Volkswagen is reportedly ending its Automated Driving Alliance (ADA) with Bosch, bringing to a close a collaboration established to develop scalable assisted and automated driving systems up to SAE Level 3. Reuters reported that neither company has officially confirmed the partnership’s end.
The alliance, formed in 2022 by Volkswagen, Bosch and Volkswagen’s software subsidiary Cariad, was created to develop cost-effective advanced driver-assistance technologies that could be deployed across multiple vehicle segments.
According to media reports, Volkswagen invested approximately €1.5 billion in the initiative but is now dissatisfied with the pace and competitiveness of the technology developed.
Development Reportedly Falls Behind Rivals
More than 1,000 specialists worked on the ADA programme, while Cariad previously said the project was supported by more than 1,500 test and data collection vehicles operating across Europe, the United States and Japan.
However, reports from German media suggest Volkswagen’s engineering teams believe the alliance has fallen behind competitors, particularly in the development of Level 2++ systems capable of hands-free automated driving in urban environments.
Recent advances by competitors have increased pressure in this segment. Tesla has expanded availability of its FSD (Supervised) system into Europe, while Mercedes-Benz is preparing to introduce MB.Drive Assist Pro in European markets following its U.S. launch. BMW has also introduced its Motorway & City Assistant technology in the new iX3.
According to reports, Volkswagen Group Chief Executive Officer Oliver Blume decided to end the partnership after expressing concerns that development was progressing more slowly than rival technologies, particularly those emerging from China.
Volkswagen already collaborates with Chinese technology company Horizon Robotics on automated driving systems for vehicles sold in China.
Mobileye Emerges as Potential Partner
Neither Volkswagen nor Bosch has formally confirmed that the alliance has been dissolved.
A spokesperson for Cariad told German media that the company regularly evaluates its development partnerships to ensure they remain aligned with strategic priorities, technological objectives and market developments. Bosch later provided the same statement to Reuters.
According to reports, Volkswagen is now seeking a new technology partner to develop future driver-assistance systems from Level 2++ onwards.
One of the companies considered a potential candidate is Mobileye. Volkswagen has already been working with the Israeli technology firm on Level 2+ motorway assistance systems for combustion-engine vehicles and also uses Mobileye technology for the Level 4 automated driving system in the ID. Buzz AD, which is scheduled to be deployed in the United States through a partnership with Uber.
Source: bild.de, handelsblatt.com, automobilwoche.de