Volvo Cars and automotive safety system supplier Autoliv have formally agreed to establish a joint venture focused on developing software for autonomous driving and driver assistance systems, Volvo said.
Named Zenuity, the joint venture represents “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,” Volvo said in a released statement.
Autoliv’s involvement will include cash investment (1.1 billion Swedish Krona), but Volvo’s contribution will not. The automaker said it will “contribute certain intellectual property assets and human resources to the joint venture, but no cash.” The companies will share ownership, split 50/50.
Zenuity will be headquartered in Gothenburg, Sweden, but will also have operations in Munich, Germany, and Detroit. The initial workforce of 200 people will come from both Volvo Cars and Autoliv.
Zenuity is expected to grow to more than 600 employees. Operations are due to start during the first half of 2017, Volvo said.