Subsequent Events

3 Months Ended

Mar. 31, 2017

Subsequent Events [Abstract]

Subsequent Events

16 Subsequent Events

On April 18, 2017, the formation of the joint venture, named Zenuity, between Autoliv and Volvo Cars was completed. Autoliv made a total investment of around 1.1 billion SEK into the joint venture, the large majority of which was an initial cash contribution, but also included capital in-kind contribution of intellectual property, personnel and fixed assets. Volvo Cars contributed intellectual property, personnel and fixed assets into the joint venture. Headquartered in Gothenburg, Sweden with additional operations in Munich, Germany, and Detroit, USA, the workforce of close to 300 people includes employees transferred on the date of closing from each of Autoliv and Volvo Cars, respectively. The joint venture’s workforce is expected to grow to over 600 employees in the medium term. Zenuity is a new entrant in the growing global market for autonomous driving software systems. Autoliv is the exclusive supplier and distribution channel for all Zenuity’s products sold to third parties. Volvo Cars can source such products directly from the joint venture. Autoliv and Volvo Cars equally own 50% each of the shares in Zenuity AB and neither party has control. The Company will account for its 50% ownership in Zenuity AB as an equity method investment.

There were no other reportable events subsequent to March 31, 2017.