{"id":78876,"date":"2016-01-13T21:03:51","date_gmt":"2016-01-14T02:03:51","guid":{"rendered":"http:\/\/rbachnet.wwwmi3-ss40.a2hosted.com\/index.php\/"},"modified":"2022-08-11T17:15:13","modified_gmt":"2022-08-11T21:15:13","slug":"ford-to-make-google-cars","status":"publish","type":"post","link":"https:\/\/rbach.net\/index.php\/ford-to-make-google-cars\/","title":{"rendered":"Ford to Make Google Cars"},"content":{"rendered":"

\"Ford<\/a> The 2016 North American International Auto Show<\/a> started today at Cobo Center<\/a> in Detroit<\/a>\u00a0so let talk about autonomous cars<\/strong>. Ford<\/strong>\u00a0and Google are in talks to have the Dearborn,MI<\/a>-based automaker build Google\u2019s<\/strong> next-generation autonomous cars<\/strong> under contract, Automotive News<\/em><\/a> has learned<\/a>. A source with knowledge of the project says both parties have been negotiating on the deal \u201cfor a long time.\u201d An announcement, if finalized, could come as early as the International Consumer Electronics Show<\/a> in Las Vegas<\/a>.<\/p>\n

\"Ford<\/a>Neither firm would confirm the reports for the record. Google<\/a> (GOOG<\/a>) officials did confirm that the company is talking to automakers. Ford Motor Company<\/a> (F<\/a>) official Alan Hall<\/a> did say, \u201cWe work with a lot of tech companies all over the world. We keep these discussions private for obvious competitive reasons and we do not comment on speculation.<\/em>\u201d<\/p>\n

Google loading up auto executives<\/h3>\n

To fan the rumors, two veteran Ford executives have recently joined Google<\/strong>. Former CEO Alan Mulally<\/a><\/strong> joined Google\u2019s board of directors eight days after he retired from the automaker on July 1, 2014. Then in September, Google hired John Krafcik as CEO of the company\u2019s Self-Driving Car Project<\/strong>. Mr. Krafcik<\/a>, who most recently was president of TrueCar Inc.<\/a>, was CEO of Hyundai Motor America<\/a>. He spent 14 years at Ford, including a stint as chief engineer during the development of the Ford Expedition SUV.<\/p>\n

\"Google<\/a>Ford is scheduled to hold a press conference on Jan. 5 in Las Vegas. Ford CEO Mark Fields<\/a>, product development chief Raj Nair<\/a>, research and advanced engineering vice president Ken Washington<\/a>, and Don Butler<\/a>, executive director of connected vehicles and services, are scheduled to attend.<\/p>\n

Yahoo Autos<\/em><\/a> reported<\/a> on the negotiations, quoting three sources familiar with the deal. The sources said the deal would create a joint venture<\/strong> legally separate from Ford. The venture would shield Ford from potential liability. The agreement, if completed, also would be non-exclusive, meaning Google could negotiate a similar deal with another automaker.<\/p>\n

\"Autonomous<\/a><\/p>\n

CEO Fields recently gave Auto News<\/em> an update on Ford’s Smart Mobility efforts. The initiative would bolster the company\u2019s expertise in car-sharing and other new business models for transportation. He said. “It’s not about just going from an old business to a new business. It’s about going to a bigger business<\/strong>.<\/em>”<\/p>\n

Auto News<\/em> theorizes that a Ford deal with Google would fit within the strategy laid out by CEO Fields. He commented during an interview:<\/p>\n

\"\"<\/a>It\u2019s not only about what are the things that are going to be core to us but who are we going to partner with. I don\u2019t think we can just be so arrogant to think that we\u2019re going to do everything on our own and we\u2019re going to do something better than maybe a company that does that 24\/7. For us, partnerships are really important.<\/em><\/p>\n

New mobility models beyond cars<\/h3>\n

During a visit to Ford\u2019s Silicon Valley research facility<\/a> in Palo Alto, CA<\/a>, Mr. Fields signaled that Ford sees new mobility models<\/strong> as a way to grow its business. When asked why Ford is developing its own software for self-driving cars, rather than striking a deal to use best-in-class software from an outside vendor. Ford\u2019s Fields joked that Silicon Valley practically invented the concept of \u201cfrenemies.\u201d In a corporate context, that means companies are willing to simultaneously collaborate on projects and compete against one another. Ford\u2019s R&D center is working on self-driving software, Mr. Fields said, \u201cthat doesn\u2019t mean we won\u2019t work with others. I think that\u2019s part of the beauty of being here.<\/em>\u201d<\/p>\n

\"Partners\"<\/a>Such a partnership would mark another step toward the marketplace for Google. Bloomberg<\/a> reported<\/a> that Google<\/strong>\u00a0is thinking of putting its technology into automated taxis<\/strong> as a rival for Uber<\/a> and Lyft<\/a>. <\/strong>Google may spin-off the unit into a standalone business within its new Alphabet Inc.<\/a> corporate structure in 2016.<\/p>\n

Ties between Ford and Google<\/h3>\n

It isn\u2019t clear whether Ford would design a purpose-built vehicle for Google or supply a standard production car fitted with the sensors and computers that the car needs to guide itself down the road.<\/p>\n

Having Ford build Google\u2019s test fleet would save the Silicon Valley tech giant years and billions in development costs. The Ford-built vehicles would use the automaker\u2019s production-ready powertrain as well as safety and emissions components.<\/p>\n

\"\"<\/a>There are already ties between Ford and Google. Google\u2019s first generation of 100 self-driving vehicles<\/strong> were assembled in Detroit by Roush Industries<\/a><\/strong>, a company closely aligned with Ford. The bubble-shaped cars, as Crain\u2019s Detroit Business<\/em><\/a> reported<\/a> used components from local Detroit area suppliers.<\/p>\n

Thilo Koslowski<\/a>, lead automotive analyst at Gartner<\/a> (IT<\/a>) in Santa Clara, CA said it makes sense automakers would want to work with Google, which could help them catch up to rivals that are pursuing automated driving to differentiate their products.<\/p>\n

And at Google, \u201cthe focus has shifted to looking for OEM partners to deploy the technology, rather than considering building their own vehicles,\u201d The Gartner analyst said. \u201cThat makes sense. If Google is interested in bringing the benefit of the technology to consumers, then they need as many partners as possible.\u201d<\/p>\n

Ford and Google are said to have been in talks since at least 2012 on autonomous cars. The two companies also teamed up in 2011 on technology that would help vehicles learn customers\u2019 driving habits and get them to destinations more efficiently.<\/p>\n

VP Washington said recently that he expects fully autonomous<\/strong> vehicles to be ready within four years<\/strong>. Ford has secured approval<\/a> from California to test its own autonomous cars in California. Ford has been testing autonomous Hybrid Fusion\u2019s<\/a> at the University of Michigan\u2019s<\/a> 32-acre simulated city Mcity<\/a>.<\/p>\n

rb-<\/em><\/strong><\/p>\n

Autonomous cars will increase the direct impact of the Internet of Things (IoT). With all of IoT’s inherent<\/a> security<\/a> and connectivity issues.<\/em><\/p>\n

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