Mobileye has announced the closure of its aftermarket solutions division, which offers retrofitted advanced driver assistance technology, resulting in the termination of about 130 employees, with 90 of them based in Israel.
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In an official statement, Mobileye explained that it has decided to discontinue its aftermarket solutions division following a comprehensive assessment of its business outlook and investment requirements. While the company did not disclose the financial implications of the shutdown, it said that it was not anticipated to affect its 2024 financial performance.
The stated reason for this move was that automakers and other vehicle manufacturers have steadily increased the rate at which integrated ADAS solutions are installed on new vehicles, meaning that the demand and future addressable market for retrofitted ADAS solutions has declined. As a result, this division has seen its revenues decline meaningfully, to roughly $40 million on an annual basis, and in recent years has not positively contributed to Mobileye's profitability.
“This was a very difficult decision,” said Prof. Amnon Shashua, President and CEO of Mobileye. “The IMS division, formerly known as Aftermarket, was an early driver of Mobileye’s leadership, demonstrating that road safety can be effectively delivered at a low cost, a key catalyst for increasing adoption of ADAS technologies on new vehicles. Unfortunately, the success of Mobileye’s built-in ADAS solutions has diminished the opportunities for retrofit solutions to the point where it is no longer viable to continue the retrofit solutions activity.”