Volkswagen AG (VW), to which the Chinese market is indispensable, has a problem. It can't catch up to rivals from the most populous country on Earth in terms of software.
While Chinese players like BYD, NIO and XPeng are equipping their vehicles with high-level connectivity, sophisticated cameras for singing and streaming, and even karaoke microphones, Western automakers are lagging behind when it comes to tapping into local tastes.
Tackling the issue at hand
So what does it intend to do to solve the issue? The German marque has taken a page out of all that has been done and is ready implement it. That page, it turns out, was about hiring local talent.
Yup, Chief Executive Officer of VW, Herbert Diess, who believes that self-driving functions in cars will bring about an even more fundamental transformation of the industry, has announced that the company is considering "big moves in China."
This includes hiring "several thousand" software engineers in India's neighbouring nation, where, VW already employs 90,000 people and operates over 40 vehicle and components factories along with partners.
Diess believes developing software for China in Europe will not work. Expectations from the buying public are vastly different as is. Thus, he says, "We are going to have a software team in China, for China."