Monitoring Desk
ISLAMABAD/BERLIN: Mercedes-Benz said it has teamed up with Google on navigation and would offer “super computer-like performance” in every vehicle with automated driving sensors as it seeks to compete with American automaker Tesla and Chinese newcomers.
According to Reuters, fresh and old automakers are racing to match software-powered features pioneered by Tesla allow for vehicle performance, battery range, and self-driving capabilities to be updated from a distance.
Chief Executive Ola Kaellenius said that the German vehicle maker agreed to share revenue with semiconductor maker Nvidia Corp, its allies on automated vehicle software since 2020, to bring down the upfront cost of buying expensive high-powered semiconductors.
“You pay for a heavily subsidized chip and then figure out how to maximize joint revenue,” he said, reasoning that the sunk costs would be low even if drivers didn’t turn on every feature allowed by the chip.
Kaellenius said that customers paying for the extra option package would have cars equipped with Lidar sensor technology and other hardware for automated “Level 3” driving, with a higher variable cost.
Mercedes technology
Self-driving sensor maker Luminar Technologies Inc, where Mercedes-Benz owns a small stake, said it struck a multi-billion dollar deal with the carmaker to integrate it across a broad range of its vehicles by the middle of the decade, sending Luminar shares up over 25 percent.
