© Volvo Cars
The Swedish automaker Volvo has decided with its partner Veoneer to separate the activities of its branch dedicated to autonomous driving. Called Zenuity, it will give birth to a new company that will always depend on Volvo.
The manufacturer will focus on the development of autonomous driving software, while Veoneer will remain in the design of driver assistance equipment.
Separate driving assistance from autonomous driving
Veoneer is one of the world leaders in the design of driver assistance software and equipment. It supplies a host of manufacturers, including Mercedes, Volkswagen, Ford and Honda. For its part, Volvo is already well engaged in the autonomous driving segment: last year, the brand announced a partnership with NVIDIA for the equipment of autonomous trucks, which have started their tests in Sweden.
The two companies also announced last year that a reorganization of Zenuity, which is owned equally by them, is planned. Currently, the brand is developing driver assistance software (ADAS systems) and others dedicated to autonomous driving. According to the press release, it is this dual activity that will be separated. Zenuity will stay with Veoneer and focus on driver aids. The new company, which will depend on Volvo, will focus " on the development and marketing of unsupervised autonomous driving software "
Optimization according to Veoneer
The press release also gives details on the distribution of Zenuity's assets: As part of this agreement, Zenuity's operations and staff based in Gothenburg, Sweden and Shanghai, China will be transferred to the new company, which will be owned by Volvo Cars. Operations and people based in Germany and the United States will be transferred to Veoneer " Of the 800 employees at Zenuity, Volvo will retain 600.
Henrik Green, Volvo technical director, added to Reuters: " This means that we will buy today's systems (ADAS) in a more traditional supplier relationship. But in terms of development, we now want to focus on the next generation of products " He also specified that the personnel and installations recovered from Zenuity will be used for the development of software to be introduced on the SPA2 platform of the manufacturer from 2022.
For his part, Veoneer, who is currently in deficit, believes that this new distribution will help him to raise the bar and " more effectively manage its commercial strategy " The company hopes to save between $ 30 million and $ 40 million a year.
Source: Reuters and CleanTechnica