The Volkswagen Group (VW Group) is one of the worlds largest automobile conglomerates and includes many subsidiary companies and brands such as Volkswagen, Porsche, Audi, Bentley, Ducati, among several others. Oliver Blume became the CEO of the Volkswagen Group in 2022. Under the previous CEO, the VW Group launched a new business unit: CARIAD. The purpose of this unit is to develop software for autonomous driving and for a more interactive consumer experience within vehicles.

Why do you think VW Group initially decided to develop its software capabilities on its own through a new business unit, CARIAD? What challenges arose and why?

This article can help answer this question: VW to Replace Top Software Executives --- Delays caused by venture Cariad lead to CEO Blume's anticipated move1 By William Boston 8 May 2023 The Wall Street Journal

Please answer in 3 paragraphs using organizational theory/operation managment terms