Volkswagen Group cooperates with Valeo and Mobileye to enhance driver assistance in future MQB vehicles

Rhea-AI Summary

Volkswagen Group has announced a strategic collaboration with Valeo and Mobileye (MBLY) to enhance advanced driver assistance systems up to Level 2+ in its upcoming MQB-based vehicle portfolio. The partnership aims to integrate high-quality hardware and software while reducing complexity and streamlining procurement.

The new system will feature a 360-degree ring of multiple cameras and radars, enabling hands-free driving on approved roads, smart parking, and improved safety features. Valeo will provide ECUs, sensors, and parking solutions, while Mobileye contributes its Surround ADAS™ platform with EyeQ™6 High processor and mapping technologies.

The collaboration consolidates multiple ECUs into a centralized unit, allowing for over-the-air updates and improved system performance. Volkswagen Group reported 9.0 million vehicles delivered globally in 2024 (down from 9.2 million in 2023), with sales revenue of EUR 324.7 billion and operating result of EUR 19.1 billion in 2024 (compared to EUR 22.5 billion in 2023).

Positive

• Strategic partnership reduces complexity and streamlines procurement across multiple VW brands
• Integration of advanced driver assistance features enhances product offering
• Centralized ECU system enables over-the-air updates and improved efficiency
• Slight increase in sales revenue to EUR 324.7B in 2024 from EUR 322.3B in 2023

Negative

• Vehicle deliveries declined to 9.0M in 2024 from 9.2M in 2023
• Operating result decreased to EUR 19.1B in 2024 from EUR 22.5B in 2023

Insights

Automotive Technology Analyst

This Volkswagen-Mobileye-Valeo partnership represents a significant technological advancement in how ADAS systems are implemented in mass-market vehicles. The integration combines Mobileye's Surround ADAS platform and EyeQ6 High processor with Valeo's sensors into a unified architecture that replaces multiple separate ECUs with a centralized system.

What's particularly notable is the deployment on Volkswagen's MQB platform—their modular architecture used across multiple brands and high-volume vehicles. This means Mobileye's technology could potentially reach millions of vehicles annually, as VW Group delivered 9.0 million vehicles globally in 2024.

The system's capabilities extending to Level 2+ represent a meaningful upgrade from basic ADAS to more sophisticated features including hands-free highway driving, traffic jam assist, and 360-degree emergency assist. This consolidated approach aligns with the industry's shift toward software-defined vehicles while reducing hardware complexity.

For Mobileye, securing placement of their latest EyeQ6 processor in Volkswagen's volume platform validates their competitive position despite intensifying competition from companies like Nvidia and Qualcomm. The over-the-air update capabilities mentioned suggest potential for ongoing revenue streams beyond initial hardware sales.

While implementation timeframe is vague ("launching in the next few years"), this partnership secures Mobileye's position in the evolving ADAS landscape where computational centralization and software-defined capabilities are becoming increasingly important differentiators.

Financial Analyst

This partnership strengthens Mobileye's market position and future revenue outlook. By securing Volkswagen Group as a customer for their Surround ADAS platform and EyeQ6 High processor, Mobileye gains access to VW's MQB platform—the foundation for high-volume vehicle production across multiple VW Group brands.

The financial impact will materialize gradually as these systems enter production "in the next few years." While the announcement lacks specific contract value details, the potential scale is substantial given VW Group's 9.0 million global vehicle deliveries in 2024. Even capturing a fraction of this volume would represent significant business.

The centralized system approach mentioned—replacing multiple ECUs with a single unit—could potentially increase Mobileye's content value per vehicle compared to more basic ADAS implementations. The inclusion of over-the-air update capabilities also suggests possibilities for recurring software revenue beyond initial hardware sales.

This deal enhances Mobileye's competitive positioning in the increasingly crowded ADAS market. As automakers standardize next-generation driver assistance across volume models to meet both consumer expectations and tightening regulatory requirements, securing platform-level deals with major OEMs becomes increasingly valuable.

While immediate financial impact will be minimal until production begins, this agreement provides increased visibility into Mobileye's future revenue pipeline and reinforces their technological leadership in a core market segment that continues to grow as advanced driver assistance features proliferate across vehicle segments.

• The collaboration aims to enhance safety and driving comfort in Volkswagen’s upcoming MQB-based vehicle portfolio.
• By reducing complexity and streamlining procurement, it integrates high-quality hardware and software, supporting Volkswagen Group’s transformation.

WOLFSBURG, Germany & JERUSALEM & PARIS--(BUSINESS WIRE)-- Volkswagen Group is working with Valeo and Mobileye to upgrade the advanced driver assistance systems up to Level 2+ (“enhanced partially automated driving”) in its upcoming vehicle portfolio based on the MQB platform. Launching in the next few years, this cooperation will improve safety and driving comfort in high-volume vehicles, addressing both customer expectations and regulatory requirements.

