Published: September 08, 2016
Chinese-owned Volvo Cars and Sweden-based automotive safety group Autoliv have recently formed a new partnership to form a jointly-owned company for the development of autonomous cars. The two companies are going to work on a software for connected cars and have joined hands for the same.
The planned new company will have its headquarters in Gothenburg, Sweden, and an initial workforce taken from both companies of around 200, increasing to over 600 in the medium term. The company is expected to start operations in the beginning of 2017.
The joint venture will create a new entrant in the growing global market for autonomous driving software systems. It marks the first time a leading premium car maker has joined forces with a tier one supplier to develop new ADAS and AD technologies. The new company, which has yet to be named, will develop advanced driver assistance systems (ADAS) and autonomous drive (AD) systems for use in Volvo cars and for sale exclusively by Autoliv to all car makers globally, with revenues shared by both companies.
Håkan Samuelsson, president and chief executive of Volvo Cars, said:
By combining our know how and resources we will create a world leader in AD software development. This means we can introduce this exciting technology to our customers faster.
The joint venture will bring together two global leaders in automotive safety, underlining the contribution ADAS and AD can make to road safety and speeding the development and introduction of fully autonomous cars.
Jan Carlson, chairman, chief executive and president of Autoliv, said:
There are no two companies that can claim to have done more for automotive safety worldwide than Autoliv and Volvo. This new company is a recognition of the fact that autonomous driving is the next step to transform road safety.
Both Autoliv and Volvo Cars will licence and transfer the intellectual property for their ADAS systems to the joint venture. From this base the company will develop new ADAS technologies and AD systems. It expects to have its first ADAS products available for sale by 2019 with AD technologies available by 2021.
Source: Volvo Cars