Volkswagen Says Self-Driving Cars Have Limited Appeal, High Cost

Advertisement
By Reuters | Updated: 6 March 2019 11:58 IST

Fully autonomous vehicles will take at least another five years to perfect, with the cost and complexity of rolling out the technology globally serving to undermine the business case, Volkswagen's head of commercial vehicles said.

Autonomous cars require high-tech infrastructure, hugely expensive lidar and radar systems, as well as pricey deals with cloud computing and mapping providers, VW's Thomas Sedran told Reuters on the sidelines of the Geneva motor show.

Advertisement

"It will take another five years to develop the technology to achieve higher levels of autonomy. Can you see a business case which justifies these overheads for this period of time? It's just too expensive," Sedran said.

Sedran is in charge of evaluating Volkswagen's autonomous strategy in commercial vehicles, where last-mile delivery services could benefit from driverless vans.

Advertisement

The auto industry and technology companies such as Google and Uber have spent billions developing vehicles that do not need drivers, seeking to lower the cost of ride-hailing and delivery services.

"The complexity of solving this problem is like a manned mission to Mars," Sedran said of the development of completely driverless vehicles, a level of technological sophistication known as Level 5 automation.

Advertisement

"Level 5 will never happen globally. You need latest-generation mobile infrastructure everywhere, as well as high-definition digital maps that are constantly updated. And you still need near-perfect road markings," he explained.

"This will only be the case in very few cities. And even then, the technology will only work in ideal weather conditions. If there are large puddles on the road in heavy rain, that's already a factor forcing a driver to intervene."

Advertisement

Volkswagen and Ford are in talks about a potential collaboration in autonomous vehicles, but the two carmakers have so far failed to agree on whether or how much the German company will invest in Ford's self-driving car operations, people familiar with the negotiations said.

Last week BMW and Daimler pooled their resources on autonomous cars development in an effort to spread the cost.

Because you need back-up drivers, this is an additional cost on top of the technology, where sensors, processors and software for so-called Level 3 cars already cost about 50,000 euros ($56,460), Sedran said.

"We need the technology cost of the sensors to come down to around 6,000 to 7,000 euros," Sedran said. "This requires quantum leaps in innovation in lidar technology, for example."

Even if this were achieved, the cost of high-definition maps and cloud computing add hundreds of millions of euros in annual costs for fleets of robo-taxis or delivery vans, Sedran added.

"Who is going to keep up that kind of spending for five years without a clear business case," he said.

© Thomson Reuters 2019

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: Volkswagen
Advertisement

Related Stories

Popular Mobile Brands
  1. Vu Ultra Large Smart TV Series With Up to 100-Inch 4K QLED Display Debuts
  2. Amazon Sale 2026 Will Offer These Smartphones at Discounted Prices
  3. Oppo A7 Pro Max Launched With 10,000mAh Battery: See Price, Features
  4. Samsung One UI 9 Update: Galaxy S25, Z Fold 7, Z Flip 7 Get Rollout Dates
  5. OnePlus N6 Lite 4G Debuts in India: Check Price, Specifications
  6. Flipkart Teases Early Bird Offer on iPhone 17 Ahead of Big Billion Sale
  7. CMF to Become a Standalone Indian Firm, Nothing's Carl Pei Announces
  8. OnePlus 16's New Refreshed Design to Feature Ultra-Thin Bezels
  9. Realme 16 Pro 5G Harry Potter Edition First Impressions
  1. Amazon Great Indian Festival Sale Offers, Discounts on iPhone 16, Samsung Galaxy S25 Ultra and More Teased
  2. iQOO Z11 Lite 5G Gets New 4GB RAM, 64GB Storage Variant in India: Price, Availability
  3. Airtel Adds iCloud+, Apple TV and Arcade to Rs. 999 and Above Family Postpaid Plans
  4. Samsung's One UI 9 Update Rollout Date Confirmed for Galaxy S25, Galaxy Z Fold 7 and Z Flip 7
  5. OnePlus 16 to Feature Ultra-Thin Bezels as New Display and Design Details Emerge
  6. Vivo V80 India Launch Date Announced; Display, Camera, Battery Specifications Revealed
  7. DoT Warns of Up to Rs. 50 Lakh Fine, Up to 3 Years' Imprisonment for Fraudulent SIMs and IMEI Tampering
  8. Bungie Announces Plan to Bring Back Destiny 2 and Evolve Marathon as Part of Studio's 'Next Chapter'
  9. Carl Pei’s Masterstroke: How CMF is Turbocharging Its R&D With Optiemus in India
  10. OnePlus N6 Lite 4G Launched in India With 6.75-Inch Display, 7,000mAh Battery: Price, Specifications
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.