NEWS

Automakers’ Pragmatic Return to Autonomous Driving

Automakers are making a pragmatic return to autonomous driving, leveraging advanced sensor technology and strategic partnerships. This new approach aims for scalable and profitable deployment, contrasting with earlier ambitious setbacks.

By
LNGFRM Team
Published June 28, 2025
Illustration of a black stylized car at the base of a white triangle, surrounded by blue circuitry lines on a pink background.
Illustration by Addison Smith for LNGFRM

The rumble of an old guard re-entering the fray echoes across the automotive landscape.

After a stuttering start marked by ambitious plans, billions in investment, and ultimately, significant setbacks, traditional automakers are making a determined push back into the autonomous driving arena.

Volkswagen, a titan of the industrial age, stands at the forefront of this renewed offensive, unveiling its Level 4 (L4) autonomous ID.Buzz AD microbus in Hamburg – a symbolic declaration of intent in a market increasingly dominated by the nimble giants of Silicon Valley.

Volkswagen’s previous forays, including the much-hyped CARIAD software division and the ill-fated co-investment in Argo.ai, largely dissolved or were significantly delayed, causing internal strife and executive reshuffles.

This narrative of struggle is not unique to Wolfsburg; Ford and GM’s Cruise subsidiary have faced similar challenges, underscoring the immense difficulty of translating cutting-edge tech into scalable, profitable mobility solutions.

But this time, Volkswagen is approaching the challenge with a noticeable shift in strategy.

Instead of trying to be everything to everyone, Volkswagen’s L4 ID.Buzz AD initiative embraces a partnership model.

They aim to supply the vehicle, its advanced sensor suite, compute power, and autonomous driving software to established transportation and mobility companies like Uber and Moia.

The first batch of 500 vehicles is slated for Uber’s ride-hailing trials in Los Angeles by 2026, with fully autonomous operations anticipated for 2027.

This pragmatic approach leverages existing platforms and customer bases, a stark contrast to the tech giants who often seek to build entirely new ecosystems from scratch.

Furthermore, Volkswagen’s distinct advantage lies in its manufacturing prowess and supply chain, allowing for lower hardware costs by utilizing components also found in its higher-volume L2 and L3 passenger cars.

Perhaps, as the adage goes, sometimes it’s perfectly fine to arrive late to the party, especially when the crucial enabling technologies have matured significantly.

Indeed, the underlying technological bedrock of autonomous driving – particularly 3D imaging sensors like LiDAR and imaging radar – has undergone a dramatic evolution.

These aren’t just incremental improvements; they represent a leap in cost-efficiency, performance, and form factor, making widespread deployment far more feasible.

At the heart of this sensor revolution are companies like Valeo, a venerable Tier 1 supplier whose SCALA series LiDAR is already integral to Mercedes’ L3 Drive Pilot system.

The upcoming SCALA 3 promises even greater range and resolution, poised to elevate L3 capabilities and finding its way into Stellantis vehicles and three other global OEMs.

Valeo’s deep integration within the automotive supply chain and its collaborative spirit, exemplified by its long-standing partnership with Mobileye, underscore the complex ecosystem necessary for mass autonomy.

Innoviz Technologies, another pivotal player, has secured the coveted LiDAR supplier role for Volkswagen’s ID.Buzz microbus, deploying an impressive nine InnovizTwo LiDARs per vehicle.

Their technology, featuring robust resilience to optical obscurations like mud and rain – a non-negotiable for L4 vehicles operating without a safety driver – highlights the critical demands of true autonomy.

Innoviz’s strategic move to become a Tier 1 supplier for Audi, coupled with its partnership with automotive-certified manufacturer Fabrinet, demonstrates a keen understanding of the industrial scale and stringent quality requirements of the automotive sector.

This isn’t just about cutting-edge tech; it’s about reliable, mass-producible excellence.

Yet, perhaps the most compelling narrative in the sensor space belongs to Mobileye.

A Nasdaq-listed powerhouse, Mobileye has cemented its position as a leading pure-play autonomy provider, with its technology embedded in over 190 million cars globally.

While they offer a spectrum of solutions from L2+ SuperVision to L3 Chauffeur and L4 Drive systems, their recent decision to discontinue proprietary FMCW LiDAR development speaks volumes.

Mobileye is doubling down on the potent combination of advanced computer vision (EyeQ6 chips) and their proprietary imaging radar.

This Mobileye Imaging Radar, drawing on intellectual property from its tenure within Intel, is hailed as a game-changer.

Delivering 3D point cloud and axial velocity information akin to LiDAR but at a fraction of the cost (around $100) and with unparalleled performance in adverse weather, it presents a compelling alternative.

As Dan Galves, Mobileye’s Chief Communications Officer, aptly puts it, this radar is designed to be a “key technology pillar to enable high-precision hands-off, eyes-off driving” at scale, providing a critical, independent perception layer that enhances safety and cost-efficiency.

Its ability to detect small objects at 130 meters and larger ones at 300 meters, even in challenging conditions, is a testament to its disruptive potential.

The return of traditional automotive OEMs to the autonomous driving fold is more than just a technological race; it’s a battle of business models.

For OEMs, L3 autonomy can be a lucrative feature, sold by the millions in consumer vehicles, generating immediate revenues and profits.

Leveraging this into L4 ride-hailing, however, pitches them directly against tech giants who view autonomous driving as a strategic “bet” within their already vast, profitable empires.

The challenge for automakers is to extract meaningful revenue and profit to satisfy shareholders, unlike tech giants who can afford to play a longer, more speculative game.

The technology is no longer the sole bottleneck.

The sophisticated interplay of LiDAR, imaging radar, and advanced computer vision, orchestrated by companies like Mobileye, Innoviz, and Valeo, is steadily bringing true autonomy within reach.

The real war, then, is not just about who builds the best self-driving car, but who devises the most sustainable and profitable path to deploy it.

As this complex ecosystem of innovation, partnership, and strategic maneuvering continues to evolve, the coming years promise to be a fascinating chapter in the history of mobility.

Author

  • LNGFRM Team

    Frank DiBernardo handles LNGFRM's Foodie and Miscellaneous writing tasks. He's always getting ideas from users, so don't be afraid to send an email to the editor.

Daily Newsletter
Subscribe to our Newletter!
You May Also Like

The Hidden Records of Tesla Autopilot Fatalities

A fatal collision in Ohio reveals how Tesla uses regulatory redactions to obscure the performance of its driver-assist systems in real-world crashes.

By LNGFRM Team
Published September 3, 2026

Karthick Ravichandran on Predictive Automotive Risk Management

Karthick Ravichandran’s work industrializing electric vehicle architectures is built on a conviction that quality is a design responsibility, not a manufacturing one—and that the failure modes introduced by high-voltage batteries, thermal runaway propagation, and HV insulation breakdown require electrochemists and functional safety engineers in the DFMEA room from the start, not inspectors at the end of the line. His closed-loop methodology ensures that every warranty claim and field anomaly feeds back into the next program’s risk library, so future platforms start from known failure data rather than engineering judgment alone.

By Mike Malone
Published July 27, 2026
© 2026 LNGFRM. All rights reserved.