Volkswagen is planning a shake-up at the top of its ailing software arm, which has been plagued by delays and budget misses.

Cariad, the German software arm created in 2020, has been beset with problems which had led to delays in the launch of new models. One of the priorities for VW’s new chief executive Oliver Blume has been to sort out Cariad’s software strategy, which is becoming increasingly important in the era of the internet-connected car.

Cariad’s supervisory board will propose Peter Bosch, a VW veteran who in 2017 joined Bentley, as the unit’s new head, according to two people familiar with the talks. The software arm’s current chief Dirk Hilgenberg, as well as technology chief Lynn Longo and chief financial officer Thomas Sedran, are all looking for new posts within the VW group, the people said.