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Autoliv says sees no change in Zenuity JV cost level in 2018
April 28, 2017 / 5:24 PM / 9 months ago

Autoliv says sees no change in Zenuity JV cost level in 2018

STOCKHOLM, April 28 (Reuters) - Stockholm-based auto safety gear supplier Autoliv <ALIVsdb.ST said on Friday that the cost for its newly launched autonomous driving software systems joint venture with Volvo Cars, Zenuity, would remain on roughly the same level in 2018 as in 2017 • ”We see that our gross costs for the Zenuity joint venture will be about the same in 2018 as in 2017;” Autoliv spokesman Thomas Jonsson told Reuters. • Current cost level is around $15 million per quarter • ”The reason that the cost doesn’t go up despite increasing headcount in Zenuity is that we are currently occurring high start up costs which will disappear over time, ” Jonsson added. • Zenuity currently has around 300 staff, and wants to double to 600 employees in the mid-term. • Autoliv’s Swedish Depository Receipts closed down 5.5 pct in Stockholm on Friday after the company reported a bigger-than-expected rise in quarterly earnings but flagged uncertainty about global vehicle production ahead, • The SDR’s extended their drop during a conference call earlier on Friday, where there was much discussion around Zenuity, and several analysts appeared worried that the costs would rise next year along with higher staffing levels. • Autoliv’s U.S-listed shares were down 6.4 percent at 1719 GMT (Reporting by Johannes Hellstrom, writing by Johan Ahlander)

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