Volvo Cars, Alphabet’s Waymo partner to build self-driving vehicles

Waymo and the Volvo Cars Group have agreed to develop a self-driving electric vehicle designed for ride hailing use, as part of a new global partnership, the companies said on Thursday.

Waymo, a unit of Silicon Valley's Alphabet Inc, said it will be the exclusive global partner for Volvo Cars for developing self-driving vehicles capable of operating safely without routine driver intervention.

Waymo will focus on the artificial intelligence and certain hardware, including cameras, lidar and radar, for the automated "driver." Volvo will design and manufacture the vehicles. The companies said Waymo will work with Volvo's global brands, including Polestar and Lynk & Co.

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Volvo, owned by China's Zhejiang Geely Holding Group Co , has a separate agreement to deliver vehicles to ride hailing company Uber Technologies Inc that Uber will equip to operate as self-driving vehicles. Volvo Cars is continuing to deliver vehicles to Uber.

Uber's development of self-driving vehicle technology was disrupted after a self-driving Volvo SUV operated by Uber struck and killed a pedestrian in Arizona in 2018. More recently, Uber has been slashing costs and staff to offset revenue lost to the coronavirus pandemic. Chief Executive Dara Khosrowshahi has said Uber is open to using competitors' technology. 

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The Waymo-Volvo deal marks a return by Waymo to its early goal of rethinking how cars that can pilot themselves should look. Since retiring its Firefly self-driving car in 2017, Waymo has retrofitted its software and sensors into conventional vehicles such as Chrysler Pacifica minivans. Waymo also is developing technology for self-driving commercial trucks.

Waymo earlier this year raised $3 billion in its first external investment round.

Rival Cruise, majority-owned by General Motors Co, last year unveiled a prototype for an electric, self-driving people carrier called the Cruise Origin.

Waymo said it will continue working with Fiat Chrysler, Jaguar Land Rover and the Renault Nissan Mitsubishi Alliance.