Continental AG, one of the world's largest automotive parts makers, has picked a Google Inc. self-driving-car executive to lead a new Silicon Valley-based operation aimed at intelligent transportation efforts.

The company said it has hired Seval Oz, an expert in vehicle networking and automation who worked on Google's self-driving car project. She will lead a group of engineers and businesspeople at a new Intelligent Transportation Systems division in the Bay Area.

The next frontier for automobiles is hardware and software that can take control of vehicles for short periods. Most car makers already are working on some sort of autonomous vehicle application, from basic levels where a car's computer can pull the car back onto the road when it veers or stop the car to avoid hitting another vehicle, to more complex systems that can drive from point A to point B.

Already, Daimler AG's Mercedes-Benz is offering a system in its S550 sedan that can virtually do all operations as long as the driver's hands remain on the wheel. Tesla Motors Inc. has said it is planning to be the first car maker to have a fully self-driving car on the market.

"This step is an excellent example of our strategy to make the car an integral part of the "Internet of Everything'," said Elmar Degenhart, chief executive officer of Continental, in a statement. "Our key objectives include eliminating road accidents, minimizing energy consumption, maximizing comfort and usability of vehicles, and enabling them to exchange information with each other in real-time," he added.

Suppliers such as Continental are rushing to provide technology in this space because they can charge a premium versus more commodity-driven parts in areas of the vehicle.

The move is another example of the convergence of Detroit and Silicon Valley with smartphone-based technology already pervading vehicles' cabins and companies such as Apple Inc. and Google fighting over creating platforms for the applications that appear in new vehicles.

"In addition to our existing competence, the Bay Area has the technology and talent for developing connected cars and [intelligent transportation systems] that we need to build solutions for more than just prototypes," said Helmut Matschi, a member of Continental's executive board and president of the Interior Division.

Companies such as BMW AG have had research centers in Silicon Valley for years, and many other auto makers have followed, trying to tap into the region's talent.

Write to Mike Ramsey at michael.ramsey@wsj.com

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