Zenuity, the joint venture between Autoliv and Volvo Cars, starts its operations today. Zenuity is a new entrant in the autonomous driving software systems.
It marks the first time a car maker has joined forces with a tier one supplier to develop leading advanced driver assist systems (ADAS) and autonomous driving (AD) technologies.
“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.
“Volvo Cars combined its know-how with Autoliv’s to create a world leader in autonomous driving safety systems. With Zenuity starting operations we move a step closer to delivering this exciting technology,” said Håkan Samuelsson, President and Chief Executive Officer of Volvo Cars.
Autoliv and Volvo Cars own the joint venture 50/50. The formation of the joint venture was first announced in September 2016.
Headquartered in Gothenburg, Sweden and with additional operations in Munich, Germany, and Detroit, USA, the initial workforce of close to 300 people is from Autoliv and Volvo Cars as well as some new hires. The joint ventures workforce is expected to grow to over 600 employees in the medium term.
Both Autoliv and Volvo Cars license and transfer intellectual property for their ADAS systems to the joint venture. From this base, the joint venture 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.
The mission for Zenuity is to use the latest ADAS/AD know-how to create solutions that are at the technological forefront – for today and tomorrow. This will be achieved by utilizing extensive experience and real-life tested solutions.
The owners expect three elements of value creation. Firstly, the business model means the value of the joint venture will increase going forward. Secondly, for Autoliv this is a clear step in the development of its active safety focus. Thirdly, for Volvo Cars the joint venture ensures world leading competence in a key technology area.
Autoliv is the exclusive supplier and distribution channel for all Zenuity’s products sold to third parties, and there will be no exclusivity toward any customer or the owners. Volvo Cars can source such products directly from the joint venture.