At a press conference in Stockholm Volvo Cars CEO Håkan Samuelsson and Autoliv CEO Jan Carlson announced the formation of a new joint venture to begin in early 2017. Current Volvo Switzerland managing director Dennis Nobelius will be the CEO.
Samuelsson said of the venture that:
“This joint-venture goes beyond the traditional supplier-OEM relationship. It gives both Autoliv and Volvo full transparency into the technology.”
The new partnership does not yet have a name but will headquartered in Gothenberg in Sweden and an initial workforce of around 200 will be taken from both companies – but this expected to grow rapidly to around 600 staff.
The Volvo Autoliv venture will develop advanced driver assistance systems (ADAS) & autonomous drive (AD) technologies, creating a new entrant in the growing global market for autonomous driving software systems. It marks the first time that a leading car manufacturer has joined forces with a tier 1 supplier to develop such technologies.
The new company will develop 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 license and transfer the intellectual property for their ADAS systems to the joint venture, which 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.