The planned, yet to be named new company, will have its headquarters in Gothenburg, Sweden, and is expected to start operations in 2017. An initial workforce of 200 will drawn from both the companies, which would be increased to over 600, over the the period of time.
Both Autoliv and Volvo Cars will provide intellectual property to the joint venture, which will develop Advanced Driver Assist Systems (ADAS) and Autonomous Driving (AD) systems for use in Volvo Cars and for sale exclusively by Autoliv to all car makers globally, with revenues shared by both companies. The new company is expected to have its first ADAS products available for sale by 2019 with AD technologies available by 2021.
Jan Carlson, Chairman, Chief Executive Officer & 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.”
Håkan Samuelsson, President & Chief Executive Officer of Volvo Car Group, 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 non-binding letter of intent is subject to further negotiations and the parties reaching a final definitive agreement, and there is no guarantee that any definitive agreement will be reached or that the forming of the joint venture contemplated by the non-binding letter of intent will occur.
