Autoliv (ALV), Volvo Cars Enter Autonomous Driving Joint Venture
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Autoliv, Inc. (NYSE: ALV) and Volvo Cars have signed a letter of intent to form a new jointly-owned company to develop next generation autonomous driving software.
The planned new company will have its headquarters in Gothenburg, Sweden, and an initial workforce taken from both companies of around 200, increasing to over 600 in the medium term. The company is expected to start operations in early 2017.
Once finalized, the joint venture will be a new entrant in the growing global market for autonomous driving software systems. It will mark the first time a leading premium car maker has joined forces with a tier one supplier to develop new advanced driver assist systems (ADAS) and autonomous driving (“AD”) technologies.
The new company, which has yet to be named, will develop ADAS and 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 joint venture will bring together two global leaders in automotive safety, underlining the contribution ADAS and AD can make to road safety and accelerating the development and introduction of fully autonomous cars.
Autoliv is the world’s leading supplier of safety systems to car makers worldwide and has led the way in the development and introduction of active and passive safety technologies to the world’s car makers for more than 60 years.
Volvo Cars has an established reputation for making some of the world’s safest cars, having invented the three point safety belt and consistently developed and introduced world leading active and passive safety systems. It has a medium term vision that no one will be killed or seriously injured in a new Volvo by 2020.
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.”
Both Autoliv and Volvo Cars will provide intellectual property for their ADAS systems to the joint venture. From this base the company will develop new ADAS technologies and AD systems. The new company is expected 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 be comprised of representatives from Autoliv and Volvo Cars. Dennis Nobelius, Managing Director of Volvo Switzerland and formerly Vice President Vehicle line 90 at Volvo, will be the Chief Executive Officer of the new joint venture.
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.
Photos are available at http://news.cision.com/se/autoliv
This information is information that Autoliv, Inc. is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the contact person set out above, at 11:00 CEST on September 6, 2016.
Autoliv and Volvo Cars invite you to a press conference
Jan Carlson, Chairman, President and Chief Executive Officer, Autoliv, and Håkan Samuelsson, President and Chief Executive Officer, Volvo Car Group, will host a joint press conference. Please note that no interviews will be made prior to the press conference.
Tuesday, September 6th at 15.00 CEST (i.e. 14:00 UK Time, 09:00 am ET)
Conference & Events 7A Centralen
Address: Vasagatan 7A, 3rd floor, Stockholm
|Attend the Press conference:|
|Attend the Webcast:|
Follow the link on www.autoliv.com
|Attend by phone:||To participate in the Q&A session, please dial in 5-10 minutes prior to the start time:|
|National free phone - United Kingdom:||0800 279 5004|
|National free phone - United States of America:||1-877-280-2296|
|National free phone - Sweden:||0200 883 440|
+44(0)20 3427 1917
An audio replay will be available after the conference on www.autoliv.com until September 12, 2016.
A transcript of the press conference will be available on www.autoliv.com under the Investors section, Presentations & Transcripts.
Slides related to this press conference will be posted to Autoliv’s website at www.autoliv.com under the Investors section, Presentations & Transcripts.
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