Volvo Cars takes full ownership of its driverless software subsidiary

Volvo Cars has taken 100 per cent ownership of its autonomous driving (AD) software development subsidiary, Zenseact, as part of continued restructuring. Previously the company owned 86.5% in a joint venture with Ecarx, headquartered in China, and has paid $115m for the remaining stake. This values the subsidiary at $851m, a key marker in the value of AD software firms…

The acquisition of the 13.5 per cent stake is a strategic step to owning more of the software powering key functionality going into future cars and supports Volvo Cars’ strategic direction to be a leader in new technology, backed by Chinese car maker Geely.

The deal simplifies Zenseact ownership, making the AD software company a fully owned subsidiary that will operate as a standalone company and lead development of safety-, advanced driver assistance- and autonomous driving technologies for introduction first in Volvo and Polestar cars.