Volvo, Autoliv to form self-driving auto software company

Volvo, like many of its competitors, has been increasing its activities in software development to be ready to manage ever more complex driver assistance systems.

Hot on the heels of its new agreement to work with Uber, Volvo has now announced that it will be forming a joint venture company with Autoliv to develop autonomous driving software.

Along with placement in Volvo cars, Autoliv will be selling the systems to automakers globally, with revenues shared by both companies, according to their company announcements.

Uber will outfit 100 Volvo XC90 plug-in hybrids by the end of the year with autonomous driving technology it has developed in house. On the medium term, the joint venture’s number of employees will reach more than 600 workers. “It will mark the first time a leading premium carmaker has joined forced with a tier-one supplier to develop new advanced drive assist systems and autonomous driving technologies”. It will begin operations in Gothenburg, Sweden, early next year.

Interestingly, Volvo plans to make the technology available to other auto makers.

Volvo CEO Hakan Samuelsson said the cooperation will speed up the introduction of new autonomous-driving technologies.

In the venture with Autoliv, the two companies plan to share revenue.

The new company expects to have its first ADAS products available by 2019 with AD technologies available by 2021.

Both firms will transfer the intellectual property for their respective driver assistance systems (ADAS) to the new venture, while Dennis Nobelius – who was vice president on the Volvo Series 90 line, including the 2017 Volvo S90 and 2018 Volvo V90 we drove back in June – will be chief executive of the newly-formed company.

Volvo Car Corp.is owned by China’sZhejiang Geely Holding Group Co. and isn’t affiliated with truck maker Volvo AB.

The non-binding letter of intent is subject to further negotiations and both parties reaching a final definitive agreement, but there’s no guarantee any definitive agreement will be reached.