Volvos Are Permanently Eliminating Their LiDAR Roof Bump, and Luminar Is Displeased | Carscoops

      Volvo has attributed its decision to abandon LiDAR technology to its supplier Luminar's failure to fulfill "contractual obligations."

      Previously, Volvo had made LiDAR an optional feature but has now eliminated it completely. The Swedish carmaker was Luminar’s largest individual client.

      Luminar has since filed a lawsuit against Volvo, seeking substantial damages.

      Many automotive manufacturers consider LiDAR sensors essential for advanced self-driving systems, and Volvo was one of the early advocates for this technology. The company had formed an early partnership with the U.S.-based LiDAR producer Luminar, intending to incorporate the sensor into its upcoming vehicle lineup. However, this collaboration has now drastically changed.

      Earlier this week, Volvo announced that the 2026 ES90 and EX90 models will not include a LiDAR sensor, reversing its earlier stance where the technology was initially standard and then turned optional.

      What Led to the Change?

      Volvo stated that the decision was made "to satisfy customer demand and due to limited availability of the lidar hardware."

      Despite the removal of this crucial sensor, Volvo maintains that the ES90 and EX90 will still comply with safety standards and "offer a high level of driver assistance." However, there was no mention of whether the lack of the sensor would impact the driving assistance capabilities.

      In a statement, a spokesperson for Volvo Cars USA mentioned that the decision aimed to "reduce the company’s supply chain risk exposure," attributing it directly to Luminar’s inability to fulfill its contractual responsibilities to Volvo Cars.

      Volvo also expressed that its vehicles can still offer a high degree of safety and driver assistance, thanks to their powerful core computing and advanced sensor configurations, with or without a lidar.

      The automaker recognized that this decision will impact some existing customer orders and indicated it is in contact with those affected.

      Luminar Seeks Damages

      Naturally, Luminar has expressed dissatisfaction with Volvo's choice. In late October, when Volvo transitioned LiDAR from a standard feature to an option, the sensor manufacturer filed a claim for significant damages, warning that recouping those losses might be challenging.

      On November 14, Luminar confirmed that Volvo had entirely terminated its contract, which is a significant setback as Volvo was the company's largest single customer, potentially forcing Luminar to reconsider its long-term aspirations in automotive partnerships.