Volkswagen, Bosch Strike Partnership For Autonomous Driving Software: What You Need To Know

Volkswagen AG VWAGY and German engineering and technology company Bosch have forged a software alliance to take the legacy automaker toward Level 4 autonomy.

What Happened: Cariad, the automotive software unit of Volkswagen, and Bosch announced Tuesday an extensive automotive driving partnership.

The partnership will seek to make partially and highly automated driving suitable for volume production in order to cater to a broad swath of consumers. The alliance intends to equip Volkswagen branded vehicles with functions that will allow drivers to temporarily take their hands off the steering wheel, the companies said.

Specifically, these functions are Level 2 hands-free systems for urban, extra-urban and freeway driving, as well as Level 3 system that takes over all driving functions on the freeway.

The companies plan to install the first of these functions in 2023. More than 1,000 experts from both companies are to be deployed for the engineering work involved, according to Tuesday's announcement. The collaboration will also explore the possibility of joint development targets and timelines on the path the fully automated driving — SAE Level 4 functions.

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Why It's Important: Legacy automakers are going all out to transition quickly to EVs. To take on the incumbents and the nimble EV startups, improved technology is the key.

Volkswagen and Bosch have internally clubbed their software divisions for effectively competing with market leader Tesla, Inc. TSLA and other high-profile tech names that have ventured or are planning to foray into the sector.

Tesla aims to achieve Level 4 autonomy in 2022, when certain milestones in the development of its full-self driving are achieved, CEO Elon Musk said late last year.

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Photo courtesy of Bosch.