Mercedes-Benz partners with Google to equip its cars with traffic information & automatic rerouting

Mercedes has joined hands with Google, so that it would enable its cars with traffic information as well as automatic rerouting in its cars.

Auto manufacturer has teamed with the multinational technology company so that, customers can experience, 'super computer like performance" in every car with automated driving sensors as it seeks to rival with big majors such as Tesla and Chinese newcomers.

Automakers both new as well as old are racing in order to match the software-powered features pioneered by Tesla, which will allow for vehicle performance, battery range ad self driving capabilities to be updated from a distance.

The German carmaker has agreed to share the revenue with semiconductor maker Nvidia Corp, its partner on automate driving software Since 2020, to bring down the upfront cost of buying expensive high-powered semi conductors, Chief Executive Ola Kaellenius.

You only pay for a heavily subsidized chip, and then figure out how to maximize joint revenue, he stated, reasoning that the sunk cost would be low even if drivers did not turn on every feature allowed by the chip.

But only those customers who would be paying for extra option package will have their cars equipped with Lidar Sensor technology and other hardware for automated "level 3" driving, which have a higher variable cost, Kaellenius stated.

Self-driving sensor maker Luminar Technologies inc, in which Mercedez, which tend to own only small stake, has stated recently the company has struck multi-billion dollar deal with the carmaker to integrate its sensors across a broad range of its vehicle by the middle of the decade, this move helped its shares move up by 25%.

Google partnership

Mercedes stated that, the collaboration with Google will enable it to offer traffic information and automatic rerouting in its cars.

Drivers woule be able to Watch YouTube on the cars entertainment system, when the car is parked or in Level 3 autonomous driving mode, which enable the driver to take their eyes off the wheel on certain roads as long as they can resume control if required.

Other carmakers such as General Motors, Renault, Nissan ad Ford has embedded an entire package of Google services in to their vehicles, providing features like Google Maps, Google Assistant and other applications.

All vehicles on Mercedes upcoming modular architecture platform would also have so-called hyperscreens extending across the cockpit of the car, the company stated on Wednesday.