions cheating, unreliable products, and the outdated nature of legacy automakers facing Chinese EV competition.
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Not getting into AI and competitive R&D might as well end up being the costly option.
BREAKING: Volkswagen is reportedly planning to cut 100,000 jobs and end production at four German plants over the coming years
@Dorialexander But they did, they spent $$$$. Just wasn't their thing.
@Dorialexander No point hanging on to dinosaurs, Europe should pivot to what they are best at— lithography, high end machine tools, luxury, tourism
@Scobleizer @2112Power An innovation that Volkswagen shipped? How about the diesel emissions cheat device. https://www.bbc.com/news/business-34324772
@Scobleizer @2112Power Rivian will save them…lol
@Scobleizer @2112Power They just got to make a product that works. It’s not so much about innovation as is about keeping the car out of the shop.
@christianbarra Most of these did not exist or went to other things than AI. Most funded EU LLM project is like 20-50M.
@Scobleizer @2112Power They make an amazing EV, but only in China
@Scobleizer @2112Power The mistakes were made 30 years ago when Europe collectively started gutting R&D in favor of efficiency and made it a cultural sin to fail as a business