Volvo Officially Abandons LiDAR and Compensates Users
Volvo has officially abandoned LiDAR technology.
Development of advanced features related to the EX90 and ES90 has been halted, and users with installed systems will be compensated approximately €1,800, with hardware retained but not activated.
The event-driven automotive sensor strategy is shifting, with funds being withdrawn from LiDAR suppliers, benefiting pure vision and radar solutions while safety commitments are under pressure.
Source: Public Information
ABAB AI Insight
Volvo previously had a deep collaboration with Luminar and positioned LiDAR as a safety selling point for the EX90. The partnership ended after the supplier filed for bankruptcy protection at the end of 2025, and the hardware in installed vehicles cannot be physically removed.
The capital path indicates that automakers are reallocating resources from expensive LiDAR to existing computing platforms and multi-sensor fusion, motivated by cost control and avoiding supplier risks, specifically through market differentiation and compensation to appease customers.
This is similar to Tesla's insistence on pure vision while other automakers have adjusted their paths after temporarily adopting LiDAR; the current autonomous driving perception industry is converging from hardware stacking to software-defined solutions.
This essentially represents a technological substitution, driven by the high costs and supply chain vulnerabilities of LiDAR, making it difficult to scale, forcing safety brands to prioritize delivering feasible functions over unmet promises.
ABAB News · Cognitive Law
Supplier bankruptcy rewrites hardware commitments
Unfulfilled functions conclude with compensation
Safety brands also bow to lower costs