Dollar Sale at Veoneer
Veoneer, maker of software and hardware for advanced driver-assist features, has sold its brake business to ZF for one dollar.
The sale, which Veoneer says will narrow its negative cash flow through 2021, is an obvious move to further focus on the company’s core businesses. The unit was spun off from safety systems supplier Autoliv two years ago.
Veoneer obstacle detection system (Image: Veoneer)
Last October, Veoneer sold off its 51% stake in a 3-year-old brake systems venture with Honda and Nissin-Kogyo for $176 million. In April the company and partner Volvo dissolved Zenuity, their 3-year-old software business. Veoneer absorbed the venture’s ADAS business, along with 200 software engineers, and Volvo took the advanced autonomous vehicle assets.
Veoneer has been struggling financially since its independence. The company narrowed its second-quarter operating loss to $64 million from $137 million a year earlier, largely through staff cuts and reductions in product development spending.
Recovery on Track
The COVID-19 pandemic slashed quarterly revenue more than 60% to $184 million as new business plummeted 50%. Through it all, Veneer was able to launch next-generation vision, radar and active safety products.
The company also expects to meet its cost-cutting goals for 2020.
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