January 5, 2026
Finance

Autoliv and Tensor Innovate with First Foldable Steering Wheel to Enhance Autonomous Vehicle Comfort

New retractable steering wheel design promises increased cabin flexibility during autonomous driving with manual override functionality

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Summary

Autoliv, in collaboration with mobility startup Tensor, has developed the automotive industry's first foldable steering wheel, aimed at enhancing passenger comfort and cabin space in autonomous vehicles. This innovative steering wheel fully functions during manual driving and retracts under Level 4 autonomous operation to transform the vehicle's cockpit into a more versatile living area. Production of Tensor’s Robocar, featuring this technology, is expected to accelerate in the latter half of 2026.

Key Points

Autoliv and Tensor have developed the automotive industry’s first foldable steering wheel for autonomous vehicles, enhancing cabin flexibility and passenger comfort.
The steering wheel fully functions for manual driving and retracts during Level 4 autonomous driving, freeing up driver space to create a flexible living area.
An adaptive airbag system shifts protection between the steering wheel and instrument panel depending on the wheel’s position, improving safety alignment with vehicle mode.
Production scaling of Tensor's Robocar with the foldable steering wheel is expected in the second half of 2026, marking the technology’s commercial introduction.

In a significant development for autonomous vehicle design, Autoliv, Inc. (NYSE: ALV), a leader in automotive safety systems, together with emerging mobility company Tensor, have unveiled a foldable steering wheel engineered expressly for Tensor's Robocar—the first vehicle to integrate this technology.

The steering wheel retains its conventional functionality for driver control in manual mode but is designed to retract seamlessly when the autonomous driving system engages. This dual-mode functionality permits the steering wheel to be folded away during self-driving operation, subsequently expanding the interior space and markedly improving passenger comfort and usability.

The manufacturers highlight that this retractable design is a targeted solution addressing a key challenge in highly automated vehicles: fixed driving controls that can inhibit cabin flexibility and reduce overall comfort once autonomy is activated. By removing the wheel from the driver's immediate vicinity during autonomous operation, Robocar transforms the usual front-seat area into a more flexible, open environment.

Tensor anticipates increased production rates of the Robocar with the foldable steering wheel beginning in the second half of 2026, marking a pivotal point for introducing such adaptive interior technologies at scale.

Specifically, in vehicles operating at Level 4 automation—where the vehicle is capable of managing all driving tasks within certain conditions without human intervention—the steering wheel retracts completely. This action frees the driving area, enabling the space to transition from a standard driver-focused cabin configuration to a more versatile living space, accommodating a wider range of use cases and offering amplified comfort for occupants.

Crucially, the technology preserves manual override capabilities, allowing users to resume direct control with the steering wheel promptly when desired or required. This ensures that while the vehicle capitalizes on automation to optimize space and convenience, the essential option for human operation is never compromised.

Beyond mechanical innovation, Autoliv has introduced an intelligent airbag system to complement the foldable wheel’s functionality. When the steering wheel is stowed, protection is transferred to an instrument-panel airbag system to maintain occupant safety within the driver zone. Conversely, if the wheel is engaged for manual driving, its integrated airbag functions to protect the driver. This adaptive approach signifies a departure from conventional, one-size-fits-all automotive safety concepts toward a more flexible and context-aware system.

Fabien Dumont, Executive Vice President and Chief Technology Officer at Autoliv, expressed that the company sought to redefine automotive safety by making it “intelligent and adaptive,” emphasizing the importance of safety systems evolving in harmony with the driver's interaction with the vehicle. According to Dumont, the joint project with Tensor produces “a steering solution that enhances both safety and comfort by adapting to the vehicle's mode,” underscoring the seamless integration of technology and user experience.

Tensor CEO Jay Xiao described fully autonomous driving technology as delivering “a groundbreaking user experience,” but acknowledged the continued desire among many drivers for manual operation in select scenarios. Xiao noted that the foldable steering wheel's dual-mode design uniquely merges automated driving benefits with the option of human control, effectively granting users the flexibility and freedom to choose their preferred mode at any moment.

From a business perspective, Autoliv remains focused on operational resilience as it advances investment in next-generation safety hardware, manages tariff-related costs efficiently, and maintains innovation funding despite external economic pressures.

In early trading reflected by Benzinga Pro data, Autoliv's shares experienced a marginal decline, down 0.08% to $121.98, indicating a relatively stable market response following the technology's announcement.

Overall, the introduction of the foldable steering wheel represents a strategic evolution in the automotive safety and user interface landscape, merging the benefits of advanced autonomous driving systems with adaptive safety features and user comfort enhancements in a commercial product slated for near-term deployment.

Risks
  • The technology’s mass production and adoption depend on successful scaling beginning in the latter half of 2026 as anticipated.
  • Consumer acceptance of dual-mode driving with a retractable steering wheel remains to be established.
  • Economic and tariff pressures could impact Autoliv’s investment and innovation funding strategies, affecting development timelines.
  • The safety and reliability of adaptive airbag configurations in varied operational modes require rigorous validation to meet regulatory standards.
Disclosure
Education only / not financial advice
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