Sweden’s Volvo Car Corp. and Autoliv Inc. are joining forces in the increasingly frenetic race to develop autonomous-driving technology, creating a new venture to develop software for sale to the industry at large.
Volvo, the China-owned luxury car maker, and Autoliv, a supplier of air bags and safety belts, said on Tuesday that the new company would start operations early next year to develop automated-driving and advanced driver-assistance systems for use by Volvo and other car makers.
Autoliv would have exclusive rights to sell the technology.
The new company, to be based in Gothenburg with an initial staff of 400, hopes to have its first driver-assistance systems ready for sale by 2019 and automated-driving technology by 2021, Volvo and Autoliv said.
Autoliv itself has a growing portfolio of products central to autonomous driving, including radar, cameras and sensors, mapping, and driver-assistance systems.
Volvo and Autoliv work together on an autonomous driving project with other public and private sector groups in Gothenburg. Autoliv joined the so-called Drive Me project late last year and the companies agreed to share research and development into safety technologies and engineers to push forward the introduction of active safety systems.
Volvo Car Corp. is owned by China’s Zhejiang Geely Holding Group Co. and isn’t affiliated with truck maker Volvo AB. -WSJ