Veoneer will partner with Qualcomm Technologies on developing software for its driver assistance systems, the auto technology supplier said Thursday.
The Swedish supplier of vision systems, radar and software for advanced driver-assistance systems said it had signed a non-binding letter of intent with the U.S. technology company and expected to finalize a definitive agreement in the second half of this year.
Veoneer's software development strategy, increasingly important with the auto industry in the midst of a rapid transformational shift, has been under scrutiny since it ended its Zenuity software joint venture with Volvo Cars in April.
"This is a significant event for Veoneer which we are very happy to announce," CEO Jan Carlson told Reuters, adding that he expected the integrated software and system-on-a-chip platform would generate major interest from customers.
Veoneer, which competes with companies such as Aptiv , Bosch and Continental, has been hit hard by the coronavirus pandemic as the auto industry saw production halted in many markets by widespread lockdowns.
Veoneer said in a statement it would develop an integrated platform with Qualcomm to be available through Tier 1 suppliers or directly to automakers for 2024 vehicle production.
"This relationship not only strengthens our product portfolio, but also broadens our go-to-market position and opportunities, while giving customers more ways to access world-leading technology," Carlson said in a statement.
The company, which supplies automakers such as Daimler, Ford and Honda, said last month it expected sales this year to outpace light-vehicle production.