Automakers are joining forces with suppliers and technology companies to develop self-driving systems out of fear that autonomous vehicles may not be as profitable as first expected, Reuters reports.
As recently as 12 months ago, most major automakers were developing autonomous technologies in house for future models but more recently, many companies have altered their plans and instead formed technology alliances to spread the cost and burden of developing these systems.
A board member from a major German carmaker told Reuters in anonymity that the autonomous market “may not be worth the scale of the investments currently being sunk into it,” hence why carmakers are looking to lighten their loads.
Last year, BMW announced an alliance with Intel and Mobileye to develop autonomous vehicle software and according to the brand’s vice president of autonomous driving projects, Klaus Beuttner, forming such a partnership was a necessity.
“Sitting at other companies, one rattles off the technological challenges and safety aspects, and you come to realize that many of us are swimming in the same sludge. Everybody is investing billions. Our view was that it makes sense to club together to develop some core systems as a platform.”
Automakers, including BMW, freely admit that they will probably lose money on their first fully autonomous vehicles but many are banking on the potential for driverless taxi services to redefine the industry and prove more profitable.
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