Autoliv, Inc., a provider of automotive safety systems and Volvo Cars, a global car maker, announced Tuesday that they have signed a letter of intent to form a new jointly-owned company to develop next generation autonomous driving software.

The new company, which has yet to be named, will develop ADAS and AD systems for use in Volvo Cars and for sale exclusively by Autoliv to all car makers globally, with revenues shared by both companies.

Both Autoliv and Volvo Cars will provide intellectual property for their ADAS systems to the joint venture. From this base the company will develop new ADAS technologies and AD systems. The new company is expected to have its first ADAS products available for sale by 2019 with AD technologies available by 2021.

Autoliv will be the exclusive supplier and distribution channel for all the new company’s products towards third parties, except Volvo Cars which will source directly from the new company. Its management will be comprised of representatives from Autoliv and Volvo Cars. Dennis Nobelius, Managing Director of Volvo Switzerland and formerly Vice President Vehicle line 90 at Volvo, will be the Chief Executive Officer of the new joint venture.

“This new company is a recognition of the fact that autonomous driving is the next step to transform road safety,” said Jan Carlson, Chairman, Chief Executive Officer & President of Autoliv.

The planned new company will have its headquarters in Gothenburg, Sweden, and an initial workforce taken from both companies of around 200, increasing to over 600 in the medium term. The company is expected to start operations in early 2017.