HANOVER: As the automobile industry grows increasingly reliant on software, German car marker Volkswagen has admitted that it needs more time than originally expected to build up its own digital systems for future vehicles.

During an industry meeting in Germany on Wednesday, company boss Herbert Diess explained that the problem wasn't only "the software itself. It's also the entire software architecture as a key building block for much else around it."

Besides developing software, VW subsidiary CARIAD (the firm's software company which is also working on a unified software platform for all vehicles of the VW group, including brands like Audi and Porsche) also needs to keep an eye on issues like the integration of control units, networking or connection to the cloud, Diess said.

Another core area will be the technology needed for autonomous driving. "This is certainly the most difficult task," said Driess, adding that Volkwswagen was working on understanding and mapping related functions.

Following reports of delays, cost increase and internal opposition to expanding the division, CARIAD head Dirk Hilgenberg told employees in a letter at the beginning of May: "I see the criticism as an incentive and encouragement to continue working hard and deliver what we promised: our unified software and hardware platform."

While conceding that it was a "mammoth project under massive time pressure", he said that it wasn't "unexpected that not everything is going according to plan."

Asked whether Volkswagen wasn't taking on too much in developing its own software systems, Driess said buying from third parties wasn't an option anymore.

"We don't have to do everything ourselves - only the critical parts," he said, adding that the company had realised how crucial it was to tackle this area.

New driving functions and car-related services, for example, constantly require real-time traffic data, he said, adding that on the other hand, vehicle manufacturers will remain responsible for safety, liability, customer access to the system and regular updates.

Therefore the software needs to be adjusted and updated constantly, Driess said. "You can no longer buy everything from large suppliers."

However, Volkswagen is still working with German supplier Bosch on autonomous driving and on equipping its planned battery cell plants, for example.

Construction of a Volkswagen battery factory in Salzgitter, near company headquarters in Germany's city of Wolfsburg, is due to start in July and become one of six sites planned in Europe, with up to €3 billion in investments expected for each.

The carmaker is looking to built "a new gigafactory roughly every year and a half," Diess said.

Starting in the summer, a separate board of management will also be responsible for VW's battery division. "We need a European manufacturer here," Diess said, adding that he wasn't ruling out taking the division public at some point.

After many discussions with potential suppliers, Volkswagen is now determined to produce batteries itself, according to Diess, including raw material sourcing, research, development, production and recycling.

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