Updated: Head of Digital Transformation at Daimler AG Sascha Pallenberg tweeted that RND's article is bogus and the author who wrote it never talked to any official Daimler spokesperson.
Creating software for vehicles, as well as making them self-driving, is a very difficult task--which until now, only a few have been able or willing to take on. Designing and creating this capability requires a strong desire to be innovative, a good plan, continuous investment in the R&D process, and the resilience to get things done. Not everyone is up for this task, which further underlines the weakness of other automakers and Tesla's advantage. Now we have learned that, in the race for profit, Mercedes has given up on software development and Autopilot, admitting that "we can't win the race."
Mercedes was the first big company to say goodbye to a plan to become an innovative company that would provide new mobility concepts. "We do not participate in any race that we can no longer win," a Mercedes spokesman said, RND reported.
The Mercedes spokesman explained that the decision was mainly made for economic reasons. “The transformation into a mobile service provider is a thing of the past,” he said. "We will move away from this again." He continued to press that the company's investors expect sales, and above all, profit.
Ola Källenius, head of Mercedes-Benz, has cut investment in research and development. The cooperation that had begun with BMW was also terminated by mutual agreement. Automakers wanted to share the huge costs of developing autonomous driving with a Munich-based company. But now it is clear: the business model from this will not emerge in the next few years.
Mercedes admitted that "software is a big stumbling block." Autonomous cars must communicate, analyze, and make decisions at lightning speed, which the company cannot achieve. That is why Mercedes' attention will now be focused not on innovation, but on the creation of conventional cars.
And just as Mercedes returns to focusing on traditional cars, there is a company in California, that continues to take a different approach. Created as a startup, Tesla revolutionized the world with highly coveted electric vehicles that could drive themselves completely. The company continues to invest deeply and often in their electric car and battery development, including work to achieve Full Self-Driving. And, given what we are seeing so far, and with the CEO Elon Musk's projections, all Tesla owners will soon get this opportunity.
© 2020, Eva Fox. All rights reserved.
We appreciate your readership! Please share your thoughts in the comment section below.
About the Author
Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.