Volkswagen, its software subsidiary Cariad, and Bosch have officially concluded their Automated Driving Alliance (ADA) after completing development of an AI-based SAE Level 2 driver assistance platform, ending a partnership that was originally expected to continue until 2029.
The companies said the software stack is now ready for series production and will be incorporated into their respective products. Volkswagen confirmed the technology will debut in the ID.EVERY1, its upcoming entry-level electric vehicle scheduled for launch in 2027.
Alliance Delivers AI-Based Level 2 System
The Automated Driving Alliance was established to jointly develop advanced driver assistance technologies. According to Cariad, the resulting AI-powered SAE Level 2 platform supports hands-free driving in certain traffic situations and can be integrated across multiple vehicle segments, from compact city cars to premium models, as well as battery-electric and internal combustion vehicles.
Volkswagen CEO Oliver Blume said the project had established an important technological foundation for the company’s future driver assistance systems.
“Advanced driver assistance systems are becoming increasingly important for our customers. They make driving safer, more comfortable, and easier. That’s why the Volkswagen Group remains committed to bringing highly automated driving to Europe and North America and is consistently aligning its strategy toward that goal.”
He added that the collaboration between Cariad and Bosch had created a strong technology platform for future assisted driving systems.
Reports Point to Strategic Shift
According to Automobilwoche, the cooperation agreement had originally been scheduled to run until the end of 2029, but Volkswagen and Cariad decided to terminate the alliance ahead of schedule.
German business newspaper Handelsblatt reported that Volkswagen concluded the partnership would not enable it to reach SAE Level 3 automated driving quickly enough. At Level 3, the vehicle assumes responsibility for driving under certain conditions, allowing drivers to take their eyes off the road while remaining ready to regain control if requested.
Despite ending the alliance, Volkswagen intends to continue developing the Level 2 platform internally while seeking a new technology partner for more advanced automated driving capabilities.
Mobileye and Wayve Linked to Future Collaboration
According to Handelsblatt, Israeli autonomous driving technology company Mobileye is considered a leading candidate for a future partnership. Volkswagen has already been working with Mobileye on Level 2+ highway driving assistance systems for combustion-engine vehicles and uses the company’s Level 4 autonomous driving technology in the ID. Buzz AD, which is expected to begin commercial deployment in the United States through Uber.
The newspaper also reported that British artificial intelligence startup Wayve is viewed internally as another potential partner. Wayve develops AI foundation models for autonomous driving that learn and interpret road environments using approaches similar to modern large language models.
The company secured approximately €1 billion in funding earlier this year from financial investors and strategic backers including Mercedes-Benz, Nissan, Stellantis, Uber, Nvidia, and Microsoft.
While the Automated Driving Alliance has come to an end, the AI-based Level 2 platform developed through the collaboration will continue to form part of both Bosch’s and Volkswagen’s driver assistance strategies, with the ID.EVERY1 becoming the first Volkswagen model to feature the technology.
