To compete with Tesla (TSLA.O) and Chinese entrants, Mercedes-Benz (MBGn.DE) said on Wednesday that it has partnered with Google (GOOGL.O) on navigation and would provide “super computer-like performance” in every vehicle equipped with automatic driving sensors.
Automobile manufacturers are vying with I.T. firms to create software systems that consumers will be familiar with.
But automakers also want to maintain control of their clientele and the priceless data their vehicles produce.
Concerning the mid-decade release of its new operating system M.B. O.S. Chief Executive Ola Kaellenius stated at a gathering in Sunnyvale, California, “Every single Mercedes from that point forward will have a supercomputer in it.”
The automaker forecasts software-enabled sales to grow to a high single-digit billion euro amount by the decade’s end from the more than one billion euros ($1.06 billion) it generated in 2022.
Stellantis (STLAM.MI) and General Motors (GM.N) have higher estimates as a percentage of revenue.
“We’re cautious because no one knows how large that potential pot of gold is,” Kaellenius added.
Kaellenius claimed Mercedes’ modular architecture platform cars would feature hyper screens throughout the cockpit and a full set of sensors for automatic driving.
Mercedes-Benz is moving from integrating software from multiple suppliers to controlling its core software. In Wednesday’s presentation, the company stressed its partnership with Nvidia (NVDA.O) for autonomous driving and Google for navigation.
Under the Google partnership, Mercedes-branded Google Maps will provide drivers with Google traffic information, automatic rerouting, and the ability to watch YouTube on the car’s entertainment system when parked or in Level 3 autonomous driving mode.
Mercedes-Benz has received certification in Germany and Nevada for Level 3 driving, which allows drivers to take their eyes off the wheel on certain roads as long as they can regain control.
Google and Mercedes-Benz also agreed to collaborate on Google Cloud data and AI.
General Motors, Renault (RENA.PA), Nissan (7201.T), and Ford (F.N.) have implemented a full suite of Google services inside their vehicles, including Google Maps, Google Assistant, and others.
In a separate announcement, self-driving sensor producer Luminar Technologies Inc (LAZR.O), in which Mercedes holds a tiny investment, announced a multi-billion dollar partnership with Mercedes to integrate its sensors across a wide spectrum of its cars by mid-decade.