Thursday, January 14, 2016

Google and Fords Are Still Confused About Working Together

Google and Fords

So far no confirmed news has surfaced regarding the partnership between the giants

The speculations regarding Ford Motors and Alphabet Inc. to collaborate and come up with a joint venture for the launch of autonomous cars during the Consumer Electric Show (CES) 2016 have not panned out. However, the news is not completely dead as of yet cites The Wall Street Journal.

It was recently published, that the company is still considering about the partnership where it has cited sources close to the companies. As per the deal, a new company will emerge where Ford Motors will manufacture the systems and software required for automotive parts while the search engine giant will be responsible to come up with the self driving software. This means that both the giants will focus on making the best use of their capabilities and deploy their strengths in benefit of the venture.

Google has immense experience when it comes to the experience it has in terms of its present autonomous car workforce. Other than that, Ford is a maestro when it comes to car manufacturing thus such collaboration will benefit both the companies.

According to the Wall Street Journal, the company has devised a detailed report where Bill Ford, the executive chairman has always deterred from technology as he wishes to protect the company’s name by avoiding disruptive technology. Moreover, he is more interested in the ownership of cars. According to The Verge, “Even as US car sales are hitting record highs. Services like Uber and the advent of fully autonomous driving make the concept of on-demand transportation far more practical, and as regulations give way to tech, that's generally seen as bad news for the legacy auto industry.”

The question here arises whether GOOG will benefit from this venture more or Fords. The answer is simple; a collaboration where Ford is making components for cars and Google is the software provider will not benefit Ford much. There are so many automotive based companies in contrast to tech firms that offer high end autonomous car driving systems are actually quite saturated in number. This makes Fords quite replaceable. So if the deal is not according to the likes of Google then Fords might have to suffer to a great extent as speculated.

So far both the tech companies have shown no sign that the partnership will take place this week during the Detroit Auto Show. However, there are several auto shows that are scheduled in the coming month which can reveal about more happenings. Thus, fingers are crossed regarding the collaboration.

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