Automaker Fiat Chrysler will cooperate with BMW to develop driverless cars, according to the companies’ declarations on Wednesday. The partnership includes Intel as well, who has a partnership with BMW since last year.
Moreover, Intel brings to the table Mobileye, an Israeli company it acquired last week, specialized in manufacturing and developing cameras, sensors and software for self-driving cars.
Nowadays, more and more car producers seek partnerships, to survive and remain relevant. Unlike Silicon Valley firms, car companies are experts in designing and manufacturing vehicles with internal combustion engines. But battery powered cars seem to be the future, since they have fewer parts, require less maintenance and are easier to manufacture.
Moreover, traditional automakers seek alliances to share the huge R&D costs necessary for developing autonomous cars. Silicon Valley companies are worth much more than traditional car manufacturers and have more resources at hand. For instance, Apple is worth 40 times as much as Fiat Chrysler and could easily acquire the latter.
According to consulting firm Frost & Sullivan, autonomous cars will represent up to 15% of the total vehicles in Europe, by 2030. Therefore, alliances and partnerships seem to be the right strategy for established carmakers to defend their positions. BMW and Fiat Chrysler representatives declared that the newly found consortium is open to other companies willing to join.