"Luminar faces potential bankruptcy as Volvo backs off its promise to make lidar standard in its flagship models. Volvo blamed "limited supply of the lidar hardware." Luminar has already warned investors that it may run out of cash by the end of Q1 2026. Not long ago, Volvo and Luminar seemed like the perfect partnership. The Swedish automaker pushed a safety-first approach that used the startup's laser-based sensors to ensure its vehicles were safer than ever."
"Volvo believed in the approach so much that it even pledged to make the tech standard on its flagship electric EX90 SUV and ES90 sedan. Now it's backing off of that promise, and Luminar isn't happy. Volvo told Reuters on Monday that it is officially discontinuing its relationship with Luminar. The company had originally announced last week that it was removing lidar as a standard feature from the EX90 and ES90, however it would live on as optional equipment."
Volvo has moved to discontinue its standard lidar commitment with Luminar and is terminating a multi-year sensor contract. Volvo cited limited lidar hardware supply and said the change reduces supply-chain risk exposure, making lidar optional on flagship EX90 and ES90 models. Luminar warned investors that it may exhaust cash by the end of Q1 2026 and has defaulted on several loans while seeking resolutions with lenders. Volvo is Luminar's largest customer, and the contract termination increases the risk of insolvency. Luminar has already implemented layoffs amid the escalating financial pressure.
Read at insideevs.com
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