2006 F-350 King Ranch 4x4 on 2040-cars

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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.

Autoblog Podcast #327

New York Auto Show, Jim Farley interview, 2014 Chevrolet Silverado fuel economy, Ford fuel economy app challenge
Episode #327 of the Autoblog Podcast is here, and this week, Dan Roth, Zach Bowman and Jeff Ross talk about this year's New York Auto Show, Chevrolet's latest assault in the pickup truck fuel economy battle, and Ford's reward for developing a better fuel economy app. Dan also has an interview with Ford's Jim Farley about the future of Lincoln. We wrap with your questions and emails, and for those of you who hung with us live on our UStream channel, thanks for taking the time. Keep reading for our Q&A module for you to scroll through and follow along, too. Thanks for listening!
Autoblog Podcast #327:

Ford adds 850 jobs to build 2015 F-150

Pickup trucks tend not to advance at quite the same pace as the rest of the industry. That's what makes the new Ford F-150 so remarkable, jettisoning its old steel construction in favor of aluminum. It's a game changer that Ford is betting big on, and in anticipation of surging demand, the Blue Oval automaker is adding 850 new jobs to put the thing together.
Those 850 new employees will be centered at Ford's Rouge complex in Michigan - with 300 at Dearborn Stamping, 50 more at Dearborn Diversified and 500 at the Dearborn Truck facility, the latter of which has already kicked off what Ford describes as "the largest manufacturing transformation in decades." Old manufacturing equipment is being replaced with the latest technologies, and even the Ford Rouge Factory Tour is undergoing a complete overhaul.
The new jobs come as part of the commitments Ford made to the UAW in 2011 to create 12,000 hourly jobs in the United States by 2015 - a number which Ford has already exceeded at 14,000. Over 4,000 of those are centered in southeastern Michigan.