Volkswagen plans to end its automated driving collaboration with auto supplier Bosch, according to a report by Bild. The partnership, launched in 2022, reportedly failed to meet expectations and is set to be terminated in accordance with contract terms.
The termination of this partnership signals Volkswagen's strategic shift in its approach to automated driving technology, potentially impacting its competitiveness and cost structure in a crucial automotive sector.
Volkswagen is reportedly planning to terminate its automated driving partnership with auto supplier Bosch, according to a report by Germany's Bild newspaper. The collaboration, launched in 2022 via Volkswagen's software unit Cariad, aimed to develop software for driver assistance and autonomous driving systems across Volkswagen's brands.
Citing internal sources, Bild stated that the project had not met expectations despite an investment of approximately €1.5 billion ($1.71 billion). Internal assessments found the technology to be not yet competitive. The partnership is scheduled to end according to contract terms, with a final termination not expected before Monday.
Volkswagen intends to source hardware and software for these systems from a new partner, with a replacement currently being chosen and a contract planned by September. This development follows recent reports that Volkswagen is considering significant job cuts and the closure of four German factories as part of a broader cost-cutting and competitiveness drive.