Toronto, Ontario -- Luminar Technologies Inc., a U.S. company that makes long-range LiDAR sensors for vehicles, is facing fresh pressure after Volvo Car AB, a carmaker based in Sweden, ended a major supply arrangement and paused decisions on future programs.
According to various reports and officials from Volvo, the automaker has decided to remove Luminar’s Iris sensor from upcoming models and to discontinue the relationship. The officials say the company wants to limit its supply-chain risk exposure and believes Luminar has not met the obligations set out in the original agreement. Reports also say Volvo is delaying any decision on adopting Luminar’s next generation Halo system.
Luminar has halted work tied to Volvo programs and has filed a claim for damages. The change takes place as the company faces major financial strain. It reported about US$74 million in cash and marketable securities at the end of September and listed about US$429 million in debt. It has missed interest payments and has entered forbearance agreements with lenders.
The company has also reduced its workforce. It is cutting spending and holding back costs tied to programs that no longer have clear volume. It says it is reviewing strategic options as it manages debt and cash flow.
The decision by Volvo shifts the balance for the LiDAR sector. The carmaker had been one of the highest-profile buyers of long-range sensors. Its step back signals heightened concern over supplier stability, production risk and the cost of advanced sensor suites.
