The world’s biggest carmakers are reportedly forging unlikely alliances to become the first to offer safe and reliable autonomous cars.
Volkswagen has partnered with Ford while BMW and Daimler AG have teamed up.
China Daily reports that automakers are also enlisting the help of technology companies like Cruise, Argo and Aurora.
Arun Kumar, director in the automotive and industrial practice at AlixPartners told China Daily, ‘On electric and autonomous (vehicles) we’re talking about $300 billion worth of investments that have been announced so far.’
‘Then, if you add in things like electric vehicle infrastructure that you need to put in place to enable the adoption and acceleration of electric vehicles we’re talking another $30 to $40 billion of investments that somebody in the industry needs to make,’ added Kumar.
Volkswagen is reported to be investing $2.6 billion in Ford’s autonomous-car partner Argo AI in a deal that values the Pittsburgh startup at more than $7 billion. Although Ford CEO Jim Hackett stressed that the two automakers would remain ‘independent and fiercely competitive in the marketplace’.