Mercedes-Benz allies with Google to develop self-driving cars

Mercedes-Benz announced on Wednesday that it has partnered with Google on navigation, and they are both planning on launching super computer-like performance in cars with automated driving sensors.

The partnership aims to compete with companies such as Tesla and new Chinese companies.

Automakers are doing their best to match other software-powered features in cars such as Tesla. These are features that allow for vehicle performance, self-driving capabilities, and battery range all to be upgraded from a distance.

Germany’ automaker decided to share revenue with Nvidia Corp, the semiconductor maker. Both companies have had a partnership since 2020 on automated driving software.

The decision made by Mercedes-Benz aims to bring down the upfront cost of expensive high-powered semiconductors, according to Ola Kaellenius, the chief executive.

“You only pay for a heavily subsidized chip, and then figure out how to maximize joint revenue,” Ola said, explaining that prices would be low, even if every feature on the chip is not turned on.

He also added that customers who are willing to pay for an extra set of options would have cars with Lidar sensor technology, along with other hardware for automated level 3 driving.

Luminar Technologies Inc., the self-driving sensor maker company wherein Mercedes owns a small stake, talked on Wednesday about how it sealed a multi-billion-dollar deal with Mercedes to enhance its sensors on a variety of vehicles by 2025.

This deal will be inclined Luminar shares by over 25 percent.

Mercedes aims to have control over its software core and to bring partners in by their new strategy, as the new Mercedes car will also have hyper screens in the car’s cockpit.