On the Dash:
- Volkswagen reportedly plans to end its automated driving partnership with Bosch as part of a broader push to cut costs and boost competitiveness.
- The partnership launched in 2022 through Volkswagen’s software unit Cariad to develop driver assistance and autonomous driving software across VW’s brands.
- Volkswagen is reportedly evaluating replacement partners, with a new contract planned by September.
Volkswagen is preparing to walk away from its automated driving partnership with Bosch, according to a report from German newspaper Bild citing multiple sources. The move would mark another significant setback for the embattled automaker’s technology ambitions.
The partnership between Bosch and Volkswagen’s software unit Cariad was established in 2022 with the goal of developing driver assistance and autonomous driving software across Volkswagen’s brands. Internal assessments found the technology had not met expectations and was not yet competitive, despite roughly $1.71 billion being invested in the project.
In a joint statement, representatives for Bosch and Cariad said they do not comment on market rumors, but noted the two companies had worked closely together for years with a shared goal of bringing automated driving systems to a mass market worldwide.
The tie-up is expected to be wound down in accordance with the terms of the existing contract, with a final termination not expected in the coming days, according to Bild. Volkswagen is reportedly evaluating new hardware and software partners to replace Bosch, with a contract planned by September.
The decision reflects Volkswagen’s ongoing effort to reduce costs and sharpen its competitive position at a difficult moment for the company. Separate reports indicate that Volkswagen is considering shutting four German factories and cutting as many as 100,000 jobs as it works through a significant restructuring.
For the automotive industry, the development is a reminder that automated driving technology remains a major commercial challenge, even for well-funded partnerships between major players. Volkswagen and Bosch committed years of work and more than $1.7 billion in investment to the project before internal reviews reportedly concluded the technology was not where it needed to be.
For dealers, the news underscores how much uncertainty still surrounds the timeline for widespread autonomous driving technology. As automakers reassess AV strategies and restructure partnerships, the path to deploying competitive driver assistance and autonomous systems at scale remains longer and more complicated than many early projections suggested.
