FRANKFURT - BMW rivals and ride-hailing companies are considering joining its consortium for developing self-driving cars as auto industry profits come under increasing pressure, board member Klaus Froehlich said on Tuesday.
Carmakers and ride-hailing companies have sought to build self-driving cars as a way to enter the business of smartphone-hailed robotaxis. However, they are entering a crowded field where the likes of Apple and Alphabet Inc have been pouring billions of dollars into cars that can drive themselves.
“Unfortunately, everybody thought they would be the winner and would have an enormous ride-sharing business,” BMW board member Klaus Froehlich told Reuters on the sidelines of the Paris Motor Show.
BMW, however, wanted to spread the cost of investment and started a consortium that now includes Mobileye, Magna (MG.TO), Fiat Chrysler (FCHA.MI) and auto suppliers Delphi Automotive and Continental AG.
The technology is proving complex and the returns on investment are taking longer to materialize, causing investors to scrutinize whether go-it-alone strategies make sense.