DETROIT—Nexteer Automotive Corp. and Continental Automotive Systems Inc. will form a joint venture to supply safety systems for autonomous cars.
In an announcement Tuesday at the North American International Auto Show at Cobo Center in Detroit, the companies said the joint venture will begin operation in the first quarter of this year, pending regulatory approvals, and likely will be headquartered in Michigan.
Continental and Nexteer are based in Auburn Hills. It's unclear where in Michigan the joint venture will be located, but both parties are in discussions with the state about location. Whether the opening of the joint venture will be supported by local and state tax incentives is also unknown at this time.
The 50/50 joint venture will focus on research and development and prototyping of systems using Nexteer's advanced steering technologies with Continental's braking and autonomous systems, such as radar and lidar.
"This arrangement will create a way for both of our companies to collaborate on integrating state-of-the-art electronic brake and steering systems to achieve ideal vehicle dynamics and safety, as well as increasing value for our shareholders," Frank Lubischer, senior vice president of global engineering, chief technology officer and chief strategy officer for Nexteer, said in a news release.