Volvo Cars has agreed to join forces with automotive safety company Autoliv to create autonomous cars.

In a statement, Volvo revealed that the two companies plan to collaborate in a new jointly owned company to develop autonomous driving software.

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This comes just weeks after Volvo announced a partnership with Uber to supply a self-driving fleet in Pittsburg, USA.

The joint company is expected to start operations in early 2017, and will be headquartered in Gothenberg, Sweden. Dennis Nobelius, managing director of Volvo Switzerland, will be chief executive.

The premises will be home to an initial workforce of 200 people drawn from both companies, with plans to increase to 600 in the medium-term.

The two companies will work together in a bid to develop advanced driver-assistance systems (ADAS) and autonomous drive (AD) systems to be used in Volvo cars.

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The systems will also be sold by Autoliv to other carmakers, with the revenues split with Volvo.

Håkan Samuelsson, president and chief executive of Volvo Cars, said: “By combining our know-how and resources, we will create a world leader in AD software development. This means we can introduce this exciting technology to our customers faster.”

Jan Carlson, chairman, chief executive, and president of Autoliv, said: “There are no two companies that can claim to have done more for automotive safety worldwide than Autoliv and Volvo.

“This new company is recognition of the fact that autonomous driving is the next step to transform road safety.”