Volkswagen Terminates Bosch Intelligent Driving Partnership

[Strategic Partnership Terminated] Volkswagen has officially canceled its €1.5 billion joint high-level intelligent driving development project with Bosch.

Core Strategic Shift: Volkswagen Turns to External Procurement for Intelligent Driving Solutions

Due to delayed R&D progress and escalating costs, Volkswagen has decided to terminate its L2/L3 autonomous driving collaboration with Bosch, which began in early 2022. The original plan involved Cariad and Bosch jointly developing an integrated hardware-software system for Volkswagen, Audi, and Porsche, but repeated missed milestones led senior management to lose patience.

Underlying Strategy: Cost Reduction and Supply Chain Restructuring for Greater Efficiency

This move is part of Volkswagen’s broader global strategy to scale back its in-house intelligent driving initiatives, aiming to reduce self-developed investments and accelerate time-to-market. The company is actively evaluating new suppliers and plans to finalize an alternative partnership by September.

Industry Impact: Chinese Intelligent Driving Firms Gain Opportunity to Enter European Market

Volkswagen has already partnered with Horizon Robotics in China on intelligent driving systems. This strategic pivot could open the door for technically mature and cost-effective Chinese suppliers to access the premium European market.