Volvo, long celebrated for its commitment to vehicle safety, has abruptly cancelled a key technology partnership and removed LiDAR (Light Detection and Ranging) sensors from its EX90 and ES90 models, starting in 2026. This decision comes after the Swedish automaker accused its technology partner, Luminar Technologies, of failing to meet contractual obligations.
The U-Turn on LiDAR
LiDAR uses lasers to create detailed 3D maps of the vehicle’s surroundings, offering superior depth perception and performance in adverse weather compared to camera-based systems. Volvo previously touted LiDAR as a crucial safety enhancement, estimating it could reduce severe crashes by up to 20%. The EX90, launched in 2024, was the first Volvo to feature this technology, easily identifiable by the “bubble” housing the LiDAR sensor above the windscreen.
Supply Chain Risk and Legal Fallout
Volvo’s shift to removing LiDAR comes as a move to reduce supply chain exposure, but not without legal consequences. Luminar Technologies, in which Volvo held a stake, filed a lawsuit after Volvo made the tech optional, rather than standard. Volvo alleges Luminar’s failure to meet contractual obligations led to the cancellation of their five-year partnership.
Contradictions and Industry Context
The decision is particularly striking given Tesla’s previous dismissal of LiDAR as “freaking stupid” while remaining Luminar’s largest customer in 2024. Despite skepticism from some corners of the industry, LiDAR continues to be integrated by other manufacturers like Mercedes-Benz and Daimler Truck. Luminar claims their tech could save up to one million lives annually, a bold assertion that now faces scrutiny as Volvo pulls back.
Impact on Safety and Future Plans
Volvo maintains that its vehicles will still meet high safety standards without LiDAR, relying on their existing suite of radars, cameras, and ultrasonic sensors. The EX90 has already achieved a five-star Euro NCAP safety rating, which will apply to Australian models as well. Volvo also plans to consolidate hardware and software with its parent company, Geely, to reduce costs and expand hybrid tech options.
What This Means
Volvo’s decision highlights the complexities of automotive technology adoption and the volatility of supplier relationships. While the company insists safety won’t diminish, the removal of LiDAR raises questions about the future of advanced driver-assistance systems and the trade-offs between cost, risk, and technological ambition. The abrupt reversal suggests that even automakers committed to safety may prioritize financial stability over cutting-edge features.
