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Volvo Ends Luminar Partnership as Lidar Is Dropped From Flagship Models

The split leaves the financially strained sensor maker warning that bankruptcy is possible.

Overview

  • Volvo confirmed it has discontinued its five-year relationship with Luminar and will no longer make the Iris lidar standard on the EX90 and ES90, though it may be offered as an option.
  • Volvo cited limited availability of the lidar hardware and said Luminar failed to meet contractual obligations.
  • Luminar told investors it has defaulted on several loans and warned that insolvency is a real risk as it works with lenders on a resolution.
  • The company reported about $72 million in cash and marketable securities against roughly $429 million in debt and said its cash runway could run out by early 2026 without new capital.
  • Luminar laid off around 25% of staff, suspended further Iris commitments to Volvo, filed a claim for significant damages, and continues to face an SEC investigation after leadership departures earlier this year.