They DO sell cars with Audi Lane Assist. Do not pretend is it a philosophy issue. And they DO sell the new Audi A8 with Lane Assist activated in L2 for the time being.
It is just that it is TODAY not as capable as Tesla system.
But it IS a philosophy issue. It is what makes the whole approach so controversial too. Here's the part philosophy plays: Audi have decided that piloted driving will always be Level 3+, because they feel the car being responsible is the right approach. They also have decided no Level 2 feature will ever work beyond piloted driving to avoid mode confusion. Either the car is fully responsible or the driver is doing the driving (and definitely no Level 2 steering at 100 kph, if Level 3 stops at 60 kph).
Both of these limit the step-by-step nature of bringing out autonomous features in different manners. It will mean Audis will likely be offering car-responsible driving sooner than others, they really are the leader on this amongst the traditional auto-makers, but slower to offer advanced driver's aids (or lacking some advanced aids completely), because car-responsible systems by nature are slower to validate and release. While Audi likely gets to Level 3 first, others will likely get beyond that in Level 2 - and Audi can't follow them if they stick to their philosophy that no Level 2 system of theirs goes beyond their Level 3...
Let me explain in more detail.
Audi has decided on a meticulous Level 2 to Level 3 to Level 4 to Level 5 roadmap, where the previous level is never more capable than the next. Audi is, until they get to "piloted driving", quote, "following a strict policy that the driver does the driving and the system just helps out."
The first step was the Audi adaptive cruise control back in the noughties. This was Level 1, given it was not doing two things at once. Then came the Audi lane assist, which at first was a mere steering wheel shake warning. Later Audi lane assistant evolved into Audi active lane assit, meaning it would steer you back towards your own lane if you were crossing into the other lane. So the steering wheel shake warning was replaced with a yank back towards the right direction. This was still considered a warning only when it first came.
The first Level 2 system, meaning two assistants continuously complementing each other, was the Audi Traffic-jam assit. This is basically a tuned up combination of Audi adaptive cruise and active lane assit, and operates up ton 60 kph (make note of this number) "gently
correcting steering to ensure you stay in your lane". You still have to drive, "the system just helps out."
Here is Audi's autonomous history/plan, roughly (they also have a similar history for auto-parking, but I'm mostly ignoring it here):
2002+: Level 1: Adaptive cruise, lane warning
2010+: Level 2 assisted driving: Active lane assit, traffic-jam assit (up to 60 kph)
~2018: Level 3 piloted driving: Traffic-jam pilot (up to 60 kph)
~2020: Level 3/4 piloted driving: Level 3 highway speeds (up to 130 kph), Level 4 parking
This brings us to today. Why is Audi not releasing a Level 2 system similar to Tesla Autopilot or Volvo Pilot Assist? Because they are following a strict policy that until they get to piloted driving, the driver drives and the system just helps out. And for Audi, piloted driving means the car takes responsibility for the driving (Level 3+) and Level 2 does not allow that.
So, piloted driving for them is Level 3, Level 4, Level 5. This is widely documented in tons of Audi materials over the past decade. This means a significantly greater responsibility and legal framework is required, compared to Level 2, where the driver is responsible. But given Audi's insistence that no Level 2 assist system of theirs can be more capable than their piloted systems (Level 3+), this philosophy limits them.
Audi already has a fully functional car, Elaine, doing Level 3 piloted driving at motorway speeds. Indeed their previous prototype Jack did this already for press in 2015 and before. They could easily release this as a Level 2 system like Tesla and say the driver is responsible. But that is not their philosophy. They want to do all piloted driving in a way that the car is responsible for - and the system is not validated yet to be responsible for itself in all scenarios at those speeds in a production environment (indeed Audi feels they may need two lidars to make sure at those speeds, which Elaine has, but Jack or Audi A8 does not).
The first piloted experience is the Traffic-jam pilot, which is basically a Level 3 version of the Traffic-jam assit, same speed limit, so a natural progression. The car will never go from driving piloted to assisted, either the car can drive only Level 2 assisted (as is now), or only Level 3+ piloted (as in the future). No confusion. When you go from an old Audi to new, the new is always more capable than the old, never so that an old Level 2 system would be more capable than a new Level 3 system... And the Level 3+ speed-limit is limited by what Audi is comfortable releasing as a car-responsible system. And Level 2 is speed-limited by the Level 3 speed-limit... and the fact that Audi won't allow it to pilot at speeds.
They will start at 60 kph piloted driving this year and around two years later they will go to 130 kph piloted driving, and piloted parking (which will be Level 4 and can be done without the driver in the car or even nearby) and so forth. They already have a Level 5 prototype too, Aicon. These are not insiginficant things, given that at Level 3 you are allowed to read a book etc., but the slower validation pace of these Level 3 systems is limiting the pace and design of Audi's Level 2 systems, because Level 2 systems are easier to make (not responsible), but Audi has decided their Level 2 can't surpass their Level 3 to avoid confusion...
Hence the philosophy.
There is a logic to this, but indeed this also puts them in a bit of a predicament. Due to Tesla, the rest of the industry has been pivoting towards massively capable Level 2 driver's aids, but to follow Audi would have to change their philosophy: decide that piloted driving can be Level 2 and/or that Level 2 piloted driving can co-exist with Level 3 systems (e.g. Level 3 driving at 0-60 and Level 2 driving at 61 kph to 130 kph for example). So far they have been unwilling to do that.
Some other manufactures have decided to stick to Level 2 only, until they can get to Level 4 fully. It avoids Audi's predicament.
