Mobileye, a leader in driver-assistance technologies, has decided to discontinue its aftermarket solutions division, which specializes in retrofitting vehicles with advanced driver assistance systems (ADAS). This decision comes after a detailed evaluation of the division’s future business prospects and the investments required to sustain operations.
Key Highlights:
- Mobileye to cease its aftermarket solutions operations due to decreasing demand for retrofitted ADAS as automakers integrate these technologies into new vehicles.
- Annual revenue for this unit has declined to about $40 million, failing to contribute positively to Mobileye’s profits.
- Approximately 130 employees worldwide to be supported during the transition, with a commitment to meet the needs of existing customers in the medium term.
- The focus shifts towards more advanced driver assistance and autonomous driving technologies, without expecting a material impact on Mobileye’s 2024 financial results.
As the automotive industry evolves, with a higher integration rate of ADAS in new vehicles, the demand for aftermarket solutions has significantly diminished. This shift has led to a substantial decline in revenue for Mobileye’s aftermarket solutions, making it unsustainable to continue the operation of this unit.
Prof. Amnon Shashua, President and CEO of Mobileye, expressed that this was a challenging decision, acknowledging the important role the aftermarket division played in Mobileye’s early success. “The IMS division…was an early driver of Mobileye’s leadership,” Shashua noted, emphasizing the division’s contribution to promoting road safety at a low cost.
The closure of the aftermarket solutions unit marks a strategic pivot for Mobileye, allowing the company to allocate resources more efficiently towards the development and deployment of cutting-edge driver assist and autonomous driving technologies. This decision aligns with Mobileye’s commitment to enhancing road safety and the overall driving experience through innovative solutions.
Despite this shift, Mobileye remains dedicated to supporting its employees affected by the closure and ensuring that the needs of existing IMS customers are met. The company’s ongoing projects, including the General Safety Regulation (GSR) solutions for commercial vehicle manufacturers, will continue as planned.
About Mobileye: Mobileye, renowned for its AI, computer vision, and autonomous driving technologies, has been a pivotal force in the adoption of ADAS. With its rich history of innovation since 1999, Mobileye has significantly contributed to the advancement of mobility solutions. Following its separation from Intel in 2022, Mobileye continues to pave the way for future mobility, backed by a legacy of over 170 million vehicles equipped with its technologies globally.
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