After heavily promoting lidar sensor technology in recent years, it has now been learned that Volvo is abandoning it, as it cuts ties with lidar technology developer Luminar. The news was first reported by media outlet The Drive.
What is lidar?
The technology consists of a series of sensors that analyze the vehicle's environment, detect objects and obstacles, and also estimate distances using a laser.
For Volvo, the technology was considered revolutionary. However, after years of working to refine the technology, deploy it and introduce it to the public, Volvo is walking away.
The manufacturer assures that it is able to offer the same degree of safety without lidar sensor technology.
The technology was initially supposed to be offered standard with the EX90 and the ES90 (a model not sold in Canada), but that was later changed to make it optional, in a likely portend of more drastic – and final - changes to come.
The why: a relationship with a supplier ends
A Volvo USA spokesperson wrote to The Drive that “Volvo Cars has decided to remove the lidar sensor from its EX90 and ES90 cars and discontinue its relationship with supplier Luminar. Volvo Cars has made this decision to limit the company’s supply chain risk exposure and it is a direct result of Luminar’s failure to meet its contractual obligations to Volvo Cars.”
“To meet customer demand, be able to offer the Volvo EX90 and the ES90 cars to more customers as well as limit the company’s supply chain risk exposure, Volvo Cars had previously made the decision to make lidar optional on these vehicles starting 2026. The termination of the agreement with Luminar means lidar will no longer be offered on any EX90 or ES90 car from Model Year 2026 onwards.”
While there’s no official word on what that failure to meet contractual obligations entailed, we know that Luminar has experienced financial struggles of late, as well as suffered through a high-reaching ethics investigation that led to an executive shakeup.