Volkswagen plans to end automated driving tie-up with Bosch, Bild reports

June 28, 2026 3:17 PM EDT

FILE PHOTO: The Volkswagen logo is displayed on a vehicle during a media tour at Volkswagen Commercial Vehicles (Volkswagen Nutzfahrzeuge) in Hanover, Germany, March 4, 2026. REUTERS/Fabian Bimmer/File Photo

June 28 (Reuters) - German carmaker ‌Volkswagen plans ​to end ​its automated driving tie-up with auto supplier Bosch as part of a wider push to cut costs ‌and boost competitiveness, Germany's Bild newspaper reported on Sunday, citing ⁠multiple sources.

The Bosch partnership was launched in 2022 with Volkswagen's software unit ‌Cariad to develop software for ‌driver assistance and autonomous driving across Volkswagen's brands.

A spokesperson for Volkswagen directed inquiries to Cariad.

Bosch and Cariad issued a joint statement ​saying they did not comment on market rumours. The statement noted the two had worked together closely for years and ⁠wanted to bring automated driving systems to a mass market worldwide.

"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," it said, noting they did not comment on confidential discussions with partners.

Citing internal sources, Bild said ⁠the project had not met expectations, after around €1.5 billion ($1.71 billion) had been invested in it. Internal assessments found the technology was not yet competitive, ⁠it added.

The Bosch tie-up is scheduled to be ended in accordance with the ​terms of the contract and a final termination would not occur before Monday, the newspaper said.

Volkswagen plans to source hardware and software for such ‌systems from a new partner, Bild said. A replacement is currently being chosen, with a contract planned ‌by September.

The Bild story followed reports on Friday that the embattled ⁠carmaking giant is considering shutting ‌four German factories and ​ramping up job cuts to as many as 100,000.

($1 = €0.8785)

(Reporting by Dave Graham and Rachel More; Editing by ‌Chris Reese)



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