Here's an interesting solution to a problem most people haven't thought about yet: what do you do with a steering wheel when nobody's steering? Autoliv, Inc. (ALV) and mobility startup Tensor have jointly developed a foldable steering wheel for Tensor's Robocar that works like a normal wheel when you're driving manually, then neatly retracts when the car switches to autonomous mode. The idea is to free up cabin space and make the vehicle feel more like a flexible living area when you're not actually doing the driving.

The retractable design tackles a real limitation in higher-level autonomous vehicles: fixed steering wheels become awkward obstacles when the car is handling everything itself. Tensor and Autoliv are planning to scale production of the Robocar in the second half of 2026, assuming everything goes according to plan.

In Level 4 autonomous driving, the vehicle can manage all driving tasks under specific conditions without human intervention. When that happens, the steering wheel retracts and clears the driver's area, essentially transforming the front row into something closer to a comfortable lounge space. The design preserves the option for manual control while maximizing comfort and layout flexibility when the human isn't needed behind the wheel.

What makes this particularly clever is how Autoliv handles the safety side. The airbag system adapts based on whether the steering wheel is deployed or folded away. If the wheel is retracted, an instrument-panel airbag takes over protection duties. If the wheel is extended for manual driving, the traditional steering-wheel-mounted airbag provides coverage. It's safety hardware that actually thinks about what mode the car is in.

"Automotive safety can no longer follow a one-size-fits-all philosophy. We asked ourselves how to make safety intelligent and adaptive—creating a system that seamlessly aligns with the driver's needs. Our collaboration with Tensor delivers precisely that: a steering solution that enhances both safety and comfort by adapting to the vehicle's mode," said Fabien Dumont, Executive Vice President and Chief Technology Officer of Autoliv.

Tensor CEO Jay Xiao added, "Fully self-driving technology provides a groundbreaking user experience, but manual driving in certain scenarios is still desired by many people. Our dual-mode approach with a foldable steering wheel combines the best of both worlds and gives customers the freedom to choose."

Autoliv is continuing to invest in next-generation safety technology even as it manages external pressures like tariff costs. The company is positioning itself around resilience and innovation as autonomous driving technology gradually moves from concept to production reality.

ALV Price Action: Autoliv shares were down 0.08% at $121.98 during premarket trading on Monday.