Volkswagen, Bosch to collaborate on automated driving software
Iconic automobile brand, Volkswagen, has announced its plan for its software subsidiary, Cariad and autos, supplier Bosch, to consolidate a strategic partnership that will accelerate the development of software for automated driving for Volkswagen’s passenger vehicles use.
The software will enable so-called ‘Level 2’ autonomous driving – consisting of hands-free driving in cities, rural areas, and on the motorway – as well as a ‘Level 3′ system that takes over all driving functions
Level 2 driving would be installed in Volkswagen vehicles in 2023. parts could later be used in other automakers’ vehicles, the statement said, without specifying when this could happen. The partnership is the second major collaboration announced so far this year by the two companies, which last week said they were setting up a joint venture by the end of this year to equip battery cell factories with machinery.
Both Volkswagen and Bosch have bundled their software divisions internally into a single unit in an attempt to strengthen their offering in the face of competition-driven primarily by Tesla as well as companies such as Alphabet’s increasingly venturing into the autos sector.
Volkswagen aims for its software unit, Cariad, to supply 60% of software in Volkswagen vehicles by 2025, up from 10% when the unit was founded in 2020.
But talent competition is fierce, and the high upfront investment of developing software capabilities from scratch, at a time when many carmakers also need funds for electrification and battery development, led to the partnership option.
Bosch and Daimler announced plans in 2017 to build a joint ‘Robo-taxi’ automated driving fleet, reaching ‘Level 5’ automated driving that would give the car full control – but the partnership was canceled in 2021, months after Daimler’s CEO highlighted the high costs and risks involved.
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