Mobileye (MBLY) to Wind Down Aftermarket Solutions Unit

Mobileye has chosen to wind down its aftermarket solutions unit that provides retrofitted advanced driver assistance technology, after a thorough review of this unit’s business prospects and investment needs.

As automakers and other vehicle manufacturers have steadily increased the rate at which integrated ADAS solutions are installed on new vehicles, 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 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.”

This move will focus Mobileye’s resources on the tremendous opportunities for delivering more advanced forms of driver assist technologies and autonomous driving. The company will work to support about 130 employees affected by the shutdown worldwide over the near-term and remains committed to satisfying the needs of existing IMS customers over the medium-term. Mobileye will also continue offering and servicing customers of its General Safety Regulation (GSR) solutions for commercial vehicle manufacturers.

This action is not expected to have any material impact on Mobileye’s 2024 results.

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