Code Takes the Wheel as Harman Pushes Deeper Into Vehicle Safety

Harman’s driver assistance deal reflects the global shift toward software-defined vehicles and why automakers increasingly favor fewer, larger technology partners

6 Jan 2026

Power in the car business once came from engines and gearboxes. Today it increasingly comes from code. A deal announced this week, Harman’s agreement to buy a major driver-assistance business from ZF Group, shows how far that shift has gone.

The assets at the centre of the transaction help cars see and react. Cameras, radar and software enable functions such as automatic emergency braking and lane keeping. What began as premium extras are becoming basic expectations. Regulators in Europe, America and parts of Asia now require more active safety systems, pushing advanced driver assistance close to a legal minimum.

For Harman, best known for infotainment and in-car connectivity, the purchase is a calculated stretch. Safety software is no longer a bolt-on. It shapes vehicle design, determines how electronics are arranged and influences how carmakers set their models apart. Owning that layer brings a supplier closer to the heart of the vehicle.

The deal fits a broader move towards the “software-defined vehicle”. Instead of dozens of separate electronic control units, carmakers are consolidating functions onto shared computing platforms. Consultants argue that this favours suppliers able to deliver large, integrated systems. Fewer interfaces reduce complexity, speed development and allow updates long after a car leaves the factory.

ZF’s decision to sell is less a retreat than a refocusing. The German group has been sharpening its attention on hardware-heavy strengths such as chassis systems and electrification. Letting go of a software-intensive unit trims its portfolio while leaving room for partnerships without the burden of ownership.

The consequences will be felt well beyond the two firms. As big suppliers bulk up, smaller software specialists face tougher competition. Carmakers may enjoy simpler supply chains and faster innovation, but at the cost of relying on a narrower set of powerful partners.

Risks remain. Integrating safety-critical software is hard, and regulators are still working out how to oversee systems that evolve through updates. Yet the direction of travel is clear. As cars turn into rolling computers, control over the digital core is becoming the industry’s most valuable asset.