Volkswagen is now looking for a new partner for autonomous driving systems, with a replacement likely by September, even as the company explores deeper restructuring measures including potential factory closures and job cuts.German carmaker Volkswagen plans to end its automated driving tie-up with auto supplier Bosch as part of a wider push to cut costs and boost competitiveness, Germany’s Bild newspaper reported on Sunday, citing multiple sources.
The Bosch partnership was launched in 2022 with Volkswagen’s software unit Cariad to develop software for driver assistance and autonomous driving across Volkswagen’s brands.
A spokesperson for Volkswagen directed inquiries to Cariad.
Bosch and Cariad issued a joint statement saying they did not comment on market rumours. The statement noted the two had worked together closely for years and wanted to bring automated driving systems to a mass market worldwide.
“As a matter of principle, we regularly review our development partnership and continuously assess whether it aligns with our strategic and technological goals as well as current market developments,” it said, noting they did not comment on confidential discussions with partners.
Citing internal sources, Bild said the project had not met expectations, after around €1.5 billion ($1.71 billion) had been invested in it. Internal assessments found the technology was not yet competitive, it added.
The Bosch tie-up is scheduled to be ended in accordance with the terms of the contract and a final termination would not occur before Monday, the newspaper said.
Volkswagen plans to source hardware and software for such systems from a new partner, Bild said. A replacement is currently being chosen, with a contract planned by September.
The Bild story followed reports on Friday that the embattled carmaking giant is considering shutting four German factories and ramping up job cuts to as many as 100,000.
