PARIS - IBM Corp. and French supplier Valeo SA are joining forces in a bid to enhance the reliability of embedded software and rid cars of crippling electronic faults.
The two companies are creating a division with 80 engineers coming from both companies to achieve top reliability and safety for automotive software.
The project will start in July. It is set to last five years but could be extended, says IBM spokeswoman Carla Egleder.
For IBM, which sees the automotive industry as a growth area, the project with Valeo is the first of such magnitude, Egleder says. But she declined to put a figure on IBM's investment in the operation.
The initiative comes as carmakers are increasingly worried about the high cost of recalls because of electronics problems.
According to a report from Roland Berger Strategy Consultants, more than half of today's warranty costs can be traced to software and electronics problems.