Geely-run Volvo Cars and auto tech supplier Veoneer will split their jointly owned software enterprise Zenuity as the Swedish car manufacturer focuses on building self-driving software, the businesses said Thursday.
Volvo and Veoneer stated in 2019 they had been conducting a strategic review of Zenuity, which develops software for advanced driver help systems (ADAS) and autonomous driving, in part attributable to a wider introduction of self-driving vehicles being pushed further into the future.
Under the new settlement, Veoneer will combine the current Zenuity enterprise focused on ADAS software, while Volvo Cars will establish a new stand-alone firm to take over Zenuity’s development and commercialization of unsupervised autonomous drive software.
Volvos’ part of Zenuity will focus on software that will likely be introduced in the next-generation of automobiles based on Volvo’s SPA2 car architecture platform, coming out from around 2022, Green added.
The settlement will see about 600 of the current 800 Zenuity staff and consultants transfer to the new Volvo Automobiles-owned firm, with the rest shifting to Veoneer.
Veoneer, which build radars and vision programs and expects 90% of its available market to be for superior driver assistance systems (ADAS) in the next decade, stated the move would help it drive its business strategy more effectively.