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Agreed, though the software part is a bit mystifying to me. It's not like Europe doesn't have good software engineers, so the fact that so many of Europe's carmakers are having so many problems competing on software is jarring. It has to be some kind of institutional/cultural clash within these organizations.
I think the problem with software for European cars comes from the fact that so much of it is outsourced to so many suppliers (Bosch is one example). One supplier makes an HVAC module and the software for it. Another makes a braking system module, and the software for it. Another makes the drive train control modules, and the software for it. Then the car maker is required to build a car with all these disparate pieces and approaches with yet another outsourced company that makes the over all UX and UI software. Each company's design philosophies, update mechanisms, and testing vary leading to a patchwork quilt of a final product. Yes a patchwork quilt will cover you, but upon usage and washing it will wear differently or fade.
VW specifically ran into just this problem. source
"To do that, the VW Group needed, for lack of a better term, a Tesla-like approach to software and digital technology. Historically for the entire auto industry, "software" means things like engine management, or driver-facing bits like infotainment and navigation, or numerous components made by different suppliers with different software standards who often didn't talk to one another. It was piecemeal and old-school, compared to the smartphones and tablets that have become an integral part of our lives over the past two decades."
Contrast this to the highly vertical approaches of many of the Chinese EV companies or Tesla. These companies build nearly all of their own modules (or at least contract manufacture them) then wrote all their own software for stitching the car together into one experience. There is one software update team. There is one team responsible for the bus and communications standards and protocols. If a team handling the HVAC needs to capture heat from the electric motor team (for energy efficiency and motor performance), these teams are in the same building or at least in the same company.
For better or worse, its cars built like software instead of parts from various disparate manufacturers like one would building a PC.
In both the US and China software developers get paid a lot more than an average job. Not so in Europe.