Mobileye to close aftermarket solutions unit

JERUSALEM–(BUSINESS WIRE)–Mar. 18, 2024– Mobileye has chosen to wind down its aftermarket solutions unit that provides retrofitted advanced driver assistance technology, after a thorough review of this unit’s business prospects and investment needs.

Automakers and other vehicle manufacturers have steadily increased installing integrated ADAS solutions on new vehicles. Consequently, the demand and future addressable market for retrofitted ADAS solutions has declined. This division has seen its revenues decline meaningfully, to roughly $40 million on an annual basis. In recent years, it has not positively contributed to Mobileye profitability.

“This was a very difficult decision,” said Prof. Amnon Shashua, President and CEO of Mobileye. “The IMS division, formerly known as Aftermarket, was an early driver of Mobileye’s leadership. It showed that delivering road safety at a low cost effectively serves as a key catalyst for increasing the adoption of ADAS technologies on new vehicles. Unfortunately, the success of Mobileye’s built-in ADAS solutions has diminished the opportunities for retrofit solutions. It is no longer viable to continue the retrofit solutions activity.”

This move will focus it’s resources on the tremendous opportunities for delivering more advanced forms of driver assist technologies and autonomous driving. The company will work to support about 130 employees affected by the shutdown worldwide over the near-term. It remains committed to satisfying the needs of existing IMS customers over the medium-term. It will also continue offering and servicing customers of its General Safety Regulation (GSR) solutions for commercial vehicle manufacturers.

News related to Mobileye –

  1. Mobileye (MBLY) stock surges 11.4% on high volume
  2. HiRain unveils Mobileye EyeQ™6 lite based ADAS system in China
Back to top button