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Why are more and more car companies working together?

BMW and Mercedes

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Luxury Mercedes cars, for example, BMW and Daimler, the owner of Mercedes, will work together in areas like walking

BMW and Daimler announced a £ 1 billion (£ 880 million) loan this week to develop a series of "mobility services", how the car industry changed.

On the one hand, guided tour guides for German giants, who are planning to use vehicles and drive for buses – are usually powerful rivals and never dreamed of joining.

On the other hand, their covenant was only a line of cooperation between traditional traditions that are being prepared for a last-generation future of uncertainties, and the next generation technologies can improve industry and Silicon Valley than Detroit or Wolfsburg.

Recently, Ford and Volkswagen agreed to "investigate" ways to work on electric and freight vehicles, and Honda invested 2.75 million euros (£ 2.100 million) in the General Motors unmanned drive to start a driver's fleet of drivers.

With Tesla and Daimler, there was a close connection with Volvo and PSA, as well as agreements between automobile and technology companies.

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Waymo is the leader in the automotive sector for cars

What's happening?

"Nobody knows what the future of mobility will be, people get the risk," says Prof. Peter Wells, Director of the Automotive Industry Research Center at Cardiff Business School.

Electric cars, vehicle sharing and autonomous driving are expected to change how automobiles change, reducing the car's fall.

Therefore, the traditional automotive industry is struggling to continue to be important, especially for companies such as Uber and business leaders in the Google business guides to overcome Waymo.

"The development and development of these new technologies cost millions, so it is reasonable to divide more than that burden," says Prof Wells.

"The problem of industry is that its future must be paid."

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Tesla has become the leading manufacturer for plugins worldwide

Electric dreams

Among coaches, they have been committed to working on electric vehicle technology, although sharing in this area is still difficult for industry's competitiveness.

Electric cars are still just part of our road vehicles, but it is expected over the next five years, until regulators fall to the level of emissions of oil and diesel vehicles.

Problem, says David Leggett, editor of the Just-Auto magazine, whose traditional automobile "has not changed the way cars have been in their 100s" and require a faster upgrade process.

"The main challenge is that it is expensive technology. Sudden riders are just enough to compete for the cheap and the gas stations," he says.

The danger, he says, is a new player that can be incredibly different from how to make cars and transport services.

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Self-sharing like Zipcar can transform your relationship with the car, said analyst

Perhaps the best example The US Tesla, led by Elon Musk, has become the only manufacturer of plugins in the world for more than 15 years.

China is also making significant advances in the development of electricity, supported by the Chinese government with generous subsidy.

Sharing your trip, the future driver?

Perhaps the bigger threat would allow coaches to drive members of the group, as the car could have been the owners of the vehicles, unplugging vehicles and buying cars instead of buying or renting.

The Boston Consulting Group expects 2030 US Americans to calculate nearly one million citizens in autonomous vehicles equipped with electric vehicles and self-propelled vehicles for the year 2030.

"The self-owner is still not economically sensible – 95% of the time is stable and loses its value quickly," says Prof Wells. "But when it is shared in the car, it will cost the mileage and the property will be less attractive".

In order to prepare themselves, most automobile companies have launched some mobility services programs to raise money, independently or collaboratively, in the non-driver's car.

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Urban mobility services are more and more cars

For example, Daimler joins its Car2Go auto-sharing service with BMW mobile service operations, including Uber-style ride sharing and a tracking application, including auto, public transport, and car rental trips. as well as scooters.

Uber and Waymo are the target of the challenge, although many car companies want to be partners with defiant technology. Toyota, for example, made $ 500 million in investments last summer, and Nvidia filmmaker works with VW, among other things, in areas such as automobile artificial intelligence.

"There was a lot of fear about the technology companies in the industry, but technology companies slowed down somewhat as difficult as cars were," says Prof Wells.

"Looking at Tesla: it's no lucrative 15 years. It's not an easy industry to make money."

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BMW and Daimler, Harald Krüger, and Dieter Zetsche say they work with other car makers

What happens next?

Later, while automobile companies are joining, agreements are rarely exclusive or involve cross-ownership. On the other hand, they only collaborate in some areas, while others continue to be competitors.

Leggett doubts that we will be able to see meetings of the automobile of the coming years, even though they are tempted.

"Automobile industry fails. Production costs and marketing alignment costs are very high."

Instead, he expects to see more "rationalization", which do not win the market for automakers, and direct strategic agreements between Daimler and BMW.

The companies that continue to adapt will face an unstable future.

"At the end of the day, if the company loses a lot of money, it is difficult to move forward," says Leggett. "Traditional automobiles will be left behind if they have not caught the nectar of new technologies."

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