Volkswagen, Cariad, and Bosch have officially ended their Automated Driving Alliance after completing development of an AI-based SAE Level 2 driver assistance platform, three years ahead of schedule. The companies concluded the partnership would not enable Volkswagen to reach more advanced autonomous driving capabilities quickly enough, prompting the automaker to seek new technology partners for higher levels of automation.

What Happened to the Volkswagen-Bosch Partnership?

The Automated Driving Alliance was established to jointly develop advanced driver assistance technologies. After years of collaboration, the three companies successfully created an AI-powered SAE Level 2 platform that supports hands-free driving in certain traffic situations and can be integrated across multiple vehicle segments, from compact city cars to premium models, as well as battery-electric and internal combustion vehicles.

The partnership agreement was originally scheduled to run until the end of 2029, but Volkswagen and Cariad decided to terminate the alliance ahead of schedule. According to German business reporting, Volkswagen concluded the cooperation would not enable it to reach SAE Level 3 automated driving quickly enough. At Level 3, the vehicle assumes responsibility for driving under certain conditions, allowing drivers to take their eyes off the road while remaining ready to regain control if requested.

"Advanced driver assistance systems are becoming increasingly important for our customers. They make driving safer, more comfortable, and easier. That's why the Volkswagen Group remains committed to bringing highly automated driving to Europe and North America and is consistently aligning its strategy toward that goal," said Oliver Blume, CEO of Volkswagen.

Oliver Blume, CEO at Volkswagen

Despite ending the alliance, Volkswagen intends to continue developing the Level 2 platform internally while seeking a new technology partner for more advanced automated driving capabilities. The AI-based Level 2 platform developed through the collaboration will continue to form part of both Bosch's and Volkswagen's driver assistance strategies, with the ID.EVERY1, Volkswagen's upcoming entry-level electric vehicle scheduled for launch in 2027, becoming the first model to feature the technology.

Who Could Replace Bosch in Volkswagen's Autonomous Driving Plans?

Volkswagen is now exploring partnerships with companies that can accelerate its path to higher levels of autonomous driving. Two candidates have emerged as leading options based on internal discussions and existing relationships.

• Mobileye: The Israeli autonomous driving technology company is considered a leading candidate for a future partnership. Volkswagen has already been working with Mobileye on Level 2+ highway driving assistance systems for combustion-engine vehicles and uses the company's Level 4 autonomous driving technology in the ID. Buzz AD, which is expected to begin commercial deployment in the United States through Uber.
• Wayve: The British artificial intelligence startup develops AI foundation models for autonomous driving that learn and interpret road environments using approaches similar to modern large language models. Wayve secured approximately one billion euros in funding earlier this year from financial investors and strategic backers including Mercedes-Benz, Nissan, Stellantis, Uber, Nvidia, and Microsoft.
• Internal Development: Volkswagen plans to continue developing its Level 2 platform internally while pursuing partnerships for more advanced capabilities, maintaining control over core technology while accelerating progress through external expertise.

The shift reflects a broader industry trend where automakers are recognizing that achieving higher levels of autonomous driving requires specialized expertise and technology that may be difficult to develop entirely in-house. By ending the Bosch partnership early, Volkswagen is signaling that speed to market for advanced autonomous capabilities is now a higher priority than maintaining long-term collaborative agreements.

How to Understand Autonomous Driving Levels

• Level 2 (Partial Automation): The driver remains responsible for monitoring the road, but the vehicle can control steering, acceleration, and braking simultaneously in certain conditions. Hands-free driving is possible in specific traffic situations.
• Level 2+ (Enhanced Partial Automation): An intermediate step offering more advanced features than standard Level 2, such as improved highway driving assistance with better environmental awareness and decision-making capabilities.
• Level 3 (Conditional Automation): The vehicle assumes responsibility for driving under certain conditions, allowing drivers to take their eyes off the road while remaining ready to regain control if the system requests intervention.
• Level 4 (High Automation): The vehicle can perform all driving tasks under defined conditions without human intervention, though human override may still be available.

The decision to end the Automated Driving Alliance early demonstrates that Volkswagen believes its future competitive advantage lies in securing partnerships with companies that specialize in cutting-edge autonomous driving technology rather than developing everything through traditional collaborative arrangements. With the Level 2 platform ready for production and the ID.EVERY1 launch approaching in 2027, Volkswagen is positioning itself to move faster toward the higher levels of automation that will define the next generation of vehicles.