Geely, China’s automotive company has awarded Zenuity, the joint venture between Swedish technology group Veoneer and Geely’s subsidiary Volvo Car, as its supplier for assisted and self-driving software.
According to Reuters, Geely’s deal consisting of car brands namely Geely Auto, Volvo performance brand Polestar, subscription-based electric carmaker Lynk & Co and British sports car maker Lotus, provided Zenuity with a welcome boost.
Financial terms regarding the deal have not been revealed by Zenuity.
In April 2019, Veoneer commented that it was conducting a review of Zenuity’s new ADAS software system which was developed to assist driving features such as lane keeping and autonomous driving (AD), pilot assist, collision avoidance, connected safety.
Zenuity’s Chief Executive Dennis Nobelius said the deal with Geely was a major win for Zenuity because only 3-5 first generation self-driving software platforms would survive to the end of the next decade, compared to the more than 40 CB Insights estimates exist now.
“Our plan is clear, that we want to be one of those,” he told journalists.
“We have a number of RFQs (request for quotation) at this moment for ADAS and we’re discussing deeper relations when it comes to the AD part.”
Founded in 2017 by Volvo which is Geely’s subsidiary since 2010, Gothenburg-based Zenuity is a developer of software for self-driving cars (Autonomous Driving, AD) and driver-assisting technology (ADAS, Advanced Driver Assistance Systems).
With more than 600 employees in Sweden, Germany, USA and China, Zenuity plays a significant role in self-driving technology as it recently won approval to begin hands-free testing on Volvos on Swedish highways.
Erik Coelingh, technology advisor at Zenuity said Zenuity’s advantage came from the fact that it had products for both ADAS and AD.
“Exactly when AD will come in large volume is relatively uncertain, but until cars drive themselves then you will have ADAS,” Coelingh said.
“So the fact that we have both really is a very good position to be in this uncertain market.”