Volkswagen Group, Valeo and Mobileye collaborate on surround-sensing advanced driver assist.

“This cooperation supports us on our road to transformation: by sourcing hardware and software together, we streamline procurement, reduce complexity, and improve efficiency. It also empowers our performance program by enhancing technology while keeping costs competitive, ensuring high-quality solutions for our customers,” says Dirk Große-Loheide, Member of the Board of Management of the Volkswagen Brand responsible for Procurement and Member of Volkswagen AG’s Extended Executive Committee.

Beyond hands-free driving in specific conditions on approved highway sections, the system will offer features like traffic jam assist, hazard detection, parking assist, driver monitoring, and 360-degree emergency assist, with future-ready capabilities such as augmented reality displays.

With this cooperation and streamlined procurement across multiple brands, Volkswagen Group is advancing vehicle safety and automation while ensuring efficient development and cost-effective solutions for its customers.

Improved assistance systems

The new system features a 360-degree ring of multiple cameras and radars, along with software-defined capabilities, enabling hands-free driving on approved roads, smart parking, and improved occupant and pedestrian safety.

Valeo provides high-performance ECUs, sensors, and parking solutions, while Mobileye contributes its Surround ADAS™ platform, including the EyeQ™6 High processor and mapping technologies. For the first time, these elements are integrated into a single system, replacing multiple ECUs with a centralized unit. This improves efficiency, system performance, and allows for over-the-air updates to meet evolving safety standards.

“At Valeo, we are committed to advancing innovation in driver assistance technology. We are excited to embark on a new journey and to offer to Volkswagen, together with Mobileye, this complete solution of affordable, state-of-the-art, advanced driving features for their end-users,” explains Marc Vrecko, CEO of Valeo Brain Division.

“Working with Valeo and Volkswagen Group, this software and hardware integrated approach puts AI innovations to work in the real world,” said Prof. Amnon Shashua, president and CEO of Mobileye. “By improving efficiency and costs while upgrading capabilities for safety and comfort in driver assist, this system points the way to a new class of driving technology.”

About the Volkswagen Group:

The Volkswagen Group is one of the world's leading car makers, headquartered in Wolfsburg, Germany. It operates globally, with 115 production facilities in 17 European countries and 10 countries in the Americas, Asia and Africa. With around 680,000 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 2024, the total number of vehicles delivered to customers by the Group globally was 9.0 million (2023: 9.2 million). Group sales revenue in 2024 totaled EUR 324.7 billion (2023: EUR 322.3 billion). The operating result in 2024 amounted to EUR 19.1 billion (2023: EUR 22.5 billion).

About Mobileye:

Mobileye (Nasdaq: MBLY) leads the mobility revolution with our autonomous driving and driver-assistance technologies, harnessing world-renowned expertise in artificial intelligence, computer vision, mapping and integrated software and hardware. Since our founding in 1999, Mobileye has enabled the wide adoption of advanced driver-assistance systems that bolster driving safety, while pioneering such groundbreaking technologies as REM™ crowdsourced mapping, True Redundancy™ sensing, and Responsibility Sensitive Safety™ (RSS). These technologies drive the ADAS and AV fields towards the future of mobility – enabling self-driving vehicles and mobility solutions at scale, and powering industry-leading advanced driver-assistance systems. Through 2024, more than 200 million vehicles worldwide have been built with Mobileye’s EyeQ technology inside. Since 2022, Mobileye has been listed independently from Intel (Nasdaq: INTC), which retains majority ownership. For more information, visit https://www.mobileye.com.

“Mobileye,” the Mobileye logo and Mobileye product names are registered trademarks of Mobileye Global. All other marks are the property of their respective owners.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250325025714/en/

Media Contact:

Volkswagen:

Nicolai Laude

Corporate Communications

Head of Sustainability and Integrity Communications

+49 (0) 152 2912 2517

nicolai.laude@volkswagen.de

Mobileye:

Justin Hyde

Corporate Communication

Justin.hyde@mobileye.com

Source: Mobileye

FAQ

What new features will Volkswagen's MQB vehicles get through the Mobileye (MBLY) partnership?

The vehicles will receive Level 2+ driver assistance features including hands-free driving on approved highways, traffic jam assist, hazard detection, parking assist, driver monitoring, and 360-degree emergency assist.

How will the Mobileye (MBLY) and Valeo collaboration improve Volkswagen's system efficiency?

The collaboration integrates multiple ECUs into a single centralized unit, enabling better system performance, over-the-air updates, and streamlined procurement across multiple brands.

What technology will Mobileye (MBLY) provide to Volkswagen in this partnership?

Mobileye will contribute its Surround ADAS™ platform, including the EyeQ™6 High processor and mapping technologies.

When will Volkswagen implement the new Mobileye (MBLY) driver assistance systems?

The enhanced driver assistance systems will be launched in Volkswagen's upcoming MQB-based vehicle portfolio in the next few years.