Skip to main content
EVENT TRACKER
Keep track of rescheduled, canceled industry events with our COVID-affected event tracker - Powered by Snap Finance
Close
Sister Publication Links
  • Rubber & Plastics News
  • European Rubber Journal
tb-logo
Subscribe
  • Login
  • Register
  • Subscribe
  • News
    • OPINION
    • CORONAVIRUS
    • AUTO INDUSTRY
    • BUSINESS/FINANCIAL
    • COMMERCIAL TIRE
    • FACTORY FIXES
    • GOVERNMENT & LAW
    • INTERNATIONAL
    • MOTOR SPORTS
    • NEW PRODUCTS
    • RETAIL TIRES
    • SERVICE ZONE
    • SEMA/AAPEX
    • SMALL BUSINESS
    • TIRE MAKERS
    • SPONSORED CONTENT
    • Bridgestone Senior Players Championship should be 'normal event' with fans at Firestone
      TBC Corp. to make donation to company charity to reward vaccinated employees
      Titan to offer free COVID-19 vaccines at Iowa facility
      Bridgestone hosts vaccination events for plant employees
    • Bridgestone develops EV tire for solar-powered vehicle
      GM, Ford among businesses urging Biden to cut U.S. emissions by 2030
      Light trucks/CUVs to take 82% of new U.S. sales by 2028 — SEMA
      SEMA closes deal for SEMA Garage property in Michigan
    • Pep Boys offering $100,000 in scholarships to aspiring techs
      GM, Ford among businesses urging Biden to cut U.S. emissions by 2030
      Love's moves Indiana retread plant to larger site nearby
      Ziegler Tire employees receive back pay after investigation
    • Love's moves Indiana retread plant to larger site nearby
      Michelin adapts 'QuickScan' tire monitoring system to cars
      Prometeon's 2020 earnings off slightly on 15% lower sales
      Fisher: Expect robust recovery in last half of year
    • GM, Ford among businesses urging Biden to cut U.S. emissions by 2030
      Ziegler Tire employees receive back pay after investigation
      Bridgestone part of Louisiana environmental settlement
      New York chipping in $3M+ toward Sumitomo factory expansion
    • Goodyear to supply tires for World Tour bicycle racing team
      Michelin adapts 'QuickScan' tire monitoring system to cars
      Prometeon's 2020 earnings off slightly on 15% lower sales
      Goodyear to highlight international racing effort in ‘GoRacing' e-magazine
    • GT Radial named Formula Drift PROSPEC spec tire
      4WP partnering with CORVA to help protect off-roading in California
      Goodyear to highlight international racing effort in ‘GoRacing' e-magazine
      Goodyear goes retro for 'Throwback' NASCAR race at Darlington Raceway
    • Bridgestone develops EV tire for solar-powered vehicle
      Yokohama OHT adds severe-duty solid tire to Galaxy brand
      Bosch adds 22 aftermarket parts in Q1
      Snap-On introduces TreadReader handheld tire scanner
    • Tuffy franchisees raise funds for Central Florida MDA
      Pep Boys offering $100,000 in scholarships to aspiring techs
      Ziegler Tire employees receive back pay after investigation
      Goodyear to add 'chatbot' feature to consumer-facing websites
    • The Group draws record turnout for virtual national conference
      ASE designates June as Automotive Service Professionals Month
      Fisher: Expect robust recovery in last half of year
      Bosch adds 22 aftermarket parts in Q1
    • Light trucks/CUVs to take 82% of new U.S. sales by 2028 — SEMA
      WTC webinar to address tire/wheel-balancing process errors
      SEMA closes deal for SEMA Garage property in Michigan
      SEMA picks site in Michigan for 2nd SEMA Garage
    • SBA extends and expands COVID-19 loan program
      Stimulus spending should help tire industry
      Giti disputes report blasting tire maker for accepting PPP funds
      SEMA survey shows resilient auto aftermarket in 2020
    • Coopers are ready to rock: Cooper Tire, Alice Cooper seek best garage band
      Last Mile: Delivery surge raises demand for medium truck tires
      Nexen touting manufacturing quality milestone
      Apollo isn't planning U.S. plant — yet
    • Sponsored By Yokohama Tire Company
      7 questions to ask consumers when they need tires for a crossover SUV
      Sponsored By Yokohama Tire Company
      Stocking Tires for Crossover SUVs
      Sponsored By AppointmentPlus
      Three Important Lessons Learned for the Tire Business During a Pandemic
      Sponsored By Yokohama Tire Company
      7 questions to ask consumers when they need tires for a crossover SUV
  • SHOP FLOOR
    • BALANCING
    • DEMOUNTING
    • SAFETY
    • TIRE REPAIR
    • TPMS
    • TRAINING
    • VEHICLE LIFTING
    • WHEEL TORQUE
    • Video: Balancing Tire
      Choosing the right balancing equipment
      Safety tips for wheel balancing
      An introduction to wheel balancing
    • Video: Demounting
      Demounting Equipment
      Making rims ready for a tight seal
      Tire changer types, tips and trends
    • Video: Safety
      Making friends with OSHA
      Ergonomics on the shop floor
      Customers
    • Video: Tire Repair
      Tire repair: Shining a light on visual inspections
      Staying safe when repairing a tire
      Essential tools, materials and equipment for tire repair
    • Video: TPMS Service
      Decoding sensor data for TPMS diagnosis
      Replacement TPMS sensor overview
      The life-saving work of TPMS
    • Video: Training
      Advantages of apprentice program partnerships
      Options and resources for CE tech training
      Internship ideas to attract tech talent
    • Video:Vehicle Lifting
      All types of lifts for all types of work
      Tips and recommendations for lifting safety
      The gravity of proper lift points
    • Video: Wheel Torque
      Using torque sticks to speed service times
      The danger of too much, too little torque
      The importance of torque specifications
  • Multimedia
    • VIDEOS
    • PHOTOS
    • PODCASTS
  • Events
    • ASK THE EXPERT
    • LIVESTREAMS
    • WEBINARS
    • SEMA LIVESTREAMS
  • Data
    • DATA STORE
  • Resources
    • DIRECTORY
    • CLASSIFIEDS
  • ADVERTISE
  • DIGITAL EDITION
  • Awards
    • Tire Dealer Humanitarian Award
MENU
Breadcrumb
  1. Home
  2. News
December 22, 2015 01:00 AM

