For more details, see my other posts on the topic: https://news.ycombinator.com/item?id=34164748 https://news.ycombinator.com/item?id=34901394
Cars are just one piece in this greater cultural phenomenom. There is a reason why e.g. Android Auto is better, with all its flaws, than the competition. There is a reason why people like Tesla's software.
While that is commonly true, I've also found that driving a modern Audi or a Mercedes is still much better thought out from UX and comfort perspective in comparison to many vehicular products from Sillicon Valley collaborators. Software might be a bit laggy, but many times there are plenty of nice user respecting features that you won't find in modern agile products (basic operations like "reroute me around this closed road" or opening a glove compartment are stupidly complicated or impossible on brilliantly developed products like Tesla).
The Germans also have one other benefit: my car UI doesn't just randomly completely change with updates like Android Auto or Tesla UI does. I'm not a guniea pig for some product manager trying to get his promotion with redesigns.
There has to be a balance somewhere between the dinosaur process of German brands and coked up 5-second attention spam of Sillicon Valley products.
It's a curious setup because most of those subsidiaries ("corporate startups") are huge money sinks and produce little of value. Salary is decent/good, the offices are lavish, and the tech can be interesting. The downside: you cannot shake the feeling of being on a large playground with rich, generous but eventually indifferent parents. I'd say in germany, it's a good place for juniors to pick up some technologies and skills, quite a few former colleagues ended up at prestigious tech companies later.
Core technology like autonomous driving, Engines, CAN, etc... is developed in-house with more rigor, compliance and process, and the disregard for "software engineering" is also due to those agile software subsidiaries producing sloppy 2nd tier, unsuccessful auxiliary technology like apps, services or entertainment stuff. Unlike maybe Tesla, MB or BMW could not afford the reputational damage for selling half-broken autonomous driving.
1) Their management hierarchies only consist of MBA suits that think short term and treat their engineers like apes in a zoo. This frequently leads to engineers actually behaving like apes in a zoo.
2) German culture is deeply based on thinking in silos. They divide everything into boxes in order to organize it "the right way" and don't understand network effects that occur if you focus on building a great (software engineering) culture. Instead, they mindlessly copy-paste whatever fancy thing they see in a silicon valley context.
3) My hypothesis of why German IT products are almost always horrible is that they're rarely thinking from customer's (or developer's!) perspective. They may be proud of some specs of their products but the overall thing is then often just a bunch of related subsystems "pragmatically" tied up with some duct tape.
They still obviously don't understand why they're being outsmarted by Apple, Amazon, Google and others. They're aggressively arrogant and rather lobby the German gov't or cheat to achieve short-time success instead of reorganizing their structures to still be leading in 10 years.
I bet, they internally expect industry leading products 2 years after launch and then will quietly kill the whole thing when they realize that their bet was insane from the beginning.