Volvo Discontinues Lidar on EX90/ES90, Compensates Owners
Volvo has officially announced the removal of lidar technology from its upcoming EX90 and ES90 electric vehicles. The company will provide financial compensation to customers who pre-ordered these models, as the promised lidar-based functionalities will not be delivered. This decision follows the termination of its partnership with lidar supplier Luminar due to supply chain issues and unfulfilled contractual obligations. Despite the change, Volvo assures that the vehicles maintain a high level of safety through their existing advanced sensor suite.
The Swedish automaker confirmed the cessation of its lidar partnership with Luminar, impacting the EX90 and ES90 models. These vehicles were initially equipped with Luminar Iris lidar units on their roofs, with the expectation of integrating software features that would leverage this technology. However, these features never materialized and will now be permanently absent. Henrik Juel Teige, a spokesperson for Volvo Cars Norway, articulated the company's decision, citing the termination of the collaboration with their lidar supplier and the discontinuation of plans to develop lidar-based functions for the affected car lines.
In light of this development, Volvo has initiated a compensation program for customers who had purchased these vehicles under the expectation of lidar integration. The compensation varies by region: Norwegian customers will receive NOK 18,000 (approximately $1,900), while Swedish buyers saw a price adjustment of SEK 16,000 (around $1,600) on their pending orders. In the United States, owners are being offered about $1,500 in various optional packages, such as SiriusXM subscriptions, charging credits, a tire-and-wheel protection plan, or a maintenance package. Dutch consumers are eligible for €1,500, and Canadian purchasers will receive C$2,000. This measure acknowledges that customers effectively paid for hardware that ultimately became non-functional.
The decision to discontinue lidar integration stemmed from issues that began to surface in the previous fall. Reports from November indicated Volvo's intention to abandon lidar for its 2026 models, leading to significant dissatisfaction from Luminar. The contract between the two companies was officially terminated on November 14, with Volvo citing supply chain vulnerabilities and Luminar's failure to meet its contractual obligations. Subsequently, Luminar filed for Chapter 11 bankruptcy protection in December 2025. With its supplier no longer solvent or capable of delivering and supporting the sensor technology, Volvo determined that the previously marketed lidar-based features could not be implemented.
Volvo maintains that the EX90 and ES90 models retain their robust safety standards even without lidar. The automaker stated that its products provide a high level of safety and driver assistance capabilities, supported by powerful core computing and an advanced array of sensors, irrespective of lidar inclusion. The existing sensor configuration includes five radars, eight external cameras, two internal cameras, and sixteen ultrasonic sensors, ensuring that the removal of lidar constitutes the elimination of one sensory layer rather than compromising the entire safety system.
This situation has drawn comparisons to debates within the automotive industry, particularly concerning vision-only autonomous driving systems advocated by figures like Elon Musk. However, Volvo's continued reliance on a comprehensive sensor suite, including radar, cameras, and ultrasonic sensors, diverges from a purely camera-based approach. The company's action demonstrates a strategic shift away from a single expensive sensor while leveraging its other sophisticated detection technologies to uphold vehicle safety.