Overview
- Volkswagen, its software unit Cariad and supplier Bosch announced on Wednesday, July 1 that they had formally ended the Automated Driving Alliance and will stop joint development of Level 3 automated driving systems.
- The partners said the work done so far produced a Level 2, AI‑based driver assistance system that will be productized and can be integrated across vehicle classes, with VW expecting to use it on the ID.Every1 planned for 2027.
- Press reports say Volkswagen invested roughly €1.5 billion in the alliance but judged the technology not competitive enough to continue co‑development for higher automation, a claim companies describe as the reason for the strategy shift.
- The Cariad works council sharply criticized the decision, warning that outsourcing core software and hardware risks losing in‑house know‑how, value creation and long‑term jobs at Volkswagen.
- The move reflects CEO Oliver Blume's broader strategy to buy specialist hardware and software from suppliers to accelerate rollout and scaling, a change that could reshape supplier ties and how automakers pursue higher levels of vehicle automation.