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Self-driving cars' problem (besides making them work): Too many players, not enough profit

For an detailed, interactive graphic about the many players in autonomous cars, click here. FRANKFURT/DETROIT — BMW and Daimler, the world's top luxury carmakers, have announced alliances with suppliers, talking up the virtues of having a bigger pool of engineers to develop a self-driving car. But another motive behind these deals, executives and industry experts told Reuters, is a concern that robocars may not live up to the profit expectations that drove an initial investment rush. Carmakers are increasingly looking to forego outright ownership of future autonomous driving systems in favor of spreading the investment burden and risk. The trend represents a clear shift in strategy from little more than a year ago when most automakers were pursuing standalone strategies focused on tackling the engineering challenge of developing a self-driving car, rather than on the business case. "Although it is a substantial market, it may not be worth the scale of investments currently being sunk into it," said a board member at one of the German carmakers, who declined to be identified because the matter is confidential. Dozens of companies — including carmakers and tech firms like Google and Uber — are vying for a market which, according to consulting firm Frost & Sullivan, will only make up about 10 to 15 percent of vehicles in Europe by 2030. There are sure to be losers. "It's impossible for me to believe there will be 50 successful autonomous vehicle software producers," said John Hoffecker, global vice chairman of Michigan-based consulting firm AlixPartners. In July last year, BMW became the first major carmaker to abandon its solo development of self-driving cars in favor of teaming up with chipmaker Intel and camera and software manufacturer Mobileye to build a platform for autonomous cars technology by 2021. The decision followed a trip by senior executives to visit startups and suppliers to gauge BMW's competitive position. "Sitting at other companies, one rattles off the technological challenges and safety aspects, and you come to realize that many of us are swimming in the same sludge," Klaus Buettner, BMW's vice president autonomous driving projects, told Reuters. "Everybody is investing billions.

BMW shuffles chairs in its design department

BMW Group has made some changes to its design team since August 1, and has shuffled top personnel to different positions at BMW Design, Mini Design and Rolls-Royce.
The BMW Design team led by Karim Habib (middle, right) gains a new head of Exterior Design in Domagoj Dukec (right), who has worked for the exterior design team since 2010 and shaped the Concept Active Tourer.
Oliver Heilmer (left), who has worked for BMW's interior design unit since 2000 and designed the 5 Series interior, replaces Marc Girard as head of Interior Design BMW Automobiles. Marc Girard goes to manage BMW's subsidiary design group, BMW DesignworksUSA.

BMW chooses Tesla's Supercharger network for its future EVs

BMW, following the lead of many other automakers, has confirmed this week that it will adopt the North American Charging Standard (NACS), delivering EV drivers in the U.S. and Canada access to Tesla’s Supercharger network. The move goes a step further in cementing NACS as the universal system of choice. The conversion to Tesla plugs will begin formally in 2025 for BMW, as well as its Mini and Rolls-Royce brands in the U.S. market. Those marques now use the Combined Charging System (CCS) for EV charging. “It is our top priority to ensure that our drivers have easy access to reliable, fast charging," said Sebastian Mackensen, President & CEO, BMW of North America. NACS, which began as began as TeslaÂ’s proprietary charging connection, rapidly has become the new standard in its native land after Ford announced it would adopt it this past summer. This was quickly followed by General Motors. Since then, brands including Rivian, Mercedes-Benz, Volvo, Nissan, Polestar, and Jaguar have climbed d on board NACS. Earlier this month, the Hyundai Motor Group announced it would also provide customers with the NACS connector across its namesake, Kia, and Genesis marques. BMW says it will work across its three marques in the coming months to ensure a smooth transition to TeslaÂ’s charging network by early 2025, and owners will be able to pay for charging using their respective vehicle brandÂ’s own app. Related Video: How to charge a non-Tesla on a Supercharger