Overview
- Volvo confirmed it will remove lidar entirely from the EX90 and ES90 starting with the 2026 model year and has terminated its relationship with Luminar.
- Volvo said limited availability of the hardware and Luminar’s failure to meet contractual obligations drove the decision to end the five-year deal.
- Luminar told investors it has filed a claim for significant damages against Volvo and suspended further Iris lidar commitments, while cautioning recovery in court is uncertain.
- Luminar is under severe financial pressure with loan defaults, about a 25% workforce reduction, a potential bankruptcy warning, leadership turnover, and an SEC inquiry.
- The automaker has not indicated a new lidar supplier and says it is contacting affected customers about order impacts for the EX90 and ES90.