Volkswagen to End Bosch Autonomous‑Driving Partnership amid Cost‑Cutting Drive

Volkswagen AG announced it will terminate its partnership with Bosch on autonomous‑driving and driver‑assistance systems. The joint venture, run by VW’s Cariad unit, began in 2022 and received about €1.5 billion in investment, but internal reviews concluded the technology was not competitive. VW plans to end the agreement according to contract terms and will seek a new supplier for ADAS and autonomous‑driving software, aiming to finalize a new deal by September.

The move is part of a broader restructuring program. VW has outlined plans that could cut up to 100 000 jobs worldwide and close four German plants (Hanover, Zwickau, Emden and Audi’s Neckarsulm facility). The company stresses that Polish factories in Poznań‑Antoninek, Września and Swarzędz are not targeted for layoffs and will instead shift to electric‑vehicle production. Analysts note the split reflects growing pressure from U.S. and Chinese technology rivals and a shift away from in‑house software development.

Volkswagen’s decision follows a slowdown in sales in China and the United States and is being framed as a cost‑saving measure to keep the group competitive as it accelerates its electrification strategy.