Although Google and Ford are in different industry, it is not impossible for them to team up. There are certain aspects that both companies might be able to help one another.
In fact, several reports claim that Ford and Google could actually team up and probably will announce the development of a self-driving car initiative at the Consumer Electronics Show in Las Vegas by January 2016. Yahoo Autos reported that the two companies are creating an independent joint venture to produce self-driving cars. Such is believed to be part of a non-exclusive deal which means that Google will be able to partner with other automakers, too.
Google has already made a name with its self-driving car program in transformational technology. However, it still has a lot to learn about the car industry. Although the purpose of Google is to actually be the supplier of their needed technologies, teaming with a more experienced and leader in car technology like Ford will give it a clearer picture of the automobile industry.
"The traditional automakers are clearly doing a lot of research and development and have been doing so for a long time on all kinds of electrification, autonomous features, and connectivity long before Apple and Google were interested," Michelle Krebs, a senior analyst at Autotrader, told The Verge. "But Google and Apple are clearly interested in now getting in the car business. I think what they are interested in ultimately is supplying what goes in the cars — not getting into the whole car business of running plants and logistics around all that and dealing with regulatory issues and safety. The auto business is not a high margin business. The electronics business is a very high margin business.”
Both of the companies will most likely benefit from each other, if the reports about both of them teaming up for a self-driving car project are true.
Do you think that the two companies should partner for a self-driving car project?
