Ford Developing Fully Driverless Car -- Update
August 16 2016 - 2:39PM
Dow Jones News
By Christina Rogers
Ford Motor Co. plans to release a fully driverless car without a
steering wheel or pedals in the next five years, the latest salvo
in a technological arms race engulfing the global auto
industry.
The Dearborn, Mich., auto maker on Tuesday said it would
initially target ride-sharing fleets and package-delivery services
with the unnamed model, underscoring the still-incremental approach
many car companies are taking before offering vehicles to consumers
that don't require humans to remain engaged behind the wheel.
Ford expects the first of the forthcoming driverless cars to be
used by commercial-fleet operators looking to cut the relatively
higher costs of employing human drivers, company executives said.
The vehicles will be largely confined to cities with pre-mapped
zones designed for autonomous vehicles.
Ford separately said Tuesday it had acquired Israeli machine
learning firm SAIPS and invested $75 million in Morgan Hill,
Calif.-based laser sensor maker Velodyne Inc. Both are aimed at
boosting Ford's know-how, with the latter working on sensors to
help autonomous cars successfully recognize objects and navigate
traffic. Chinese web-service provider Baidu Inc. is investing in
Velodyne alongside Ford.
Ford also plans to double the staff at its Silicon Valley office
to 260 by the end of 2017, hiring researchers and
business-development staff in an effort to expand into new
transportation services.
Ford's series of forays mark the latest attempt to keep up as
traditional car companies and Silicon Valley upstarts race to stake
their claims to the latest automated-driving technologies and an
eventual future that could take motorists entirely out of the loop.
But the technology has come under increased scrutiny after the May
fatal crash of a Tesla Motors Inc . electric car driving itself and
questions remain over regulations and legal liabilities arising
from the advancements.
General Motors Co. punched the accelerator earlier this year,
taking a $500 million stake in ride-hailing startup Lyft Inc., with
which it plans to soon start testing a fleet of driverless
Chevrolet Bolt taxis. The Detroit car maker also created its own
"personal-mobility" brand called Maven and acquired the Silicon
Valley autonomous-driving startup Cruise Automation Inc. to aid
development efforts.
Other global giants including Toyota Motor Corp. and Volkswagen
AG have committed to putting self-driving cars on the road and are
spending billions to bulk up their software, mapping and artificial
intelligence expertise. Google parent Alphabet Inc. recently
announced it was pairing up with Fiat Chrysler Automobiles NV to
jointly test self-driving technology under development since 2009
in minivans.
Ford's driverless car won't be made available for sales to
individual customers until later in the decade, said Chief
Executive Officer Mark Fields in an interview.
"We've done a lot of work reducing the cost on the technical
components, but at the outset, it is still going to be a relatively
expensive vehicle," he said.
Ford declined to say whether it plans to operate its own
robo-taxi fleet or sell its forthcoming driverless car to
independent ride-hailing services such as Uber Technologies
Inc.
Like other major auto makers, Ford is allocating significant
resources to developing self-driving cars, viewing the technology
as a way to reach consumers who live in large, congested cities and
don't own a vehicle. Earlier this year, the company established a
separate division, Ford Smart Mobility LLC, to explore new business
models that will cater to that growing market.
But Mr. Fields said Ford isn't interested in being the first
auto maker to put a fully autonomous car on the market, noting
"we're not in a race to make announcements."
Many car companies, including Ford, are installing
semiautonomous features such as automatic brakes and adaptive
cruise control in vehicles. But Ford remains keenly focused on
fully driverless cars, with product chief Raj Nair expressing
concerns over whether drivers can take over quickly enough when
driverless systems are disabled.
Other hurdles also remain. Regulators are still trying to sort
out what rules and guidelines need to be in place before driverless
cars start hitting roadways in large numbers.
"The regulators are being very forward leaning on this," Mr.
Fields said. "Our desire is to get a 50-state national framework"
on operational standards for driverless cars, he added. The
National Highway Traffic Safety Administration plans this summer to
release guidelines for local rules on driverless cars.
Ford and Baidu's investment in Velodyne is also aimed at helping
the tech firm lower the costs of its sensors to between $300 and
$500 per unit, inexpensive enough for mass adoption. The first
Velodyne laser device cost $75,000 and was large and obtrusive,
sitting on the roof of the car.
Write to Christina Rogers at christina.rogers@wsj.com
(END) Dow Jones Newswires
August 16, 2016 14:24 ET (18:24 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Baidu (NASDAQ:BIDU)
Historical Stock Chart
From Aug 2024 to Sep 2024
Baidu (NASDAQ:BIDU)
Historical Stock Chart
From Sep 2023 to Sep 2024