Ford in talks with Google to develop self-driving car

If confirmed, Ford will produce Google's car under contract; an official announcement on the deal could be made at CES 2016.

Published on Dec 23, 2015 08:00:00 PM

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US automaker Ford is in talks with Google to jointly build the latter’s planned self-driving vehicle, according to reports.

Talks of a joint venture between both the companies, which would see Ford produce Google’s car under contract, are currently in advanced stages. An official announcement on the deal could come as early as January at the Consumer Electronics Show in Las Vegas.

This joint venture with Google will give Ford a shot in the arm in terms of self-driving software development. In fact, the automaker has been experimenting with its own systems for years now and recently revealed plans to begin testing on public streets in California. Google, on the other hand is set to benefit from Ford’s manufacturing scale as part of the deal.

According to reports, a spokesman for Ford would neither confirm nor deny the deal, saying: “We work with a lot of tech companies all over the world. We keep these discussions private for obvious competitive reasons and we do not comment on speculation.” A Google spokesperson said the company would not comment on speculation, but earlier this year Google co-founder Sergey Brin said the company was looking to partner with manufacturers.

Former Ford boss Alan Mulally and former Hyundai America chief John Krafcik have both joined Google in recent times. Mulally is currently on Google’s board of directors, while Krafcik has been hired to head the company’s driverless car project.

The agreement could result in a new joint venture, which is legally separate from Ford, shielding the carmaker from potential liability. The deal could also be non-exclusive, meaning Google could also negotiate more deals with other car makers.

Rumours of Google wanting to develop its own autonomous car date back to 2013, but it wasn’t until last year that the company unveiled its first autonomous prototype.

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