Volvo and Autoliv launch Zenuity
Volvo Cars and Autoliv will create a joint venture to develop to software for autonomous driver and driver assistance solutions.
It marks the first time a leading premium car maker has joined forces with a tier one supplier to develop new advanced driver assist systems (ADAS) and autonomous driving (AD) technologies.
Called Zenuity and based in Gothenburg with other sites in Munich and Detroit, the new venture will be jointly owned by Volvo and Autoliv.
Autoliv will make a total investment of around 1.1bn SEK into the joint venture while Volvo will contribute certain intellectual property assets and human resources to the joint venture, but no cash.
With a workforce of 200 expected to treble in the medium term, Zenuity is expected to begin operations during the first half of 2017. Both Volvo Cars and Autoliv will license and transfer the intellectual property for their ADAS systems to the joint venture. From this base, the company will develop new ADAS products and AD technologies. The new company is expected to have its first driver assistance products available for sale by 2019 with autonomous driving technologies following shortly thereafter.
Autoliv will be the exclusive supplier and distribution channel for all the new company’s products sold to third parties, and there will be no exclusivity toward any customer or the owners. Volvo Cars will source such products directly from the new joint venture.
As previously announced, Dennis Nobelius will be the Chief Executive Officer of the joint venture. The joint venture will be governed by a separate board of directors, and independently operate within its own facilities.