en.Wedoany.com Reported - Volkswagen plans to terminate its Automated Driving Alliance (ADA) with Bosch. According to a report by *Bild am Sonntag* citing internal sources, insufficient progress and cost-saving pressures are the main reasons for the termination. The project has invested approximately €1.5 billion, but internal assessments deem the technology uncompetitive, particularly at the Level 2++ level, which allows hands-free driving in urban traffic. Volkswagen believes it lags significantly behind its competitors.

A spokesperson for Volkswagen's software subsidiary Cariad told the newspaper that Volkswagen regularly reviews its development partnerships and continuously assesses whether they align with strategic goals. Especially in the field of advanced driver assistance systems, the market and technology may have evolved in directions different from those initially anticipated at the start of the collaboration. Volkswagen declined to comment on confidential discussions. To reduce costs and close the gap more quickly, Volkswagen plans to procure hardware and software from new partners rather than developing them in-house.

The contract for the collaboration runs until the end of September. The alliance with Bosch could be finally terminated as early as today. The partnership was launched as a major project in early 2022, aiming to catch up with competitors such as Tesla and Mercedes-Benz in the field of autonomous driving. The two companies had planned to have over 1,000 experts jointly develop a common software platform for driver assistance systems, which would later be offered to other manufacturers.