Volkswagen AG is preparing to end its automated driving partnership with Robert Bosch GmbH, according to Bild — a move that would write off roughly €1.5 billion in joint development spending and mark the most visible casualty yet of VW’s accelerating restructuring.
The partnership between Bosch and VW’s software unit Cariad launched in 2022 to build scalable driver-assistance and autonomous driving software across VW’s brands. The technology failed to match competing systems despite the multi-year investment, Bild reported.
Bosch and Cariad acknowledged in a joint statement that they “regularly review” their development partnership, but neither confirmed nor denied the split. VW is already searching for a replacement partner, with a new contract targeted for September.
The Bosch exit is part of a broader unraveling. VW is simultaneously weighing cuts of up to 100,000 jobs and the closure of four German factories, with its supervisory board scheduled to formally discuss the plans at a July 9 meeting.
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Read: Volkswagen Plans to Cut 100,000 Jobs and Close Four German Plants
In the first quarter of 2026, VW posted revenue of €75.7 billion — down 2% — and net profit of €1.56 billion, a 28% year-on-year drop.
“The cost savings planned so far are not enough,” CFO Arno Antlitz said. US tariffs are costing the group an estimated €4 billion annually. In China — VW’s single largest market — first-quarter sales fell 20% as BYD and other domestic automakers push into European markets as well. VW, which held the top spot in China for years, fell to third in the market in 2025. Its shares were trading at 16-year lows on Friday.
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IG Metall and VW’s General Works Council vowed to do “everything in our power to prevent” the cuts. The state of Lower Saxony, VW’s second-largest shareholder, is also expected to push back at the July 9 board meeting. Any restructuring requires approval through VW’s co-determination governance structure, which gives workers’ representatives equal representation on the supervisory board.
