As the automobile industry enters the autonomous driving era, American carmakers Ford and GM have cashed in on their bids to become world leaders in driving innovations.
On Friday, Ford launched its Smart Mobility LLC, a subsidiary focused on developing advanced driving technologies while GM announced its acquisition of Cruise Automation, a company focused on self-driving technology.
Ford CEO Mark Fields stated that though the Smart Mobility division would be investing in transportation services companies, the subsidiary would also have the capability to develop new advancements in automotive technology.
"Their remit is to design, build, grow, and in some cases invest in, new mobility services," he said.
Ford board member and former CEO of Steelcase Jim Hackett would serve as the chairman of Ford Smart Mobility LLC. Hackett is known to have overhauled Steelcase by forging ties with Silicon Valley during his tenure. Thus, his massive network in the hub of technology would help the new venture a lot.
On the other hand, GM's acquisition of Cruise Technologies is seen as the company's decision to integrate the software company to its vehicles. The company, which was founded in 2003, made a huge mark in the automotive industry after developing an advanced software that equipped conventional cars with autopilot capabilities.
Eventually, Cruise Technologies set their sights on full driverless innovations. In fact, through the company's tenure, it became one of the few firms that were able to get a permit from the California Department of Motor Vehicles to field test autonomous vehicles on public roads.
With GM's acquisition of Cruise Technologies, the American carmaker would be able to use the software firm's latest developments for its upcoming vehicles. Kyle Vogt, founder and CEO of Cruise, stated that GM and his firm share a common goal.
"We share a common vision with GM for how autonomous vehicles will change the world. We were already on that path, and we remain on the path," he said.
It's not just self-driving technologies that GM have invested in, as well. A couple of months ago, GM bought assets of Sidecar Technologies Inc., a ride-hailing company in San Francisco. It also invested in Lyft, planning on a ride-hailing service that allows people to book rides on a self-driving car.
Neither Ford nor GM has announced the cost of their new ventures.
