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Volkswagen boss Diess tells execs third-party software fix isn’t an option
Volkswagen boss Herbert Diess is adamant that the German car company must develop its electric vehicle software in-house. In a recent meeting with executives, Diess outlined Volkswagen’s core needs in the topic of software, indicating that it must be developed in-house and that sourcing effective and dependable software from a notable tech company simply isn’t an option if the company wants to remain independent.
“If we want to retain our independence,” Diess told his top managers in a recent meeting, “we have to be able to develop the software in the car ourselves. This is the only way for us to guarantee long-term success.”
Volkswagen’s EV project, which has been catalyzed by the introduction of the ID. family of vehicles has been a thorn in the side of the world’s leading car company since its introduction. While Volkswagen has made electric models before, they have not been on the company’s new MEB (Modular electric drive matrix) platform designed for electric cars. The platform requires a robustly accurate and scalable software program, something that Volkswagen has encountered several problems with early on in its electric offensive.
But the roadblocks and bottlenecks in Volkswagen’s software are not issues that Diess is willing to have someone else fix. He expects his competent software engineers and other team members to figure out the shortcomings on their own in an attempt to remain free of dependence on another company, whether it would be a tech company like Apple or a fellow electric automaker like Tesla. “We must not hand over data sovereignty, the customer interface, and ultimately the “brain” of the car to the big tech players.”
The software essentially acts as the brain of the car. To give owners a more pleasurable ownership experience, the software needs to be free of any discrepancies. The issues can cause things as small as voice recognition to go awry or things as large as software updates to be uninstallable, making a vehicle outdated and, in some cases, unusable. Volkswagen has had its fair share of issues with the MEB platform, but it claims that many of the difficulties it has encountered are solved. Additionally, it has promised owners that software updates will be ready to be downloaded to cars regularly beginning Summer 2021.
Volkswagen's software issues with the ID.3 are worse than reported: 'It is an absolute disaster'
With automakers big and small fighting to keep pace with Tesla, Diess understands the urgency of the project at hand. “This is by far the most important project for this Group in the next five, probably ten years,” he said, according to Business Insider. Automakers are being forced to adapt or be left behind as Tesla extends its lead in the sector, especially in software. While other car companies like Ford are releasing highly-competitive vehicles like the Mustang Mach-E, which has proven to be a notable adversary to the Tesla Model Y, the sector is only becoming more concentrated on what seems like a daily basis. With new companies coming around, focusing purely on electric powertrains, legacy automakers have almost dragged their feet through the proverbial mud, only delaying the inevitable: they will fall behind if they do not focus on electrification.
Volkswagen is arguably the most invested legacy automaker in the EV transition. Diess has been extremely vocal regarding VW’s transition to electric cars, recognizing that the market will only become more competitive, more robust, and more concentrated. A lead now could extend into several decades and make Volkswagen more desirable than other car companies who will confront these same issues in a few years.
Elon Musk
Microsoft partners with Starlink to expand rural internet access worldwide
The update was shared ahead of Mobile World Congress.
Microsoft has announced a new collaboration with Starlink as part of its expanding digital access strategy, following the company’s claim that it has extended internet connectivity coverage to more than 299 million people worldwide.
The update was shared ahead of Mobile World Congress, where Microsoft detailed how it surpassed its original goal of bringing internet access to 250 million people by the end of 2025.
In a blog post, Microsoft confirmed that it is now working with Starlink to expand connectivity in rural and hard-to-reach regions.
“Through our collaboration with Starlink, Microsoft is combining low-Earth orbit satellite connectivity with community-based deployment models and local ecosystem partnerships,” the company wrote.
The partnership is designed to complement Microsoft’s existing work with local internet providers and infrastructure companies across Africa, Latin America, and India, among other areas. Microsoft noted that traditional infrastructure alone cannot meet demand in some regions, making low-Earth orbit satellite connectivity an important addition.
Kenya was cited as an early example. Working with Starlink and local provider Mawingu Networks, Microsoft is supporting connectivity for 450 community hubs in rural and underserved areas. These hubs include farmer cooperatives, aggregation centers, and digital access facilities intended to support agricultural productivity and AI-enabled services.
