Volkswagen (VW), the German automaker, has announced that it is replacing the head of its struggling software unit, following years of setbacks and challenges for the company’s push into electric vehicles (EVs).

According to reports, Christian Senger, who was appointed head of VW’s Car.Software unit in January 2019, will be leaving the company at his own request. The company’s new CEO, Herbert Diess, will take direct responsibility for the unit, which is responsible for developing software for VW’s electric and self-driving vehicles.

The announcement comes amid growing concerns about VW’s ability to compete in the fast-growing EV market, which has become increasingly crowded with new players in recent years. The company has been investing heavily in developing its own EV technology and has set a target of selling one million electric cars annually by 2025.

However, the company has struggled to deliver on its promises, facing delays and setbacks in the development of its EVs and related technologies. The Car.Software unit, in particular, has been plagued by technical problems, with reports of conflicts between different development teams and concerns about the quality of the software being produced.

In a statement, Diess acknowledged the challenges facing the company’s software arm, saying that “we must significantly improve the performance of our software and strengthen our competitiveness in this crucial area.” He added that he would be “personally driving forward the realignment” of the unit and would “take direct responsibility for this task.”

The move to replace Senger is seen as a signal that the company is taking a more aggressive approach to addressing its software challenges. Diess, who took over as CEO in 2018, has been pushing for greater efficiency and agility across the company, and has said that VW needs to become “the Tesla of Europe” in order to succeed in the EV market.

The leadership change at the Car.Software unit is just the latest in a series of shakeups at VW as the company tries to regain its footing in the wake of the “Dieselgate” scandal, which saw the company admit to cheating on emissions tests for diesel-powered vehicles.

In recent years, the company has been investing heavily in EVs and related technologies, including battery production and charging infrastructure. However, it faces stiff competition from established players like Tesla, as well as new entrants like Chinese automaker Nio and upstart EV manufacturer Rivian.

Despite these challenges, VW remains optimistic about its prospects in the EV market. In a recent interview with German newspaper Handelsblatt, Diess said that he expects the company to “catch up” to Tesla in terms of EV production within the next two to three years.

Whether the leadership change at the Car.Software unit will help VW achieve that goal remains to be seen. However, with the EV market growing rapidly and competition intensifying, the company will need to move quickly and decisively if it hopes to stay ahead of the curve.