Veoneer will cooperate with Qualcomm Technologies on developing software for its driver assistance systems, the auto technology firm said on Thursday, sending its shares sharply higher.
FILE PHOTO: Jan Carlson, CEO of Veoneer, Inc., watches as his company’s stock begins trading on the floor of the New York Stock Exchange (NYSE) in New York, U.S., July 2, 2018.
STOCKHOLM: Veoneer will cooperate with Qualcomm Technologies on developing software for its driver assistance systems, the auto technology firm said on Thursday, sending its shares sharply higher.
The Swedish maker of vision systems, radar and software for advanced driver-assistance systems (ADAS) said it had signed a non-binding letter of intent with the U.S. firm and expected to finalise a definitive agreement in the second half of this year.
Shares in Veoneer listed in Stockholm were up 16.1per cent at 111.70 crowns (US$12.80) at 1247 GMT. Its U.S.-listed shares, set for the best session in over five months, were down nearly 30per cent this year as of Wednesday’s close.
Veoneer, which competes with companies such as Aptiv, Bosch and Continental, has been hit hard by the coronavirus pandemic as the car industry has seen 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 automotive Tier 1 suppliers or directly to original equipment manufacturers (OEM) 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,” Veoneer CEO and Chairman Jan Carlson said in a statement.
The company, which supplies carmakers such as Daimler, and Honda, said last month it expected sales this year to outpace light-vehicle production.
(US$1 = 8.7265 Swedish crowns)
