We expect global automobile makers’ adoption of advanced driver-assist systems, highly automated driving, and automated driving technologies to support average annual revenue growth for Veoneer (VNE) of roughly 12% for the next 10 years. We think Veoneer has positioned itself as an integrator of technologies that are required as standard equipment by governments’ new-car assessment programs. Advanced driver-assist technologies enable automakers’ vehicles to receive coveted 4- and 5-star crash test ratings.
In 2016, the National Highway Traffic Safety Administration said that a total of 20 automakers had voluntarily agreed to equip all new passenger vehicles by September 2020 with low-speed automatic emergency braking, which includes forward collision warning, both of which are advanced driver-assist technologies. In a progress report at the end of 2017, NHTSA said that 4 of 20 automakers had made automatic emergency braking standard equipment on more than 50% of their 2017 model year vehicles, while another 5 said that 30% of their vehicles produced in 2017 were equipped with automatic emergency braking.
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Richard Hilgert does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.