Microsoft stated that 2.2 billion people globally remain offline, and that connectivity gaps risk widening as AI adoption accelerates.
Starlink’s expanding constellation, now numbering more than 9,700 satellites in orbit, provides near-global coverage, making it one of the few systems capable of delivering broadband to remote regions without relying on terrestrial infrastructure.
Starlink is expected to grow even more in the coming years as well, especially as SpaceX transitions its fleet to Starship, which is capable of carrying significantly larger payloads compared to its current workhorse, the Falcon 9.
Elon Musk
Tesla expands US LFP battery supply with LG Energy Solution deal: report
The report was initially published by TheElec, citing industry sources.
LG Energy Solution (LGES) will manufacture lithium iron phosphate (LFP) energy storage system (ESS) batteries for Tesla at its Lansing, Michigan facility.
The report was initially published by TheElec, citing industry sources.
LG Energy Solution’s Lansing plant, formerly known as Ultium Cells 3, was previously operated as a joint venture with General Motors. LGES acquired GM’s stake in May 2025 and now fully owns the site. With a production capacity of 50 GWh per year, it is one of the company’s largest facilities in North America.
LG Energy Solution is converting part of the Lansing factory to produce LFP batteries for energy storage systems. Equipment orders for the new lines have already been placed, and mass production is reportedly expected to begin in the second half of next year.
Last July, LG Energy Solution disclosed a 5.94 trillion won battery supply agreement running from August 2027 to July 2030. While the company did not name the customer, industry sources pointed to Tesla as the buyer.
Tesla has primarily used CATL’s prismatic batteries for its Megapack systems. The move to source prismatic LFP cells from LG Energy Solution’s U.S. plant could then be seen as part of Tesla’s efforts to bolster its North American supply base for its energy storage business.
For the Lansing conversion, LG Energy Solution reportedly plans to use electrode equipment originally ordered under its Ultium Cells venture with General Motors. Suppliers reportedly include CIS and Hirano Tecseed for electrode systems, TSI for mixing equipment, CK Solution for heat exhaust systems, A-Pro for formation equipment, and Shinjin Mtech for assembly kits.
Tesla currently manufactures energy storage products at facilities in California and Shanghai, though another Megafactory that produces the Megapack is also expected to be built in Texas. As per recent reports, the Texas Megafactory recently advanced with a major property sale.
News
Tesla begins Grok AI chatbot rollout to Australia and New Zealand fleet
The update follows earlier deployments in the United States and Europe.
Tesla has rolled out its Grok AI assistant to Australia and New Zealand, embedding the conversational chatbot directly into compatible vehicles via an over-the-air update.
The system, developed by Elon Musk’s xAI, is now live on select models, giving drivers access to a voice-based assistant that goes well beyond traditional command-driven controls.
The update follows earlier deployments in the United States and Europe.
Tesla Australia confirmed Grok is available on Model S, Model 3, Model X and Model Y vehicles equipped with an AMD processor and running software version 2025.26 or later.
“Grok is coming to Teslas in Australia and New Zealand. It can answer almost any question using real-time information & also add/edit navigation destinations to become your personal guide. Phased rollout has now begun to eligible vehicles,” Tesla Australia and New Zealand wrote in a post on its official X account.
Drivers can activate Grok using the steering wheel controls once the update is installed. Access requires either a Premium Connectivity subscription or a stable Wi-Fi connection.
Unlike conventional in-car voice assistants that rely on fixed prompts, Grok is designed to respond conversationally. It can adjust navigation mid-trip, locate nearby points of interest, explain dashboard warnings, provide driving guidance and reference the owner’s manual.
Tesla noted that interactions with Grok are processed by xAI and remain anonymous to Tesla, adding that conversations are not linked to a specific driver or vehicle.
Grok has attracted attention overseas for offering multiple interaction modes. In the U.S., users can select personalities such as Assistant, Language Tutor, Therapist, Storyteller and Meditation. Additional optional modes for adult users include settings labeled Unhinged, Motivation, Argumentative, Romantic and even Sexy.
Viral clips shared online have shown Grok adopting sarcastic or playful tones that differ from more neutral digital assistants, with the AI assistant typically catching drivers off-guard with its sharp personality and wit.