Volkswagen's Bold Bet on Driver Assistance

In the ever-evolving landscape of automotive technology, Volkswagen Group has made a strategic move that could redefine the future of driver assistance systems. By partnering with Valeo and Mobileye, Volkswagen is aiming to enhance the safety and comfort of its upcoming MQB-based vehicle portfolio. This collaboration is not just about technological advancement; it's about Volkswagen's commitment to transforming the driving experience while keeping costs competitive.

The partnership focuses on upgrading advanced driver assistance systems (ADAS) to Level 2+ ('enhanced partially automated driving'). This means hands-free driving on approved highways, traffic jam assist, hazard detection, parking assist, driver monitoring, and 360-degree emergency assist. 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 software 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.

The financial implications of this partnership are significant. For Volkswagen, it means streamlined procurement, reduced complexity, and improved efficiency. This could lead to cost savings and competitive pricing for customers, while also enhancing the technology and performance of their vehicles. As Dirk Große-Loheide, Member of the Board of Management of the Volkswagen Brand responsible for Procurement, stated, "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."

For Valeo, the partnership provides an opportunity to showcase its technological leadership in driving assistance systems. Valeo will provide high-performance ECUs, sensors, and software parking solutions, which will be integrated into Volkswagen's vehicles. This could lead to increased sales and revenue for Valeo, as well as enhanced brand recognition and market position. As Marc Vrecko, CEO of Valeo BRAIN Division, explained, "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."

For Mobileye, the partnership with Volkswagen Group represents a significant technological advancement in how ADAS systems are implemented in mass-market vehicles. Mobileye will contribute its Surround ADAS™ platform, including the EyeQ™6 High processor and mapping technologies, which will be integrated into a single system with Valeo's components. This could lead to increased sales and revenue for Mobileye, as well as enhanced market position and brand recognition. As Prof. Amnon Shashua, president and CEO of Mobileye, stated, "Working with Valeo and Volkswagen Group, this software and hardware integrated approach puts AI innovations to work in the real world. 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."

The partnership between Volkswagen Group, Valeo, and Mobileye has the potential to enhance their market positions and revenue streams in the coming years. By integrating advanced driver assistance systems into Volkswagen's vehicles, all three companies can benefit from increased sales, cost savings, and enhanced brand recognition. This could lead to a more competitive and innovative automotive industry, with advanced driver assistance systems becoming a standard feature in mass-market vehicles.

In conclusion, Volkswagen's bold bet on driver assistance systems is a strategic move that aligns with current market trends and offers significant competitive advantages. By partnering with Valeo and Mobileye, Volkswagen is not only enhancing the safety and comfort of its vehicles but also positioning itself as a leader in the automotive industry. This partnership is a testament to Volkswagen's commitment to innovation and its dedication to providing high-quality solutions for its customers.