Volvo cars has announced a new 50-50 joint venture with Veoneer. The new announcement comes following the splitting of Zenuity, the assisted and autonomous driving software development company, into two parts.

One part, which continues as Zenuity, will now be a new stand-alone company focusing on the development and commercialisation of unsupervised autonomous drive software, and will be owned by Volvo Cars. The second part will focus on the continued development and commercialisation of advanced driver assistance systems and will be integrated into automotive safety equipment company, Veoneer.

As part of the new joint venture, Zenuity's operations and people based in Gothenburg, Sweden, and Shanghai, China, will be transferred to the new company to be owned by Volvo Cars. The operations and people based in Germany and the U.S.A, meanwhile, will be transferred to Veoneer. Volvo Cars' part of Zenuity will focus on the development of unsupervised autonomous drive software that will be introduced in the next generation of cars based on Volvo's Scalable Platform Architecture 2 platform.