Volvo Stops Using LiDAR As Supplier Are Pissed Off

For years, Volvo has been considered one of the biggest supporters of LiDAR technology. More recently, it was announced that Swedish models will be among the first to base autonomous driving on laser sensors. And as a partner for those systems, they found the American company Luminar, then a rising star. But that “marriage” no longer exists today, and “divorce” is quite stormy.

Volvo has confirmed that in the future, the ES90 and EX90 models will no longer offer the LiDAR system, even at an additional cost. It’s a complete turnaround from Volvo’s initial strategy. This technology was first standard on their vehicles, then an option, and now it has completely disappeared from the offer. The sensor, located in a characteristic protrusion on the roof, was supposed to be a key step towards autonomous driving, but its era ended suddenly.

What has changed? Officially, Volvo cites “tuning to customer demand” and “limited hardware availability.” But the American branch of the brand was much more explicit and claimed that the decision was made due to “Luminar’s non-fulfillment of contractual obligations.” In other words, Volvo felt that their partner could not deliver what they promised, and the risk to the supply chain was no longer worth tolerating.

Despite the removal of LiDAR, Volvo insists the models will still meet the brand’s top safety standards thanks to powerful computer platforms and advanced cameras and radars. What is being kept quiet for now is whether it will limit driver-assistance features, especially those that rely on 3D mapping of the space in front of the vehicle.

Luminar, as expected, does not remain silent throughout the story. Back in October, after Volvo switched LiDAR from standard equipment to an extra charge, the company filed a claim for damages, claiming that it had suffered major financial losses. And when the contract was completely terminated on November 14, Luminar said that it was a blow that could “dramatically affect the long-term viability of the business,” since Volvo was its largest individual customer. While Volvo tries to rationalize its offer and reduce the complexity of its supply chain, Luminar faces the question of its own future.

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