Ford Sets Plans For Cars Without Steering Wheels -- WSJ
August 17 2016 - 3:03AM
Dow Jones News
By Christina Rogers
Ford Motor Co. plans to release a fully driverless car without a
steering wheel or pedals in the next five years, the latest salvo
in a technological arms race engulfing the global auto
industry.
The Dearborn, Mich., auto maker on Tuesday said it would
initially target ride-sharing fleets and package-delivery services
with the unnamed model, underscoring the still-incremental approach
many car companies are taking before offering vehicles to consumers
that don't require humans behind the wheel.
Ford expects the first of its driverless cars to be used by
commercial-fleet operators looking to cut the costs of employing
human drivers, company executives said. The vehicles largely will
be confined to cities with pre-mapped zones designed for autonomous
vehicles.
Separately, Ford said it had acquired an Israeli machine
learning firm, SAIPS, which has 12 employees, and invested $75
million in Morgan Hill, Calif.-based laser sensor maker Velodyne
Inc. Both are aimed at boosting Ford's autonomous-vehicle know-how,
with the latter working on sensors to help autonomous cars
successfully recognize objects and navigate traffic. Chinese
web-service provider Baidu Inc. invested in Velodyne alongside
Ford.
The nation's No.2 car maker also plans to double the staff at
its Silicon Valley office to 260 by the end of 2017, hiring
researchers and business-development staff in an effort to expand
into new transportation services.
Ford's forays mark the latest attempt to keep up as traditional
car companies and Silicon Valley upstarts race to deliver
automated-driving technologies. But those endeavors have come under
increased scrutiny after the May fatal crash of a Tesla Motors Inc
. car driving itself. Questions also remain over regulations and
legal liabilities arising from the advancements.
General Motors Co. punched the accelerator earlier this year,
taking a $500 million stake in ride-hailing startup Lyft Inc., with
which it plans to soon start testing a fleet of driverless
Chevrolet Bolt taxis. The Detroit car maker also has said it
expects next year to roll out its SuperCruise feature that allows
for hands-free driving on the highway. It this year acquired the
Silicon Valley autonomous-driving startup Cruise Automation Inc. to
aid development efforts.
Other global giants including Toyota Motor Corp., Nissan Motor
Co. and Volkswagen AG have committed to putting self-driving cars
on the road. Nissan pledged it would roll out 10 new models within
the next five years with a range of self-driving features aimed at
individual buyers, including a fully autonomous car. Tesla, which
released its driver-assist Autopilot system last year, says it will
be the first to put a fully driverless car on the road, although it
hasn't set a specific date.
Google parent Alphabet Inc. recently said it was pairing with
Fiat Chrysler Automobiles NV to jointly test self-driving
technology in minivans.
Ford's driverless car won't be made available for sales to
individual customers until later in the decade, Chief Executive
Officer Mark Fields said in an interview.
"We've done a lot of work reducing the cost on the technical
components, but at the outset, it is still going to be a relatively
expensive vehicle," he said.
Ford declined to say whether it plans to operate its own
robo-taxi fleet or sell its forthcoming driverless car to
independent ride-hailing services such as Uber Technologies
Inc.
Like other major auto makers, Ford is allocating significant
resources to developing self-driving cars, viewing the technology
as a way to reach consumers who live in large, congested cities and
don't own a vehicle. Earlier this year, the company established a
separate division, Ford Smart Mobility LLC, to explore new business
models that will cater to that growing market.
But Mr. Fields said Ford isn't interested in being the first
auto maker to put a fully autonomous car on the market, noting
"we're not in a race to make announcements."
Many car companies, including Ford, are installing
semiautonomous features such as automatic emergency brakes and
adaptive cruise control in vehicles. But Ford remains keenly
focused on fully driverless cars, with product chief Raj Nair
expressing concerns over whether drivers can take over quickly
enough when driverless systems are disabled.
Other hurdles also remain. Regulators are still trying to sort
out what rules and guidelines need to be in place before driverless
cars start hitting roadways in large numbers.
"The regulators are being very forward leaning on this," Mr.
Fields said. "Our desire is to get a 50-state national framework"
on operational standards for driverless cars, he added. The
National Highway Traffic Safety Administration plans this summer to
release guidelines for local rules on driverless cars.
Ford and Baidu's investment in Velodyne also is aimed at helping
the tech firm lower the costs of its sensors to between $300 and
$500 a unit, inexpensive enough for mass adoption. The first
Velodyne laser device cost $75,000 and was large and obtrusive,
sitting on the roof of the car.
Write to Christina Rogers at christina.rogers@wsj.com
(END) Dow Jones Newswires
August 17, 2016 02:48 ET (06:48 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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