BMW Group, Mercedes-Benz AG put joint AV venture on hold

BMW Group and Mercedes-Benz AG ’s self-driving car initiative is on hold, the companies announced today . After “extensive review , ” the companies concluded it i s not the right time to launch a joint venture , due to forecast ed expense and current economic conditions , although they stressed that future cooperation in th e endeavor is still on the table. The two European automakers ha d each been working on their own automated - driving technology separately with current and potentially new partners . The y had signed a contract in July 2019 , but decided to suspend the joint AV initiative after recent discussions . Klaus Fr o hlich, a member of the b oard of m anagement of BMW AG and responsible for d evelopment, said BMW has been successful in working with partners such as Intel, Mobileye, F iat C hrysler A utomobiles and Ansys. "Our current technology generation offers very strong, sustainable potential: With extremely powerful sensors and computing power, our robust modular system puts us in an excellent position to offer our customers what they need for many years,” Fr o hlich said. Daimler is also looking to work with partners outside the automotive sector , according to Markus Schafer, chief operating officer at Mercedes-Benz Cars and a member of the board of management of Daimler AG and Mercedes-Benz AG , responsible for Daimler Group Research . While self-driving cars are expected to be a big component of the auto industry’s future, cost is a barrier to developing the needed technology . However, reviving the join t AV venture may not permanently be off the table. The two OEMs have been working together for years , most recently launch ing a $1.1 billion mobility and ride-hailing venture under the umbrella of the NOW mobility network in early 2019 . "Our expertise complements that of the BMW Group very well, as our successful collaborations have proved,” Sch a fer said . Auto Finance Summit, the premier industry event, returns October 20-22, 2020, as a virtual experience. The virtual experience will offer the same quality networking and education as past events, all through an online platform. To learn more about the 2020 event and register, visit www.AutoFinanceSummit.com .

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BMW Group, Mercedes-Benz AG put joint AV venture on hold

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