Volkswagen to end Bosch autonomous‑driving alliance and weigh shutting four German factories, cutting up to 100,000 jobs

German automaker Volkswagen is preparing to terminate its Automated Driving Alliance with supplier Bosch. The partnership, launched in 2022 and backed by about €1.5 billion, has been judged internally as not competitive, especially at the Level 2++ hands‑free capability. Volkswagen plans to end the contract no earlier than 29 June, with a new hardware‑software supplier to be selected by September.

At the same time, Volkswagen is assessing a major restructuring to slash costs after a sharp profit decline and mounting pressure from Chinese EV rivals, tariffs and rising energy costs. The plan, driven by CEO Oliver Blume and CFO Arno Antlitz, could see up to 100,000 jobs cut worldwide and the closure of four German plants – Hanover, Zwickau, Emden and Audi’s Neckarsulm – after the current model cycles finish. Investment spending is slated to be reduced by roughly 15 % to about €130 billion over five years, and the group may spin off the core VW brand and its components business into separate entities.