Volkswagen and Bosch End Autonomous Driving Partnership

Volkswagen (VW) and supplier Bosch have terminated their three‑year‑old Automated Driving Alliance three years ahead of schedule, ending a joint effort that began in 2022 to develop assisted and automated driving functions. Both companies said the project, which attracted about €1.5 billion in investment, will not continue toward Level 3 capabilities.

The collaboration succeeded in delivering a Level‑2 system slated for inclusion in VW’s upcoming ID. Every1 model, expected to enter series production in 2027. VW’s chief executive Oliver Blume indicated the carmaker will now source hardware and software for automated driving from external partners, shifting away from the in‑house development pursued by its software unit Cariad. Bosch, meanwhile, confirmed it already has orders for the developed technology from other manufacturers.

The split highlights growing pressure on VW to accelerate its autonomous‑driving roadmap in the face of competition from Tesla and Chinese manufacturers, and marks a strategic pivot toward faster scaling and external sourcing of key vehicle technologies.