Ford in talks with Google to build self-driving cars

Crain News Service
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    (Crain News Service photos)
    It isn't clear whether Ford Motor Co. would design a purpose-built vehicle for Google Inc. or supply a standard production car fitted with the sensors and computers that the car needs to guide itself down the road.

    By Richard Truett and Gabe Nelson, Crain News Service

    DETROIT (Dec. 22, 2015) — Ford Motor Co. and Google Inc. are in talks to have the auto maker build Google's next-generation autonomous cars under contract, Automotive News has learned.

    Although few details about the project are known, a source with knowledge of the project said both parties have been negotiating on a contract manufacturing deal “for a long time.” An announcement, if finalized, could come as early as the week of Jan. 4 during the annual International Consumer Electronics Show in Las Vegas.

    A Google spokesman said the firm would not comment on speculation, but company officials confirmed it is talking to auto makers.

    Ford spokesman Alan Hall neither confirmed nor denied a possible deal.

    “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,” he said.

    Google has added two veteran Ford executives to its leadership team. Former Ford CEO Alan Mulally joined Google's board of directors eight days after he retired from the auto maker on July 1, 2014. Then in September, Google hired John Krafcik as CEO of the company's Self-Driving Car Project. Mr. Krafcik, who most recently was president of TrueCar Inc., was CEO of Hyundai Motor America. He spent 14 years at Ford, including a stint as chief engineer during the development of the Ford Expedition SUV.

    Ford is scheduled to hold a press conference Jan. 5 in Las Vegas. CEO Mark Fields, product development chief Raj Nair, research and advanced engineering vice president Ken Washington, and Don Butler, executive director of connected vehicles and services, are scheduled to attend.

    Yahoo Autos reported on the negotiations on Dec. 21, quoting three sources familiar with the deal who said the deal would create a joint venture legally separate from Ford. The venture would shield Ford from potential liability. The agreement, if completed, also would be non-exclusive, meaning Google could negotiate a similar deal with another auto maker, Yahoo Autos reported.

     

    Fields strategy

    A Ford deal with Google would fit within the strategy laid out by Mr. Fields, who last January launched a plan called “Ford Smart Mobility” to bolster the company's expertise in car sharing and other new business models for transportation.

    Ford executives have been dropping hints all year that it could work with Google, Apple or another tech giant to accelerate its quest to bring self-driving cars to market.

    Ford Motor Co. CEO Mark Fields, in a Dec. 11 interview, gave an update on the company's Smart Mobility effort. “It's not about just going from an old business to a new business. It's about going to a bigger business.”

    “It's not only about what are the things that are going to be core to us but who are we going to partner with, in some cases,” Mr. Fields said in a Dec. 11 interview. “Because I don't think we can just be so arrogant to think that we're going to do everything on our own and we're going to do something better than maybe a company that does that 24/7. For us, partnerships are really important.”

    At the same time, auto makers have been wary of working too closely with Silicon Valley technology companies, particularly Google, whose innovations and ability to harvest data might reduce consumers' desire to own a vehicle in the future.

    During a visit last week to Ford's year-old Silicon Valley research facility in Palo Alto, Calif., Mr. Fields signaled that Ford sees new mobility models as a way to grow its business.

    Ford generates roughly 6 percent of the revenue in today's global auto industry, but rival transportation options such as planes and trains add up to another multitrillion-dollar market, Fields said, and of that, “we get zero.”

