Volkswagen’s $5bn tie-up with US electric vehicle start-up Rivian has sparked dismay among staff at the German carmaker’s software division Cariad, with top executives sidelined in the sudden change of strategy.

The June agreement to set up a joint venture that will develop software for both companies’ cars followed budget overruns and setbacks at Cariad that pushed back the rollout of new VW, Audi, and Porsche models by nearly two years.

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