JAKARTA - Mercedes-Benz has recently collaborated with Google in terms of navigation and will offer "super computer-like performance" in each car with an automatic driver sensor. This is done in a bid to compete with Tesla and a new car manufacturer from China.
New and old automakers are currently competing to match features supported by software pioneered by Tesla. The feature with computability allows the vehicle's performance, battery range, and driver's ability to be up-to-date remotely.
According to Mercedes CEO Ola Kaellenius on Wednesday, February 22, the German car company has also agreed to share revenue with semiconductor maker Nvidia Corp, its partner in automated driver software since 2020, to lower its initial cost of purchasing expensive high-power semiconductors.
Joining forces with @Google: We will be the first automaker to build our own branded navigation experience based on new in-car data and navigation capabilities from the Google Maps Platform. https://t.co/VenROLbGTk#MercedesBenz pic.twitter.com/gkmM2zVYuJ
— Mercedes-Benz (@MercedesBenz) February 22, 2023
"You only pay for highly subsidized chips, and then look for ways to maximize shared income," Kaellenius said. They argued that the initial cost was low even if the driver did not activate any of the features allowed by the chip.
However, only customers will pay for an option package that will have cars equipped with Lidar sensor technology and other hardware for autonomous driving "Level 3", which costs higher variables.
Luminar Technologies Inc, the maker of self-driving sensors in which Mercedes owns small shares, announced last Wednesday that it had reached a multibillion-dollar deal with the automaker to integrate their sensors on various types of Mercedes vehicles in the middle of the decade. This statement has made Luminar's shares rise by more than 25%.
Mercedes' announcement Wednesday in Sunnyvale, California, detailed the strategy behind years of ongoing processes at the auto company to shift from half-hearted approaches that integrate software from multiple suppliers to control its software core and bring in partners.
Mercedes has generated more than a billion euros (Rp16.6 trillion) from software-backed revenue by 2022 and expects that figure to rise to billions of euros in the middle of the decade after they launch the new operating system MB.OS.
This is a more conservative estimate as a proportion of total revenue compared to other auto companies such as Stellantis and General Motors.
"We take a careful approach because no one knows how much potential this profit is at this stage," said Kaellenius.
Mercedes said cooperation with Google would allow them to offer traffic information and automatic diversion in their cars.
Drivers will also be able to watch YouTube on the car's entertainment system when the car is parked or in Level 3 autonomous driving mode, which allows drivers to take their eyes off the wheel on certain roads as long as they can continue to control if necessary..
Other automakers such as General Motors, Renault, Nissan and Ford have also embedded all Google service packages into their vehicles. It even offers features like Google Maps, Google Assistant, and other apps.
All vehicles on the upcoming Mercedes modular architecture platform will also have so-called hyperscreens stretched across the cockpit of the car, the company said on Wednesday.
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