Both companies will transfer the intellectual property for their advanced driver-assistance systems to the joint venture
Volvo Cars, has partnered with automotive safety systems firm, Autoliv to develop next-generation autonomous driving software.
The new jointly owned company 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.
According to the partners, it also marks the first time a premium car maker has joined forces with a tier-one supplier to develop new ADAS and AD technologies, and the hope is that it will speed up the development and introduction of fully autonomous cars.
Yet to be named, the company will be headquartered in Gothenburg, Sweden. An initial workforce of around 200 will be taken from both companies, increasing to more than 600 in the medium term. The company is expected to start operations in the beginning of 2017. Dennis Nobelius, managing director of Volvo Switzerland and formerly vice president vehicle line 90 at Volvo Cars, will be chief executive of the new venture.
“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,” said Håkan Samuelsson, president and chief executive of Volvo Cars.
“There are no two companies that can claim to have done more for automotive safety worldwide than Autoliv and Volvo,” added Jan Carlson, chairman, chief executive and president of Autoliv. “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.
Autoliv will be the exclusive supplier and distribution channel for all the new company’s products towards third parties with the exception of Volvo Cars which will source directly from the new company. Its management team will comprise of representatives from Autoliv and Volvo Cars.