Volkswagen (VW) ADAS and Autonomous Driving

Volkswagen (VW) is going through an important shift in how it develops advanced driver assistance systems (ADAS) and autonomous driving features. Recent changes in the car market, internal restructuring, and financial challenges have pushed VW to adjust its priorities:

• VW has decided to focus on improving current ADAS features at Levels 2 and 2+ (with partial hands-free driving) and gradually move toward Level 3.
• Spending on higher-level autonomy (Level 4) for widespread consumer use has been reduced or delayed.

This approach follows industry trends: the closure of Argo AI (co-funded by VW) in 2022 and General Motors’ recent decision to pause its Cruise robotaxi operations both show that full self-driving systems are more challenging and costly than many hoped.

Internally, VW has reorganized its software division called Cariad. The company plans to cut thousands of software jobs, partner more with outside tech firms, and simplify its technology goals. Many of these measures are driven by VW’s weaker performance in China—once VW’s biggest and most profitable market—where it is losing market share to local electric vehicle (EV) makers. In response, VW is even considering selling some German factories to Chinese automakers and forming new alliances, such as a recent partnership with Rivian.

In this report, we examine VW’s current ADAS status, future plans, technical roadmap, competition, and financial background. Overall, VW is moving toward more collaboration with partners and a more realistic plan. While it hopes to remain a major force in electric and software-driven mobility, it will need to execute these changes effectively and adapt to ever-changing market and regulatory conditions.