Chinese-ownedVolvo Cars and theSwedishbased automotive safety groupAutoliv Inc say they are creating a jointly-owned company to develop autonomousdriving software.
The carmaker said on Tuesday the newcompany, which has yet to be named, will develop advanced driver assistance systems and autonomous driving systems. It will begin operations in Gothenburg, Sweden, early next year.
The systems will be used by Volvo and offered for sale to other automakers. Volvo andAutoliv will split the profits fromthose sales. The company plans to offer driver assistance systems by 2019 and autonomous driving systems by 2021.
“This newcompany is a recognition of the fact that autonomousdriving is the next step to transformroad safety,” AutolivCEOJan Carlson said in a statement.
Karl Brauer, senior analyst forKelley Blue Book, said the partnershipmakes a lot of sense. Volvo has someof themost advanced driver assistance systems on themarket, whileAutoliv has advanced sensor technology. Volvo also has Chinese financial backing, and China is expected to be a topmarket for self-driving technology because of its urban density.
“This is a powerful combination of automotive entities, and these types of alliances are needed to have a fighting chance in this increasingly frenetic race for the autonomous car,” Brauer said.
The alliance is one of many announced recently in the self-driving sphere. Last month, Volvo Cars announced itwould team up with ride-sharing company Uber to develop nextgeneration driverless cars in a $300 million project.