    During the Palo Alto event, an audience member asked Fields why Ford is developing its own software for self-driving cars, rather than simply striking a deal to use best-in-class software from an outside vendor.

    Mr. Fields joked that Silicon Valley practically invented the concept of “frenemies,” which, in a corporate context, means that companies are willing to simultaneously collaborate on projects and compete against one another.

    Ford's R&D center is working on self-driving software, Mr. Fields said, “but that doesn't mean we won't work with others. I think that's part of the beauty of being here.”

    Such a partnership would mark another step toward the marketplace for Google. Bloomberg reported last week that Google, which is thinking of putting its technology into automated taxis as a rival for Uber and Lyft, may spin off the unit into a standalone business within its new Alphabet Inc. corporate structure in 2016.

    What kind of car?

    It isn't clear whether Ford would design a purpose-built vehicle for Google or supply a standard production car fitted with the sensors and computers that the car needs to guide itself down the road. Ford announced this week that it plans to start testing autonomous Fusion Hybrids on California roads next year.

    Ford's Washington said recently that he expects fully autonomous vehicles to be ready within four years.

    Having Ford build Google's test fleet would save the Silicon Valley tech giant years and billions in development costs. The Ford-built vehicles would use the auto maker's production-ready powertrain as well as safety and emissions components.

    There are already ties between Ford and Google. Google's first generation of 100 self-driving vehicles were assembled in Detroit by Roush Industries, a company closely aligned with Ford. The bubble-shaped cars, as Crain's Detroit Business first reported in 2014, used components from local Detroit area suppliers.

    Thilo Koslowski, lead automotive analyst at Gartner Inc. in Santa Clara, Calif., said it makes sense auto makers would want to work with Google, which could help them catch up to rivals that are pursuing automated driving to differentiate their products.

    And at Google, “the focus has shifted to looking for OEM partners to deploy the technology, rather than considering building their own vehicles,” Mr. Koslowski said. “That makes sense. If Google is interested in bringing the benefit of the technology to consumers, then they need as many partners as possible.”

    Ford and Google are said to have been in talks since at least 2012 on autonomous cars. The two companies also teamed up in 2011 on technology that would help vehicles learn customers' driving habits and get them to destinations more efficiently.

    Ford announced on Dec. 15 that it had secured permission from California to test its own autonomous cars in California. Ford will use hybrid versions of the Ford Fusion in those tests.

    Reporters Nick Bunkley of Automotive News and Dustin Walsh of Crain's Detroit Business contributed to this story, which appeared on the website of Automotive News, a Detroit-based sister publication of Tire Business.

    Related Articles
    Calif. DMV proposes ban on 'driverless' cars
    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Tire Business would love to hear from you. Email your letter to Editor Don Detore at [email protected].

    SIGN UP FOR NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Newsletter Center

    Staying current is easy with Tire Business delivered straight to your inbox.

    SUBSCRIBE TODAY

    Subscribe to Tire Business

    SUBSCRIBE
    Connect with Us
    • Facebook
    • LinkedIn
    • Twitter
    • RSS

    Our Mission

    Tire Business is an award-winning publication dedicated to providing the latest news, data and insights into the tire and automotive service industries.

    tb-logo
    Reader Services
    • Contact Us
    • About Us
    • Site Map
    • Industry Sites
    • Order Reprints
    • Customer Service: 877-320-1716
    Partner Sites
    • Rubber & Plastics News
    • European Rubber Journal
    • Automotive News
    • Plastics News
    • Plastics News China
    • Urethanes Technology
    RESOURCES
    • Advertise
    • Privacy Policy
    • Privacy Request
    • Terms of Service
    • Media Guide
    • Editorial Calendar
    • Classified Rates
    • Digital Edition
    • Careers
    • Ad Choices Ad Choices
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • OPINION
      • CORONAVIRUS
      • AUTO INDUSTRY
      • BUSINESS/FINANCIAL
      • COMMERCIAL TIRE
      • FACTORY FIXES
      • GOVERNMENT & LAW
      • INTERNATIONAL
      • MOTOR SPORTS
      • NEW PRODUCTS
      • RETAIL TIRES
      • SERVICE ZONE
      • SEMA/AAPEX
      • SMALL BUSINESS
      • TIRE MAKERS
      • SPONSORED CONTENT
    • SHOP FLOOR
      • BALANCING
      • DEMOUNTING
      • SAFETY
      • TIRE REPAIR
      • TPMS
      • TRAINING
      • VEHICLE LIFTING
      • WHEEL TORQUE
    • Multimedia
      • VIDEOS
      • PHOTOS
      • PODCASTS
    • Events
      • ASK THE EXPERT
      • LIVESTREAMS
      • WEBINARS
      • SEMA LIVESTREAMS
    • Data
      • DATA STORE
    • Resources
      • DIRECTORY
      • CLASSIFIEDS
    • ADVERTISE
    • DIGITAL EDITION
    • Awards
      • Tire Dealer Humanitarian Award