Automated driving: Volkswagen Group intensifies collaboration with Mobileye

Rhea-AI Summary

Volkswagen and Mobileye collaborate to bring new automated driving functions to series production. Audi, Bentley, Lamborghini, and Porsche to adopt Mobileye technologies for premium driving features. Volkswagen Commercial Vehicles to receive autonomous driving technology from Mobileye.

Insights

Automotive Industry Analyst

The strategic collaboration between Volkswagen and Mobileye marks a significant step in the automotive industry's shift towards automation. By integrating Mobileye's technologies into their premium brand vehicles, Volkswagen is positioning itself as a leader in the high-end automated driving space. This move aligns with the broader industry trend of incorporating advanced driver assistance systems (ADAS) and autonomous driving features as differentiators in the luxury vehicle market.

The integration of advanced assistance systems for highway and urban driving in Volkswagen's premium brands could potentially enhance the brand's appeal and customer loyalty. However, the success of this initiative will largely depend on the reliability and user acceptance of these technologies. It is also important to monitor how this shift may affect Volkswagen's production costs and pricing strategy, as well as its impact on market share in the luxury segment.

Technology and Innovation Analyst

Mobileye's SuperVision and Chauffeur platforms represent cutting-edge technology in the field of automated driving. Their application in Volkswagen's premium models could set a new benchmark for ADAS capabilities. The technology's ability to perform tasks like automated overtaking and stopping at traffic signals indicates a move towards Level 3 autonomy, where the vehicle can handle certain driving tasks but still requires driver oversight.

Investors should note that the adoption of such technology could lead to a competitive advantage in terms of innovation. However, this also brings challenges, including regulatory hurdles, safety concerns and the need for robust cybersecurity measures. As the technology progresses, continuous investment in R&D will be essential to maintain a technological edge and meet evolving consumer expectations and regulatory standards.

Financial Analyst

From a financial perspective, the collaboration between Volkswagen and Mobileye could have significant implications for both companies' revenue streams. For Mobileye, the partnership with a major automotive manufacturer like Volkswagen could lead to an increase in volume sales and a stronger market position. For Volkswagen, offering new automated driving functions in its luxury models may justify a premium pricing strategy and potentially increase profit margins.

However, investors should consider the substantial R&D and capital expenditures associated with developing and integrating these advanced technologies. The return on investment will depend on the consumer adoption rate and the scalability of the technology across different models and market segments. It will be important to monitor the consumer response to these new offerings and the overall performance of the premium vehicle segment in the coming years.

• Volkswagen and Mobileye bring new automated driving functions to series production
• Mobileye provides technologies based on the Mobileye SuperVision™ and Mobileye Chauffeur™ platforms
• Audi, Bentley, Lamborghini and Porsche will use these series developments to rapidly bring new, premium-oriented driving functions to their model portfolios
• Mobileye set to supply further technology components for autonomous driving to Volkswagen Commercial Vehicles

WOLFSBURG, Germany & JERUSALEM--(BUSINESS WIRE)-- The Volkswagen Group is welcoming further strategic collaboration and significantly accelerating its development efforts in the field of automated and autonomous driving. Now, Volkswagen is intensifying its partnership with Mobileye in the domain of automated driving. Together, the two companies will bring new automated driving functions to series production. Mobileye is to provide technologies for partially and highly automated driving based on its Mobileye SuperVision and Mobileye Chauffeur platforms. In future, the Volkswagen Group’s Audi, Bentley, Lamborghini and Porsche brands will use these technologies to rapidly introduce new premium-oriented driving functions to their model portfolios across powertrain types. These include advanced assistance systems for highway and urban driving, such as automated overtaking on multilane highways in permitted areas and conditions, as well as automatic stopping at red lights and stop signs, and support in intersections and roundabouts. In addition, Mobileye is set to supply further technology components for automated driving to Volkswagen Commercial Vehicles. In the long term, the Volkswagen Group aims to rely on its own complete in-house system: Partnerships with Bosch and Qualcomm, as well as with Horizon Robotics in China, will be continued with a focus. All driver assistance systems are to be based on the software architectures developed by Volkswagen’s Cariad company.

Volkswagen Group and Mobileye collaborate on automated driving. (Graphic: Business Wire)

“Our goal is to offer our customers throughout the world outstanding products with cutting-edge technology,” says Oliver Blume, CEO of the Volkswagen Group and Porsche AG. "New automated driving functions will significantly boost convenience and safety. These functions, which will be tailored to our brands and products, will make every trip a personal, individual experience. In Mobileye, we have an additional first-class partner to shape this automotive future together.”

The Volkswagen Group and Mobileye have been collaborating on advanced driver assistance systems for some time. In the future, Mobileye is set to also provide technologies for driving functions with enhanced Level 2 capabilities ('partially automated driving') within the Volkswagen Group. When such functions will be available, and subject to its operational design domain, drivers will be allowed to take their hands off the steering wheel but must remain attentive to the traffic and ready to intervene at any time. In addition, Volkswagen is working with Mobileye on Level 3 functions ('highly automated driving'). At this level, the vehicle will be able to temporarily take over driving tasks in specified areas; drivers are not required to monitor the system continuously. Volkswagen and Mobileye are jointly developing these technologies into cross-brand systems.

