Zenuity - Autoliv and Volvo Cars' new autonomous driving JV

The joint venture, named Zenuity, will create a new entrant in the growing global market for autonomous driving software systems. And this is the first time a car maker has joined forces with a tier one supplier to develop new advanced driver assist systems (ADAS) and autonomous driving (AD) technologies. As part of the agreement Autoliv will make a total investment of around SEK 1.1 billion (EUR 115.16 million) into the joint venture, the large majority of which is an initial cash contribution, and which also includes certain assets. Volvo Cars will also contribute certain assets to the joint venture. The two companies will own the joint venture 50/50. Headquartered in Gothenburg, Sweden and with additional operations in Munich, Germany, and Detroit, USA, the initial workforce of around 200 people will come from Autoliv and Volvo Cars. The company is expected to grow to over 600 employees in the medium term. Operations are expected to start during the first half of 2017 – that is after approvals from relevant competition authorities in several countries have been obtained. Both Autoliv and Volvo Cars will license and transfer the intellectual property for their ADAS systems to the joint venture. 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.