Volvo Has Abandoned Luminar and Lidar for Its 2026 Models.
David Shepherd/Volvo
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Volvo has been a strong advocate for lidar technology in autonomous driving, despite reports of the sensors in some vehicles damaging smartphone cameras. However, the automaker has had ongoing disagreements with its lidar supplier, Luminar, which recently prompted it to make lidar optional in its ES90 and EX90 models—previously standard features. We have learned today that Volvo has confirmed to The Drive that lidar will be completely removed from its lineup starting with the 2026 model year.
“Volvo Cars has made the decision to eliminate the lidar sensor from its EX90 and ES90 models and end its partnership with supplier Luminar,” a representative from Volvo Cars USA stated on Tuesday. “This decision has been made to reduce the company's exposure to supply chain risks and is a direct result of Luminar not meeting its contractual obligations to Volvo Cars.
“To accommodate customer demand and make the Volvo EX90 and ES90 models available to a broader audience while also mitigating supply chain risk, Volvo Cars previously decided to make lidar optional on these vehicles starting in 2026. The termination of the agreement with Luminar means lidar will no longer be included in any EX90 or ES90 model from the 2026 model year onward.”
Volvo ES90. Volvo
This clearly indicates that Volvo has ended its relationship with Luminar due to the supplier’s alleged failure to meet its commitments. Given Luminar’s recent financial struggles, significant layoffs, and a major reshuffle of its executive team following an ethics investigation by the board, it is not surprising that Volvo has lost faith in the Orlando-based company.
This situation has placed Luminar in a precarious position. On Monday, it noted in an SEC filing concerning the termination of the contract that “there can be no guarantee that any claim or litigation against Volvo will be successful or that the Company will be able to recover damages from Volvo.”
As for Volvo's future plans, the automaker has not suggested it will seek to replace Luminar’s lidar technology with components from another supplier, indicating this could mark the end of lidar technology in its vehicles.
“The company’s products can provide a high level of safety and driver assistance, made possible by the cars’ robust core computing and advanced sensor suite—whether or not lidar is included,” the statement added. “This situation may affect some customer orders, and we apologize for any concerns this may cause. We are in the process of reaching out to impacted customers.”
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Volvo Has Abandoned Luminar and Lidar for Its 2026 Models.
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