Autoliv has announced a new, independent spin-off of its electronics business segment named Veoneer. Veoneer is created with the ambition to be a leading system supplier for ADAS and autonomous driving as well as a market leader in automotive safety electronics products.
When publicly listed, Veoneer’s offering will include safety electronics, sensors and software for active safety, advanced driver assistance systems (ADAS) and autonomous driving (AD) as well as advanced brake control solutions.
“Today, we have one of the broadest product portfolios in the market, and the ambition for Veoneer is to stay at the forefront of innovation in the current revolution of the automotive industry. Veoneer is prepared to take on the challenges of automation and human machine interaction as vehicles get increasingly intelligent. This development will greatly improve traffic safety and bring new levels of comfort and convenience to people in need of transportation,” continued Jan Carlson, President, Chairman and CEO of Autoliv.
After the spin-off, Autoliv’s current Passive Safety segment will continue to operate under the Autoliv name, with continued listings on the New York Stock Exchange and Nasdaq Stockholm.
The spin-off is expected to be completed during the third quarter of 2018 subject to market, regulatory and certain other conditions, including approval by Autoliv’s Board of Directors. There can be no assurance regarding the ultimate timing of the spin-off or that the spin-off will ultimately occur.
The reasons behind the company making this decision to separate its automotive electronics business are not known exactly but the companies make such moves in order to improve the management of their businesses by putting it under new management. It also helps the companies to strategize better as the two businesses may be having different sets of constraints and opportunities that can be dealt with properly separately. Along with these the companies also do so for better coverage from securities analysts and unlocking shareholder value.