In addition, Mobileye will also offer certain production-ready functions for the new E3 1.2 premium-oriented software architecture. This new architecture is managed by Cariad and will be gradually implemented within the group by Audi, Bentley, Lamborghini, and Porsche. As part of their product strategy, the brands decide on the specific deployment of the systems and tailor them to a brand-specific driving experience.

Furthermore, the Volkswagen Commercial Vehicles brand is set to be supplied by Mobileye with software and hardware to achieve Level 4 ("fully automated driving"). Volkswagen ADMT, a Volkswagen Group subsidiary, will implement these components in fully electric development platforms based on the Volkswagen ID. Buzz. The goal of Volkswagen ADMT is to bring self-driving ID. Buzz vehicles to series production for mobility and transportation services.

“We are proud to work closely with Volkswagen Group to make the future of driving safer, more automated and more rewarding,“ says Prof. Amnon Shashua, President and CEO of Mobileye. “Through these programs, we see Volkswagen Group leading the industry in putting AI-powered advanced driver assistance technology in the hands of consumers globally and developing new services with autonomous vehicles.“

Volkswagen Group sharpens its development strategy for driver assistance systems

Volkswagen is further clarifying the division of development tasks for driver assistance systems between in-house innovation and collaboration for its new E³ 1.2 and E³ 2.0 software architectures. This will streamline processes and reduce complexity. With strategic partners such as Mobileye, Volkswagen Group is accelerating the rapid delivery of the premium-oriented E³ 1.2 architecture, while, in the long term, the Group will rely on its own complete in-house (‘stack’) for automated driving across all brands.

For the future E³ 2.0 architecture, the Volkswagen Group plans to forge ahead and consolidate its resources and development responsibilities within Cariad, its software company. Together with Bosch, Cariad aims to develop the Group's proprietary complete system. This system will be integrated into the future all-electric, fully digital, and highly scalable mechatronics Group platform, the Scalable Systems Platform (SSP)

“We are sharpening our development strategy for driver assistance systems at the same time as heightening our customer focus. We are concentrating on fast, reliable delivery,” says Michael Steiner, Head of Research and Development of the Volkswagen Group and Member of the Executive Board, Research and Development of Porsche AG.

About the Volkswagen Group

The Volkswagen Group is one of the world's leading car makers, headquartered in Wolfsburg, Germany. It operates globally, with 114 production facilities in 19 European countries and 10 countries in the Americas, Asia and Africa. With around 684,000 employees worldwide. The Group’s vehicles are sold in over 150 countries. With an unrivalled portfolio of strong global brands, leading technologies at scale, innovative ideas to tap into future profit pools and an entrepreneurial leadership team, the Volkswagen Group is committed to shaping the future of mobility through investments in electric and autonomous driving vehicles, digitalization and sustainability. In 2023, the total number of vehicles delivered to customers by the Group globally was 9.2 million (2022: 8.3 million). Group sales revenue in 2023 totaled EUR 322.3 billion (2022: EUR 279.1 billion). The operating result before special items in 2023 amounted to EUR 22.6 billion (2022: EUR 22.5 billion).

About Mobileye

Mobileye (Nasdaq: MBLY) leads the evolution of mobility with its autonomous driving and driver-assistance technologies, based on world-renowned expertise in artificial intelligence, computer vision, mapping, and integrated hardware and software. Since its founding in 1999, Mobileye has enabled the wide adoption of advanced driver-assistance systems while pioneering groundbreaking technologies such as REM™ crowdsourced mapping, True Redundancy™ sensing, Responsibility-Sensitive Safety™ (RSS™) driving policy and Driving Experience Platform (DXP). These technologies support a product portfolio structured for scale and designed to unlock the full potential of mobility, offering a range of solutions from premium ADAS to autonomous vehicles. By the end of 2023, about 170 million vehicles worldwide had been equipped with Mobileye technology. In 2022, Mobileye listed as an independent company separate from Intel (Nasdaq: INTC), which retains majority ownership. For more information, visit https://www.mobileye.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240320384432/en/

Volkswagen Group

Pietro Zollino

Deputy Head of Group Communications,

Head of Corporate Communications

+49 (0)172-8371-431

pietro.zollino@volkswagen.de

Jonas Kulawik

Corporate Communications

Spokesperson Product & Technology, Digitalization

+49 (0)152-2945-2616

jonas.alexander.kulawik@volkswagen.de

Mobileye

Justin Hyde

Director, Corporate Communications

+1 (202) 656-6749

justin.hyde@mobileye.com

Source: Mobileye

FAQ

What collaboration has been announced between Volkswagen and Mobileye?

Volkswagen and Mobileye are partnering to bring new automated driving functions to series production.

Which brands under the Volkswagen Group will use Mobileye technologies for driving functions?

Audi, Bentley, Lamborghini, and Porsche will adopt Mobileye technologies for premium-oriented driving features.

What technology components will Mobileye supply to Volkswagen Commercial Vehicles?

Mobileye will provide further technology components for autonomous driving to Volkswagen Commercial Vehicles.