German automaker Volkswagen is reportedly preparing to dissolve its automated driving partnership with auto parts supplier Bosch, according to Germany’s Bild newspaper, which cited multiple internal sources in a Sunday report.
The collaboration between Bosch and Volkswagen’s software division, Cariad, got underway in 2022 with the goal of developing driver assistance and self-driving software for use across Volkswagen’s lineup of vehicle brands.
When reached for comment, a Volkswagen spokesperson directed questions to Cariad. In response, Bosch and Cariad issued a joint statement saying they do not address market rumors. The statement acknowledged the two companies have maintained a close working relationship for years and share a goal of bringing automated driving technology to consumers around the world at scale.
“As a matter of principle, we regularly review our development partnership and continuously assess whether it aligns with our strategic and technological goals as well as current market developments,” the statement read, adding that the companies do not discuss the details of confidential partner conversations.
According to Bild’s internal sources, the venture failed to deliver on its promises after approximately €1.5 billion — roughly $1.71 billion — was poured into it. Internal reviews reportedly concluded that the technology had not reached a competitive level.
Bild reported that the wind-down of the Bosch arrangement is expected to follow the terms laid out in the existing contract, with a formal end no earlier than Monday.
Volkswagen is said to be actively searching for a new partner to supply both the hardware and software needed for its automated driving systems, with a contract expected to be finalized by September.
The latest development comes on the heels of reports from Friday indicating that the struggling automaker is weighing the closure of four factories in Germany and may cut its workforce by as many as 100,000 jobs.
