SINGAPORE (Mar 4): Daimler and BMW deepened their alliance on Feb 28 to share spiralling development costs for highly automated driving technologies, even as each carmaker pursues separate efforts to develop fully self-driving cars.

The enormous cost of designing and building computer-powered vehicles has already prompted Honda Motor Co to pool its efforts with General Motors, while Volkswagen is pursuing talks with Ford Motor about an alliance on autonomous cars.

BMW and Daimler deepened their alliance for similar reasons, said Michael Hafner, head of automated driving at Mercedes-Benz R&D in a blog post that accompanied a joint press release by the companies on Feb 28.

“We have learnt that the development of these systems is a bit like climbing a mountain,” he said.

“Taking the first few metres from the base station to the summit seems easy. But the closer you come to the goal, the thinner the air around you becomes, the more strength is required for each further step and the more complex become the challenges you have to resolve.”

It made sense to distribute the technological and financial challenges of automated driving, Hafner said, so BMW and Daimler will jointly develop technology to enable automated driving on highways.

“Initially, the focus will be on advancing the development of next-generation technologies for driver assistance systems, automated driving on highways and parking features,” the companies said in the statement.

“In addition, the two partners plan to discuss the possibility of extending their collaboration to cover higher levels of automation, both on highways and in urban areas.”

BMW and Daimler’s move comes as even deep-pocketed technology companies struggle to gain traction in autonomous driving. Apple said on Feb 27 it planned to lay off 190 employees in its self-driving car programme, Project Titan.

The market for advanced driver assistance systems and autonomous vehicles is expected to grow to US$96 billion ($130 billion) in 2025 and US$290 billion in 2035 from about US$3 billion in 2015, according to Goldman Sachs.

BMW and Daimler already cooperate in high-definition mapping with HERE Technologies and in the area of procurement, and in February unveiled a joint ride-hailing, parking and electric-car charging business.

They said on Feb 28 that their new partnership will centre on so-called Level 3 and Level 4 automated driving technologies, including cars that still require steering wheels and drivers.

Daimler will pursue a separate development alliance for Level 5 robotaxis between its luxury brand Mercedes-Benz and supplier Robert Bosch. Level 5 cars require no driver.

BMW, for its part, continues its development alliance for robotaxis with Israeli autonomous vehicle tech company Mobileye and chip maker Intel, with the aim of putting autonomous cars on the road by 2021.

BMW, Daimler pool resources on automated driving technology

Temasek's GenZero invests in At One Ventures' US$375 mil Fund II backing 'disruptive climate tech'

Total value of assets seized in money laundering case now more than $2.8 billion

VTAC proposes business combination with live streaming platform 17LIVE

Data is the new oil but is it as dirty?

'Transition credits' could sweeten deal for early retirement of coal-fired power plants: MAS, McKinsey paper

Trade Stocks, ETFs, Forex and Futures with Phillip Nova:

BMW, Daimler pool resources on automated driving technology

Related News

Highlights

Temasek's GenZero invests in At One Ventures' US$375 mil Fund II backing 'disruptive climate tech'

Related News

Hong Kong investor and EPF pare stake in Interra Resources, Riverstone respectively

DBS and Sea: Two ends of a barbell?

SGX sticks to multi-asset push as MSCI ditches Singapore to cast its lot with Hong Kong