Volvo and Autoliv recently announced that they will join forces to roll out autonomous driving software as carmakers across the globe race to embrace the self-driving systems.

In separate statements, the two Swedish companies confirmed that the new enterprise would start with a work force made from 200 staff belonging to both parent companies. On the medium term, the joint venture's number of employees will reach more than 600 workers.

Volvo and Autoliv aim to have their partnership's headquarters in Gothenburg, Sweden, but the new entity still lacks a name. What is known, however, is that it will deliver autonomous drive (AD) and advanced driver assistance systems (ADAS) that will first be deployed in Volvo Cars.

Insiders from the companies point out that the technology should start rolling out at the debut of 2017, and note that Autoliv maintains the right to sell it to global vehicle manufacturers. The revenue obtained from this side of the business will be shared with Volvo, sources say.

Håkan Samuelsson, Volvo Cars' Chief Executive, points out that by merging the resources and know-how of the two companies, the new entity has all the assets to become "a world leader in AD software development."

He adds that one immediate advantage would be that new technology could reach customers way faster than before.

Volvo's partnership with Autoliv is the latest in the carmaker's initiatives to secure a leading role for itself in an industry where self-driving technology is becoming commonplace.

In August, Uber and Volvo signed a deal for $300 million to create a fleet of self-driving cars. To boost the efforts in this direction, Volvo announced that it is planning to bring 400 engineers on board, with most of them taking jobs in software development. This is one of the most consistent recruitment moves of the Swedish car company.

Meanwhile, Autoliv and Volvo said that the first ADAS products sprouting from their cooperation should be available for purchase in 2019, with AD technology expected to hit the streets by 2021.

Volvo Cars made a name for itself for being one of the safest car builders in the world. The company is keeping true to its creed of crafting world-leading active and passive safety systems. Insiders from the carmaker affirmed that the medium to long-term goal of the company is to have no victim or serious injury involving new Volvo cars by 2020.

Volvo is part of the Chinese Zhejiang Geely Holding Group Co.