Bosch, VW software firm Cariad team up for self-driving tech

Car parts supplier Bosch and the Volkswagen software subsidiary Cariad have agreed a deal to cooperate in the development of self-driving cars, reported dpa.

A comprehensive partnership has been agreed to this end, the two firms announced on Tuesday.

"The companies want to make partially and highly automated driving suitable for the masses and available to everyone," they said in a statement.

Functions are planned in VW Group vehicles that will allow drivers to temporarily take their hands off the steering wheel.

Bosch managing director Markus Heyn said solutions could also be offered to other customers of the automotive supplier and electronics group.

Cariad boss Dirk Hilgenberg said that the cooperation would strengthen Germany as a location for innovation.

The global self-driving car market is set to become more competitive in the coming years, with all major carmakers - and US tech giants such as Google and Uber - working on autonomous vehicles.

The highly complex processing needed for a computer to drive a car safely and reliably has held back putting commercially available models on the road.