Volkswagen recently announced that it will begin testing autonomous vehicles in the United States. The company plans to start with driverless versions of its ID Buzz electric microbus, and the new fleet will be tested on public roads in Austin, Texas, later this month.
This announcement comes several months after Volkswagen, along with Ford, pulled funding for Argo AI, a self-driving startup that had planned on launching robotaxi services in the United States and Europe. Unfortunately, the loss of funding forced Argo AI to shut down, casting a pall over the autonomous vehicle (AV) industry, which has been struggling to build a viable business model around driverless cars for over a decade.
Originally, Volkswagen had intended to use Argo’s technology to power a fleet of self-driving ID Buzz microbuses. However, the company is now developing the hardware and software in-house, in collaboration with its partner, Mobileye. The plan is to test the autonomous vehicles in Austin, along with four other U.S. cities, over the next three years, with the goal of launching a robotaxi service in 2026. Additionally, the three-row ID Buzz for the U.S. market, which was unveiled last month, is set to go on sale in 2024.
To support these efforts, Volkswagen is creating a new subsidiary called Volkswagen ADMT, with offices in Austin and Belmont, California. This new division will be staffed by former Argo employees who remained with the company after the shutdown. Volkswagen also plans to sell autonomous ID Buzz vehicles equipped with fleet management and “remote guidance solutions” to other leading companies in the mobility and transportation space. This marks the second time the automaker has spun off a new subsidiary to tackle autonomous driving.
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Volkswagen has already been testing its autonomous ID Buzz in Germany, where it plans to launch commercial robotaxi and delivery services in 2025. The company intends to deploy the vans as a ridesharing fleet under its subsidiary, Moia, which has been operating electric vehicles as part of its “ride-pooling” service in Hamburg since 2017. The development of Volkswagen’s autonomous driving software is managed by another subsidiary called Cariad, which has undergone significant leadership changes in the past year.
The initial fleet of 10 ID Buzz microbuses in the U.S. will come equipped with autonomous driving software developed in partnership with Mobileye, as well as sensors such as cameras, radar, and lidar. Each vehicle will also have a trained safety driver behind the wheel to monitor operations and take control if the vehicle encounters a situation it cannot navigate.
While Volkswagen is entering the autonomous vehicle space, some of its competitors are already far ahead. Companies like GM’s Cruise and Hyundai’s Motional have already launched nascent commercial robotaxi services in the U.S. and have plans to expand into new markets.
In conclusion, Volkswagen’s announcement of testing autonomous vehicles in the U.S. marks a significant step forward in its pursuit of autonomous driving technology. With the development of in-house hardware and software, as well as partnerships with industry leaders like Mobileye, the company is positioning itself to compete in the AV industry. By testing its vehicles in Austin and other U.S. cities, Volkswagen aims to launch a robotaxi service by 2026 and bring autonomous driving closer to becoming a reality for the mass market.
