Volvo Cars and auto safety group Autoliv team up to develop autonomous driving

Chinese-owned Volvo Cars and the Swedish-based automotive safety group Autoliv Inc say they are creating a jointly-owned company to develop autonomous driving software.

The carmaker said on Tuesday the new company, 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 and Autoliv will split the profits from those sales. The company plans to offer driver assistance systems by 2019 and autonomous driving systems by 2021.