Volkswagen is set to terminate its autonomous driving partnership with supplier Bosch, according to a report by German newspaper Bild. The paper cited multiple independent sources and described the move as part of a broader corporate restructuring designed to secure the long-term survival of Germany's largest automaker.
According to the Bild report, internal assessments concluded that the alliance had not reached the level of technological development originally anticipated. Specialist teams within the company assessed the technology as no longer competitive.
The shortfall is particularly acute in the area of hands-free driving in urban environments, a capability known as Level 2++, which allows a vehicle to navigate city roads without the driver placing hands on the steering wheel. Volkswagen is said to view the gap between its current capabilities and those of its competitors as significant in this segment.
Bosch and Volkswagen's software subsidiary CARIAD had originally been tasked with jointly developing a modular system for driver assistance and automated driving. The partnership was conceived as a direct response to competitive pressure from US electric vehicle maker Tesla and from Chinese manufacturers.
Despite the decision to pull out, the partnership had already consumed approximately €1.5 billion in investment, according to Bild. Going forward, Volkswagen intends to source the hardware and software for future systems from third-party suppliers and develop them further in-house, rather than continuing to build them jointly with Bosch.
Separately, Manager Magazin reported that the broader restructuring at Volkswagen will involve deeper job cuts than previously announced, as well as factory closures in Germany. Citing insider sources, the magazine reported that up to 100,000 positions could be eliminated globally. Volkswagen did not confirm the figures on the Friday in question but acknowledged that far-reaching changes were imminent, describing the upcoming measures as "profound."
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