AV deal one of the largest

Volvo Cars and Ford are collaborating with leading Chinese internet company Baidu to develop and mass produce electric, fully autonomous drive-compatible cars.

China, already a driving force in the global EV market, is tipped to be the single largest market in the autonomous vehicle (AV) field.

IHS Markit predicts China could see 14.5 million AVs sold there by 2040 – nearly half the expected world’s 33 million.

Volvo Cars says it is the first foreign car maker to collaborate this closely with Baidu to jointly develop customised autonomous driving cars.

“The partnership will allow both companies to develop and sell these vehicles to potential Chinese customers, underlining the Swedish company’s aspirations to be the supplier of choice for mobility companies globally,” it says.

Baidu will contribute with its Apollo autonomous driving platform while Volvo will provide access to its car industry expertise and advanced technologies.

“There is a strong development in autonomous drive in China, where Baidu is a leading player, and the market there offers huge opportunities for us as the supplier of choice for autonomous fleets,” Volvo Cars president and chief executive Hakan Samuelsson says.

Baidu president Dr Ya-Qin Zhang says the company looks forward to working with Volvo.

Volvo Cars earlier announced a focus on establishing a leading position in electrification, autonomous drive and new models of car ownership and access.

By the middle of the next decade it expects to generate one third of all annual sales from autonomous cars.

Meanwhile, Ford and Baidu have completed test vehicle modification and will start a two-year project to jointly test the SAE Level 4-capable AVs in Beijing, extending their existing partnership.

Ford is a founding member of the Apollo Committee, an advisory group for Baidu’s Apollo autonomous driving open platform.

“Working with a leading tech partner like Baidu allows us to leverage new opportunities in China to offer innovative solutions that improve safety, convenience and the overall mobility experience,” Ford Autonomous Vehicles LLC president and chief executive officer Sherif Marakby says.

On-road testing is slated to begin by the end of this year.

After testing the vehicles will be capable of operating autonomously within a specific geographic area and under certain weather conditions.

Ford and Baidu have also started to explore new opportunities for cooperation in areas of connectivity, artificial intelligence and digital marketing.