VW seeks 'pay-as-you-go' model for driverless cars to bypass Tesla  

Volkswagen is working to build an operating system that is capable of frequent updates to enable enhancements such as driver-assistance features — areas where Tesla is well ahead

Herbert Diess, chief executive of Volkswagen, said his company can remain a leading car manufacturer and bypass Tesla only if it steps up its software game.

Volkswagen chief executive Herbert Diess has said his company can remain a leading car manufacturer and bypass Tesla only if it steps up its software game. That makes the company’s Cariad unit a linchpin of its long-term success.

So far, things have not gone smoothly. The division — set up in 2020 after a previous digital push went awry — introduced a toolkit for VW’s ID series of electric cars, the first model of which debuted with missing features.