Another strong blow seems to be taking a large company in the car sector, as one of the largest German firms is reportedly seriously considering ending its cooperation with her.
The German car industry has long been in a particularly pressing economic situation, As more and more companies seem to be experiencing liquidity difficulties and having difficulty adjusting to the rapid changes that are reshaping the balance in the industry.
In this context, problems are extended throughout the production chain and in each sub-sector, companies that once starred in losing an important part of their potential and facing increased challenges.
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One of the companies that largely join this category is Bosch, which, despite its long presence in the automotive industry, now appears to be facing considerable difficulties, while at the same time record losses in investment plans and partnerships it had previously secured.
More specifically, the recent development which reflects the pressure it receives concerns The Court held that, in the absence of the Commission's assessment of the compatibility of the aid with the common market, the Commission had failed to fulfil its obligations under Article 92(3) of the Treaty. investment which touched the EUR 1.5 billion, however it seems that it is now leading to a dead end.
The co-operation was announced in 2022, when Volkswagen's software subsidiary, CARIAD, and Bosch joined forces to develop a new generation of driving and autonomous traffic aid systems.
The aim was to create a common platform to be used by all Volkswagen Group brands, allowing German colossus to compete with claims of competition in the west as well as emerging companies from China.
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According to further information from the Germany, Bosch's results don't seem to have been enough to convince VW, which assessed that the systems in which the company concluded are not capable of providing an effective competitive advantage. Volkswagen is therefore reportedly going on to review its strategy, now following a different direction.
It is noted that the collapse of cooperation comes at a time of intense challenges for Bosch, which has recently been faced with significant economic pressures that have led to significant cuts and redundancies.
As far as Volkswagen is concerned, the German firm is now considering relying more on external development partners, both software and necessary equipment, rather than continuing development through Bosch.
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In fact, the German car industry is reportedly already in search of a new technological partner, with a view to having reached a new agreement by the end of September.
Among the names heard are Mobileye, with which Volkswagen is already cooperating in certain driver assistance systems, but also in the Rivian, with which it has entered into strategic cooperation on the new electrical and digital architecture of its future models.
