Volvo and Autoliv start joint venture for autonomous driving
Volvo Cars and Autoliv Inc have signed a letter of intent to set up a new jointly-owned company to develop next generation autonomous driving software. 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.
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.
Autoliv will be the exclusive supplier and distribution channel for all the new company’s products towards third parties, except Volvo Cars which will source directly from the new company. Its management will comprise of representatives from Autoliv and Volvo Cars.