Why do you think VW Group initially decided to develop its software capabilities on its own through a new business unit, CARIAD?

Guidelines and requirements (please read carefully):

The test is open-book and open-note, but you are NOT permitted to conduct any outside research. 

The Volkswagen Group (VW Group) is one of the world’s largest automobile conglomerates and includes many subsidiary companies and brands such as Volkswagen, Porsche, Audi, Bentley, Ducati, among several others. Oliver Blume became the CEO of the Volkswagen Group in 2022. Under the previous CEO, the VW Group launched a new business unit: CARIAD. The purpose of this unit is to develop software for autonomous driving and for a more interactive consumer experience within vehicles.

The case consists of three short readings. The first reading is a recent Wall Street Journal article; the second is VW Group’s description of CARIAD; and the third reading is a recent press release from the VW Group pertaining to a reorganization of CARIAD. All three readings can be found within the attached document (VW – Case). After completing the three readings (which together serve as the case), write responses to both questions below. 

Question 1: Why do you think VW Group initially decided to develop its software capabilities on its own through a new business unit, CARIAD? What challenges arose and why?

Question 2: Analyze some of the changes the VW Group is now looking to implement with respect to CARIAD. What advice do you have for the VW Group as they reorganize CARIAD in the weeks and months ahead?

  • The exam is comprehensive.
  • These are not short answer questions, but you should be able to answer them in less than one single-spaced page per question (two pages for the entire exam). This is just a suggested maximum. I would advise to aim for at least half a page per question. Grading is based on quality, not quantity.
  • You may look at class notes, lecture slides, and the textbook. You may not look at or use any other source.
  • The exam will be graded on the extent to which you (1) address the questions being asked and (2) demonstrate mastery of course materials through the application of concepts and frameworks.
  • I am not grading on grammar, punctuation, or writing style. However, please try to communicate your ideas as clearly as possible.
  • Your responses should be completely in your own words. Anything not in your own words should be written in quotes (accompanied by the textbook page number, or slide number).

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