Volvo ends relationship with Luminar, removes lidar from vehicles
Volvo will no longer use lidar in its vehicles after ending a relationship with Luminar, multiple media sites are reporting.
The automaker was the first to give Luminar a major run at rate production test as a precursor to the launch of its Volvo EX90. Luminar quickly formed other relationships with Mercedes and Polestar, as announced during CES in 2024.
According to The Drive, Volvo first planned to make lidar optional in its ES90 and EX90 2026 models but in recent days confirmed it would be removing it altogether.
“Volvo Cars has decided to remove the lidar sensor from its EX90 and ES90 cars and discontinue its relationship with supplier, Luminar,” a Volvo Cars USA spokesperson wrote in a statement Tuesday to The Drive. “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 automaker continued by saying it couldn’t offer lidar and limit the company’s supply chain risk exposure, according to The Drive.
“The company’s products can deliver a high level of safety and driver support, enabled by the cars’ powerful core computing coupled with their advanced sensor set — with or without a lidar,” the statement continued. “This situation has an effect on some customer orders, and we regret any concerns this might cause. We’re currently in the process of contacting affected customers.”
Luminar founder Austin Russell resigned as president and CEO of Luminar in May following a code of business conduct and ethics inquiry by the company’s audit committee and board of directors, according to a Luminar press release.
It stated the “matter” did not impact the company’s financial results and that Russell would remain on the board and be available for incoming CEO Paul Ricci.
TechCrunch reported that a day after Russell’s resignation board member Jun Hong Heng also resigned. Inside EVs reports that CFO Thomas Fennimore stepped down last week.
“Taking a look at Luminar’s financials also paints a better picture,” Inside EVs reports. “Currently, it has $429 million in debt with all liabilities adding up to more than half a billion dollars. The company made just $18.8 million in revenue so far this year; however, its costs of product and services add up to $26.8 million (meaning that it took a net loss of around $8 million selling its sensors under cost). It also posted $66.6 million in R&D losses for 2025.”
The company had about $72 million in cash and marketable securities at the end of last month, Inside EV says. It is also set to run out of money by early 2026 if nothing changes.
A Nov. 17 SEC filing by Luminar notes Volvo’s decision to terminate the agreement.
“As previously disclosed, the Company has made a claim against Volvo for significant damages and has suspended further commitments of Iris LiDAR products for Volvo pending resolution of the dispute,” the filing says. “There can be no assurance that the dispute will be resolved favorably or at all. Furthermore, 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.”
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Luminar roofline LiDAR integration courtesy of Volvo