The German car giant Volkswagen is preparing to blow up the industry with one of the most drastic changes to its digital strategy in recent years. According to information in the German press, the concern is on the verge of ending its partnership with the technology giant Bosch within the framework of the Automated Driving Alliance project. Formed with great fanfare in 2022, this alliance was supposed to be the undisputed German answer to the software achievements of Tesla, Mercedes-Benz and the emerging Chinese brands in the field of autonomous driving.
The idea behind the joint work between Bosch and the concern's software unit - Cariad, looked promising on paper. The plan envisaged the creation of a unified platform for driver assistance systems that would power the entire group's portfolio: from affordable mass models with the Volkswagen emblem to the refined premium cars of Audi and Porsche. The goal was clear - the high-tech autopilot would step down from the throne of the luxury segment and become part of the everyday life of the mass driver.
However, reality turned out to be harsh, and the bet of 1.5 billion euros never brought the expected triumph. Publications by the Bild newspaper reveal that after the colossal investments, the results are disappointing, to say the least. Internal analyses within the concern show that the technology being developed lags significantly behind the competition - both in terms of the pace of innovation and market maturity. It is this fiasco that seems to be adding fuel to the fire and pushing the management towards a divorce.
For now, the official headquarters of Bosch and Cariad are keeping their cool. In a joint statement, they categorically refused to comment on market speculation and confidential negotiations, but still made the diplomatic clarification that they regularly revise their joint initiatives in light of current market realities and strategic goals.
Behind the scenes, however, the wind of change is already being felt. Serious indications are creeping in that Wolfsburg has given up on endless internal developments and intends to switch to direct purchase of ready-made software and hardware architectures “off the shelf“. The feverish search for a new technology partner is already in full swing, with the ultimate goal being the signing of a new contract by the end of September.
This move is a logical continuation of the large-scale program of belt-tightening and cost-cutting in the German concern. Pressed to the wall by China's aggressive expansion, dizzying budgets for digitalization and the urgent need for lightning-fast evolution, Volkswagen is forced to change tactics. Instead of finding hot water for years, the company is betting on pragmatism and ready-made external solutions to save the digital future of its brands.