Volvo Divests Stake in Zenuity for Self-Driving Development
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Introduction
Al-Futtaim Automotive, the exclusive distributor of Volvo cars in the UAE, has announced that Volvo Cars will separate its stake in Zenuity, a company focused on developing driver assistance and self-driving systems.
Details of the Separation
Zenuity will be split into two companies to maximize the benefits of its current advancements:
- Volvo Cars will own a new independent company that will concentrate on developing and marketing fully autonomous driving software.
- The second company, which will merge with Veoneer, a specialist in automotive safety equipment, will focus on the ongoing development and commercial marketing of advanced driver assistance systems.
Current Partnership
Zenuity is currently a 50-50 joint venture between Volvo Cars and Veoneer. Under this joint ownership, Zenuity has developed a robust software platform to provide advanced driver assistance systems and self-driving technologies.
Operational Transition
According to the agreement, Zenuity’s operational activities and staff will be transferred as follows:
- Operations in Gothenburg, Sweden, and Shanghai, China, will move to the new Volvo Cars-owned company.
- Operations in Germany and the United States will transition to Veoneer.
Future Focus
Zenuity - Volvo Cars will concentrate on developing a fully autonomous driving program, which will be launched in the next generation of Volvo cars based on the SPA2 platform. The new company will remain separate from Volvo Cars and will manage its distribution channels independently.
Statements from Officials
Commenting on this move, Håkan Samuelsson, CEO of Volvo Cars, stated:
"Volvo Cars reaffirms its commitment to launching the next generation of fully autonomous vehicles. To achieve this, we've directed the new company's focus entirely on this aspect."
Additionally, Dennis Nobelius, CEO of Zenuity, remarked:
"The new company will work on developing self-driving technologies that are safer and more advanced. We intend to create one of these exceptional platforms."
Anticipated Start
It is expected that the new company will commence operations later in the third quarter of 2020.
