Volkswagen Hands Self-Driving Software Reins to Wayve as Model Offensive and Battery Deals Take Shape
Published on 10/05/2026 at 14:41 | Editorial boerse-global.de
Volkswagen has picked Britain's Wayve to supply the core software for its next generation of highly automated cars, according to media reports, edging out a field of rivals that included US chipmaker Nvidia. No binding contract has been signed yet, people familiar with the industry say, but the direction of travel is clear: the Wolfsburg group intends to source the brains behind its higher-level driver-assistance functions from the London-based AI start-up.
The decision follows a round of comparative testing and marks a break with the company's earlier software path. Wayve, founded in 2017, builds its system on camera data and end-to-end deep learning, deliberately steering clear of hard-coded behavioural rules and detailed 3D maps. The start-up has raised roughly USD 2.8 billion across several funding rounds, drawing backing from Mercedes, Nissan and Stellantis — and from Nvidia itself, which is expected to keep supplying processors to Volkswagen regardless of the outcome.
A reset after the Bosch partnership
The shift comes after the joint development venture between Volkswagen's software subsidiary Cariad and supplier Bosch came to an end. Existing shared software will still see use, but for higher levels of automation the group is now looking to specialist partners to shorten development timelines. Integration of the Wayve technology into vehicles is to stay in-house at Cariad, where the autonomous-driving unit employs about 1,200 people.
That unit sits inside a business facing deep cuts. Cariad plans to shed 1,000 positions from a workforce of more than 4,000, and subsidiary Vaiva, which employs around 160 staff, is slated for closure.
Paris showcase and an electric Tiguan
The software pivot runs alongside a broad product push. Volkswagen's brands will roll out new model premieres at the Paris motor show from 12 October, with a 11 October dialogue involving political, media and industry representatives under the "For Europe" initiative serving as a curtain-raiser. Chief among the projects is the fully electric ID. Tiguan, whose world premiere is slated for early October. The model is set to replace the ID.4 and ID.5 lines from early 2027.
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Those moves are meant to sharpen Volkswagen's profile in the battery-electric segment, where succession for established volume models is seen as a strategic test of its position in Europe. At the same time, expansion of software and vehicle architectures is intended to ensure the new generations meet tougher demands on range and efficiency.
Battery supply chain gets a new map
On the industrial side, the group is reshaping its battery sourcing. Together with subsidiary PowerCo SE and partner Gotion High-tech, Volkswagen agreed joint ventures on 28 September covering battery cell production. Plants for LFP cells and cathode material are planned at three sites — Valencia, Šurany and Kenitra — and the agreements also set out joint procurement and distribution activities in Europe.
Volkswagen additionally signed binding contracts to sell a 5.3% stake in Gotion, a transaction still subject to regulatory approval. A meaningful holding is to be retained after the deal. The structural overhaul is being accompanied by internal negotiations, after Volkswagen cancelled collective agreements at year-end and review talks got under way. Through partnerships and partial disposals, the group is trying to free up capital while securing access to battery technology — a balancing act whose payoff for profitability in a difficult market remains the central question.
Analysts split as the stock hugs its low
Recent business strains have already fed into more cautious calls on the capital markets, with media reports pointing to reduced earnings visibility after the group's earlier guidance cut. The scepticism captures the squeeze Volkswagen faces between transformation costs and softer demand.
UBS stays neutral on the stock, cautioning that the long-term margin target of roughly 9% by 2030 looks hard to reach under its base case. Jefferies, by contrast, reiterated its buy recommendation. Investors are looking to the strategy presentation scheduled for 12 October in Paris for clarity on the group's future direction and planned model cycles.
In trading, the preference shares closed Friday at EUR 67.60, just 0.6% above their 52-week low. The stock was quoted at EUR 67.78 on Monday, hovering narrowly above the 52-week trough of EUR 67.02 touched that day.
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