Volkswagen’s software unit Cariad and Bosch have concluded their joint autonomous driving partnership following completion of an AI-based Level 2 driver-assistance software stack.
The two companies formed the Automated Driving Alliance in 2022 to create driver-assistance and autonomous-driving software for Volkswagen brands.
Their work focused on Level 2 systems, which require drivers to remain attentive and watch the road, while the most advanced versions can permit hands-free driving in some traffic conditions.
Following the conclusion of the partnership, both companies will keep access to a shared portfolio of intellectual property and data produced during the alliance.
Each company will incorporate the outcomes into its own series-production offerings and continue developing the technology independently.
German newspaper Bild first reported the development late last month.
The change comes as Volkswagen steps up cost-cutting measures amid tariffs, subdued demand and increasing competition from Chinese manufacturers.
Cariad CEO Peter Bosch said: “The results of our collaboration with Bosch are an important milestone for Cariad.
“Together, we have developed high-performance driver assistance technologies up to Level 2. These provide a strong foundation for optimal customer features and cost-effectiveness in our vehicles.”
The AI-based software stack developed through the alliance can be used across vehicle segments, from compact to premium models, and on both electric and combustion-engine platforms.
Both companies will continue to have access to the technology for series-production vehicle projects and for further independent development.
Volkswagen's ID.EVERY1 is due to enter series production in 2027 using technology developed through the alliance.
The system was tested with development vehicles across Europe, Japan and North America.
Bosch and Cariad also installed the technology in fleets used by logistics providers, leasing companies and service vehicles in daily operation worldwide, reaching as many as 1,500 vehicles globally, to create a data foundation for training the algorithms, including rare “corner case” scenarios.
Bosch Mobility chairman and management board deputy chairman Markus Heyn added: “Together, we have developed high-performance and competitive technologies for assisted and automated driving up to Level 2, thus achieving a technological milestone. This enables both hands-on and hands-free driving in various forms – tailored to different markets worldwide.”


