It is anticipated that Google and Ford Motors will announce a deal on the production of self-driving cars during the Consumer Electronics Show which will take place early next month in Las Vegas, with Alan Mulally, a Member of Google’s Board and former CEO of Ford Motors, the driving force behind the move.
According to the deal, Ford would supply the vehicles for next-generation internet connected Google cars, followed by autonomous cars. With this move Google’s business division that focuses on self-driving technology will gain much more autonomy, with long term plans to rival business such as Lyft and Uber by offering rides for hire.
John Krafcik, the new leader of Google’s Autonomous Cars Division, who previously worked for Ford for over fourteen years, has brought a number of people with him from his old firm to his new workplace. This will make sure that the teams working on the new deal will know each other well, which should help move it forward smoothly.
Good News for Automotive Industry
This deal spells good news for automakers around the globe, as it means that Google is more interested in tapping into the huge potential market for internet connected self-driving cars than actually making them itself.
The automotive industry’s worst case scenario is the possibility that one of the tech giants, be it Google, Apple, or a third party, decides to start creating autonomous cars themselves, leaving the traditional industry with what are bound to become outdated products.
Once the deal is confirmed, Ford will be the first manufacturer of vehicles that has successfully reached an agreement with one of the tech giants making it both a pioneer in the field and a bearer of good news for the future of the industry.