BMW, Daimler Unveil Autonomous Driving Partnership

BMW, Daimler Unveil Autonomous Driving Partnership
July 5, 2019

 

Bayerische Motoren Werke Aktiengesellschaft (XETRA: BMW.DE), popularly known as BMW, and Mercedes-manufacturer Daimler AG (XETRA: DAI.DE) Daimler unveiled a new collaboration on Thursday to build autonomous driving technology. The initiative has been taken to address the rapid developments in the automobile market. While the stock of BMW closed at €67.1, up €0.50 or 0.75%, the shares of Daimler closed at €49.03, up €0.01 or 0.03% from the prior close.

In an effort to create self-driving technology, nearly 1,200 engineers from the two German car manufacturers are pairing. The technicians will operate towards driver support technologies, autonomous highway driving, and parking. The companies claim the innovation will be designated with SAE level 4 by market pundits.

In a joint statement, BMW said: “Further talks are planned to extend the cooperation to higher levels of automation in urban areas and city centers.”

Levels of SAE (Society of Automotive Engineers) specify the automation competencies of vehicles vary from 0 to 5. Vehicles with level 4 automation can interfere if anything goes wrong or a device glitch happens. A manual override facility can be accessed by a rider at any time, even though the automobile can conduct all tasks on its own.

Daimler and BMW have stated that they are considering 2024 as a possible year to begin incorporating the technology in automobiles that are sold to the public. The automakers further highlighted that the collaboration is “non-exclusive,” and the research and development will be conducted by associate manufacturers and engineering companies. They stated that the findings would not be held confidential, and other participating firms will gain access to the findings “under license.” Notably, on Tuesday, the two German firms collaborated with nine more firms in publishing a white paper on autonomous vehicles technology named “Safety First for Automated Driving.”

The official statement states that the two firms: “…will focus on joint development of next-generation technologies for driver assistance systems, automated driving on highways and automated parking (all to SAE Level 4). In addition, further talks are planned to extend the cooperation to higher levels of automation in urban areas and city centers. This underscores the long-term and lasting nature of the undertaking, which will extend to encompass a scalable platform for automated driving. The non-exclusive cooperation is also open to other OEMs and technology partners, with results being made available to other OEMs under license.”

The study intends to create global industry norms for managing the risks associated with trucks and self-driving cars. Major think tanks and professionals from the partaking companies are aiming to provide details on the standards and results at auto industry and technology meeting in the forthcoming months.

BMW said the paper’s primary objective is to build a scenario where a self-driven car is demonstrated to be better than one being controlled totally by a human being. Other stakeholders in the study included Audi, Baidu, Continental, Fiat Chrysler, Here Technologies, Infineon, Intel, Volkswagen, and Aptiv.

Separately, in collaboration with Bosch, Daimler is presently concentrating on initiating its pilot program in autonomous vehicles and attain Level 4/ Level 5 accreditation in an urban surrounding. Daimler also aims to make it functional this year. The next major autonomous driving initiative from BMW will be the launch of iNEXT range of vehicles, incorporated with Level 3 technologies. BMW targets launching iNEXT in 2021. Both companies plan to exclusively deploy the outcome of this collaboration in their own car models from the beginning of 2024.

The collaboration is expected to receive a positive response from the market.

Technically, the stock is trading above its 50-day moving average, which acts as firm support. The stochastic oscillator is ascending towards the bullish zone. Therefore, we are expecting the stock to remain bullish in the short-term.

bmw - technical analysis - 5th July 2019

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Andrew Wright

Prior to founding tradersasset.com in 2014, Andrew worked as a proprietary trader, then as a market maker. As a market maker, he traded options in over 100 stocks, he then began trading currency pairs in 2013. Andrew still actively trades both, and prides himself on educating and informing traders on the benefits of both Binary Options and Forex.


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