Top LiDAR Manufacturer Files for Bankruptcy Following Failed Volvo Agreement | Carscoops

      Volvo has recently announced that it will be eliminating the LiDAR option that was available for the ES90 and EX90 models.

      7 hours ago

      by Brad Anderson

      Luminar has filed for Chapter 11 bankruptcy, with liabilities estimated between $500 million and $1 billion.

      During the bankruptcy proceedings, the company plans to sell its LiDAR division.

      It will continue operations and pay its employees throughout the process.

      Following the loss of a vital supply contract with Volvo, Luminar, which was once seen as a leader in the effort to commercialize LiDAR technology, has declared bankruptcy, signaling a significant change in the company's fortunes.

      This unexpected downturn comes on the heels of founder Austin Russell's resignation as CEO seven months ago and five years after Luminar went public with a valuation exceeding $3 billion.

      Read: Volvo Vehicles Will No Longer Have a LiDAR Roof Bump, and Luminar Is Displeased

      Earlier this week, the company sought Chapter 11 protection in the Southern District of Texas. According to court documents, Luminar's assets are valued between $100 million and $500 million, while its liabilities range from $500 million to $1 billion.

      As part of the bankruptcy process, Luminar plans to divest its LiDAR business. A transaction to sell its Luminar Semiconductor subsidiary for $110 million in cash is already in progress.

      “After thoroughly reviewing our options, the board concluded that a court-managed sale process is the optimal way forward,” said Luminar CEO Paul Ricci. “Our highest priority during this time is to maintain the quality, reliability, and service our customers expect from us.”

      Notably, Luminar intends to keep its operations running and will continue to provide its LiDAR hardware and software to clients during the bankruptcy. It will also maintain employee wages and benefits.

      “Over the last six months, we have implemented significant measures to enhance operational discipline, streamline costs, and refine our strategic focus. However, our existing debt commitments and the pace of industry adoption have hindered our ability to run the business sustainably,” Ricci explained.

      In November, Volvo abruptly announced that the 2026 ES90 and EX90 models would no longer include a LiDAR sensor, citing customer demand and “limited supply of the lidar hardware” as reasons. The company also asserted that Luminar had not fulfilled its contractual obligations.