Volkswagen plans to end its automated-driving partnership with Bosch, according to a report, as the German carmaker seeks to cut costs and improve competitiveness.

The partnership between Bosch, a German auto supplier, and Cariad, Volkswagen’s software unit, began in 2022 to develop software for driver-assistance and autonomous driving systems across Volkswagen brands.

The report said internal assessments found the technology was not yet competitive after about 1.5 billion euros (US$1.71 billion) had been invested.

Volkswagen referred questions to Cariad. Bosch and Cariad said in a joint statement they do not comment on market rumours and regularly review their development partnership.

The report also said Volkswagen plans to source hardware and software for these systems from a new partner. It said Volkswagen is choosing a replacement and plans to sign a contract by September.

The report came after reports on June 26 that Volkswagen was considering shutting four German factories and increasing planned job cuts to as many as 100,000.

🔗 Source: Reuters