German automotive manufacturers BMW and Daimler have reportedly teamed up to help each other develop automated driving technologies.
The companies announced the partnership on Thursday, revealing that they have already made the appropriate steps to start their collaboration. The partnership is the latest move amongst carmakers to share resources in light of the ongoing slump in the industry.
The announced partnership was revealed to mainly focus on the development of different automated driving systems. This included work on systems such as automated guidance, driving software, and automated parking.
According to BMW and Daimler, more than 1,200 developers from both companies have been tasked to work together on various technologies. Both companies added that they will be implementing the results of the collaboration onto their future products independently.
Both companies initially hinted at their planned partnership back in February. During that time, Daimler and BMW mentioned that they were busy discussing the possibility of extending their partnership into other avenues.
This week, both companies revealed that they have already finalized their agreement, which should result in new technologies that will be deployable by 2024.
Both companies added that the cooperation agreement was non-exclusive, meaning that the technologies that will result from the collaboration may be made available to other licensed original equipment manufacturers (OEM).
As global automotive manufacturer face tougher times in light of ongoing international trade conflict and tougher emission regulations, most have decided that joining forces would be the best move to reduce the cost in the development of new key technologies.
The costs involved in developing and deploying technologies such as electric drivetrains and automated driving systems are enormous. Most manufacturers simply cannot afford to spend on it, especially with continually dwindling margins.
Last month, Daimler had issued a profit warning to its investors and shareholders, citing that it was setting aside a large chunk of its earnings to cover possible fines over its alleged diesel emission mistakes.
The company was asked last month to recall more than 60,000 of its vehicles after regulators allegedly found that the company was using illegal software to pass emissions tests. BMW also issued a similar warning back in May, citing that it was taking on unexpectedly larger investments and costs for the year.
Apart from Daimler and BMW, Volkswagen and Ford have announced that they are currently in the final stages of coming up with a collaboration agreement to jointly develop technologies such as automated driving and electric vehicles. Reports have revealed that both companies are set to finalize the deal sometime in this month.
