Volvo is making a major course correction in its approach to advanced driver assistance, announcing it will remove LiDAR entirely from its upcoming vehicles after cutting ties with longtime supplier Luminar.
The decision is a significant shift for the automaker, which once championed LiDAR as a core safety technology and featured the sensors as standard equipment on its flagship electric models.
A spokesperson for Volvo confirmed the decision this week, stating the brand will no longer offer LiDAR on the EX90 and ES90 beginning with the 2026 model year. The move also ends Volvo’s multi-year collaboration with Luminar, the Florida-based startup that provided the laser-based perception systems used in those vehicles.
“Volvo Cars has decided to remove the LiDAR sensor from its EX90 and ES90 cars and discontinue its relationship with supplier Luminar,” the company told media. “Volvo Cars has made this decision to limit the company’s supply chain risk exposure and it is a direct result of Luminar’s failure to meet its contractual obligations to Volvo Cars.”
The decision will likely also impact Volvo’s sister brand Polestar, which also uses LiDAR in its electric vehicles (EVs).
The breakup comes at a difficult time for Luminar, which recently warned investors it may be forced into bankruptcy after defaulting on multiple loans. The supplier has reportedly laid off a quarter of its workforce, is attempting to sell the company or portions of it, and is facing an SEC investigation. It has also taken legal action against Volvo, claiming significant damages after the automaker halted its LiDAR purchases.
The two companies had previously enjoyed a mutually beneficial partnership. Volvo invested in Luminar early, helping the startup bring its sensors into production vehicles and boosting its credibility ahead of a 2020 SPAC merger. In turn, Luminar helped Volvo deliver on its ambitious automated-driving safety claims.
But tensions escalated through 2024 and 2025 as Luminar struggled to stabilize its finances and outsource manufacturing of its sensors.
Volvo initially reacted by making LiDAR optional beginning in 2026, but this week’s announcement makes clear the technology will disappear from its lineup entirely—at least for the foreseeable future. The automaker has not indicated that it plans to replace Luminar with another supplier, suggesting Volvo will rely on cameras, radar, and its core computing architecture instead.
“[Our] products can deliver a high level of safety and driver support… with or without a LiDAR,” Volvo said, adding that the change will affect some customer orders and that communication with those affected is underway.
The shift places Volvo closer to Tesla’s camera-only philosophy, though testing has historically shown that LiDAR and camera systems each bring distinct strengths—and their own blind spots. LiDAR can struggle in heavy precipitation or fog, while cameras can be challenged by glare or low-visibility conditions.
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