The new autonomous driving company is a JV owned by Autoliv and Volvo Cars
Zenuity, the new joint venture between Autoliv and Volvo Cars, will develop advanced driver assist systems (ADAS) and autonomous driving (AD) technologies, and recently launched operations.
Autoliv announced it will make a total investment of around SEK 1.1 billion ($125 million) into the joint venture, the large majority of which is an initial cash contribution, but it also includes intellectual property and personnel. Volvo Cars will also contribute IP, its automotive expertise and personnel into the joint venture. Both companies own the joint venture 50/50. The formation of the JV was first announced in September last year.
“Zenuity will enable us to deliver world leading, robust solutions for autonomous driving. The combined experience of Autoliv, the worldwide leader in automotive safety systems, and Volvo Cars, the premium car maker, will ensure solutions that meet the needs of car occupants in real life road conditions,” said Jan Carlson, Chairman, President & CEO of Autoliv.
“In the last nine months we have worked hard to get Zenuity started and I am very pleased that we are now ready to start operations. The initial interest from automakers in Zenuity is very encouraging and we look forward to being a leader in the development of the next generation of safer and more automated cars,” said Dennis Nobelius, CEO of Zenuity.
Headquartered in Gothenburg, Sweden, and with additional operations in Munich, Germany, and Detroit, United States, Zenuity launched operations with an initial workforce of approximately 300 people. The joint venture’s workforce is expected to grow to more than 600 employees in the medium term.
Both Autoliv and Volvo Cars license will transfer intellectual property for their ADAS systems to the joint venture. From this base, Zenuity will develop new ADAS products and AD technologies. Zenuity is expected to have its first ADAS products available for sale by 2019 with AD technologies following shortly thereafter.
Autoliv is the exclusive supplier and distribution channel for all Zenuity’s products sold to third parties, while Volvo Cars can source such products directly from the joint venture.
Autoliv develops and manufactures automotive safety systems for all major automotive manufacturers in the world. Together with its joint ventures, Autoliv has close to 80 facilities with more than 70,000 employees in 27 countries.
