Autoliv Inc., a worldwide leader in automotive safety systems, finalized its joint venture with Nissin Kogyo to form Autoliv-Nissin Brake Systems (ANBS) on March 31. The company says the joint venture is an important milestone in Autoliv’s strategy to be a leader in safety systems for the future car market, as well as autonomous driving.
ANBS combines the current brake control business of Autoliv with a “carve-out” of Nissin Kogyo’s automotive braking business, according to the company. ANBS joins Nissin Kogyo’s expertise and technology in brake control and actuation systems with Autoliv’s global reach and customer base to create an offering competing in the growing global brake control systems market. The company also says the joint venture will further strengthen Autoliv’s role as a leading system supplier for autonomous vehicles.
ANBS will be part of Autoliv’s electronics business segment, consisting of passive safety electronics products, ADAS products and brake control systems. Autoliv owns 51 percent of the joint venture and has management and operational control. Autoliv will consolidate 100 percent of ANBS in its financial statements. Nissin Kogyo’s 49 percent share of the joint venture’s net income will be treated as a minority interest.
“Today is an important day for Autoliv. The formation of Autoliv-Nissin Brake Systems will allow us to offer state of the art brake control and actuation systems to auto manufacturers around the world. It will further enhance our role as the leading safety system supplier for the future car, well integrated with autonomous driving,” said Jan Carlson, Autoliv chairman, president and CEO.
Autoliv purchased 51 percent of the joint venture for 29.7 billion JPY (approximately $264 million USD), including pre-closing adjustments and subject to customary post-closing adjustments.
