01/06/2018

More competitors enter self-driving race

BBC reports that General Motors and Fiat Chrysler have announced deals to move towards self-driving vehicles.

Japan's SoftBank is putting £1.7bn into GM's autonomous unit Cruise, one of the biggest single investments in self-driving technology, and Google-owned Waymo is buying up to 62,000 Fiat Chrysler minivans for its autonomous fleet.

Uber has reportedly said it could work with Waymo to use its self-driving technology.

SoftBank will take a 19.6% stake in Cruise. The partnership values Cruise at $11.5bn, a triumph for GM which was criticised for over-paying when it bought the start-up two years ago for $1bn.

RBC Capital Markets analyst Joseph Spak said the deal meant that GM was now a serious competitor in the race to bring self-driving vehicles to market. 'GM has a meaningful seat at the table,' he said.

GM chief executive Mary Barra said GM planned to launch its Uber style service but could explore 'other opportunities' with some of the companies that SoftBank has funded.

Fiat Chrysler, America's number three carmaker behind GM and Ford will begin delivering the first of its 62,000 Pacifica vans later this year.

'Strategic partnerships, such as the one we have with Waymo, will help to drive innovative technology to the forefront,' Fiat chief executive Sergio Marchionne said.

Waymo's chief executive, John Krafcik, has said the company's own self-driving software is 'robust' enough to avoid the sort of accident Uber suffered in Arizona.