The alliance – announced in 2019 – plotted to develop ‘next-generation’ autonomous driving (up to 'fully-autonomous' Level 4), with the first cars fitted with the technology slated for launch in 2024.
However, citing exceeding costs and adverse economic conditions, the brands announced they would pause their partnership indefinitely.
“Following extensive review, [Mercedes-Benz and BMW] have arrived at a mutual and amicable agreement to concentrate on their existing development paths – which may also include working with current or new partners,” the brands said in a joint statement.
Mercedes-Benz said it will continue its focus on decarbonisation and digitalisation, while BMW said it will focus on "powerful sensors and computing power" and its modular system.
Despite ending their autonomous driving alliance for the foreseeable future, Mercedes-Benz and BMW will continue to work together with German brand Audi on their consortium of ‘Here’ – a mapping and location data company.