Volvo, Veoneer to Split Zenuity Software JV
Veoneer gets ADAS business, Volvo takes autonomous vehicle tech
Volvo and Veoneer have agreed to dissolve their 3-year-old Zenuity joint venture to allow the partners to better focus their individual efforts regarding automated vehicle technologies.

Image: Volvo
Zenuity’s operations basically will be split in two. Volvo will get everything related to the development of “unsupervised” fully autonomous vehicle systems; Veoneer will take over Zenuity’s advanced driver-assist system (ADAS) business.
The divestiture is expected to be completed in the third quarter. As part of the deal, Veoneer will receive a one-time payment of about $15 million.
Volvo Side
The Swedish carmaker will take over Zenuity’s development centers in Gothenburg, Sweden, and Shanghai and make them part of a new stand-alone company owned by Volvo.
The Level 4-capable self-driving software that results will debut in the next generation of cars based on Volvo’s SPA2 platform. Volvo aims to introduce the technology within the next several years.
What Veoneer Gets
Veoneer, which was formed in early 2018 when Autoliv spun off its electronics business, will integrate Zenuity’s ADAS business into its own operations. This includes more than 200 software engineers at Zenuity’s development centers in Novi, Mich., and Munich.
The new structure is expected to save Veoneer more than $30 million per year.
Veoneer aims to build a scalable ADAS platform that can used in a wide range of applications. The supplier expects to derive more than 90% of its business from ADAS by the end of the decade.
The company, which has struggled financially since splitting from Autoliv, sold its 51% stake in a braking joint venture last October to Honda and Nissin-Kogyo for $176 million.
RELATED CONTENT
-
Kroger Tests Self-Driving Grocery Delivery Service
The Kroger Co. and Silicon Valley startup Nuro launched a pilot program for autonomous grocery delivery this week in Scottsdale, Ariz.
-
Toyota Finds a Mystery in Occupant Safety for Self-Driving Vehicles
Toyota Motor Co. says its study of how people in self-driving cars react to a near crash proves it will take far more research to improve the safety of occupants in such vehicles, Automotive News reports.
-
On Ford Maverick, Toyota Tundra Hybrid, and GM's Factory Footprint
GM is transforming its approach to the auto market—and its factories. Ford builds a small truck for the urban market. Toyota builds a full-size pickup and uses a hybrid instead of a diesel. And Faurecia thinks that hydrogen is where the industry is going.