Google share price down, boosts efforts in self-driving vehicles

Google Inc has initiated negotiations with the worlds major car companies to speed-up the development of self-driving vehicles and release them by 2020.

The internet giant has not yet decided whether to participate in the self-driving vehicle market as a manufacturer or a supplier of technology to already proven carmakers.

“Wed be remiss not to talk to … the biggest auto manufacturers. Theyve got a lot to offer,” Chris Urmson, director of Googles self-driving car project, said at the Detroit auto show on Wednesday.

Googles autonomous car was assembled in Detroit by the Ford after-market parts specialist Roush. However, the Mountain View, California-based company said it has brought together a group of suppliers in order to bring the self-driving technology to the market within five years.

Robert Bosch, Continental, ZF and LG Electronics are part of that team, Mr. Urmson said. Google is also working with Nvidia, which delivers the microprocessors used in the companys concept vehicles.

The company has also entered in manufacturing discussions with carmakers, including Toyota, Daimler, owner of Mercedes, Volkswagen and Ford among others.

General Motors and Fiat Chrysler have confirmed that they have held discussion with Google related to self-driving vehicles. On Monday, at the same conference, GMs chief technology officer Jon Lauckner said that the company is interested in combining efforts with Google.

Google projection to release self-driving cars to public roads by 2020 falls in line with that Teslas founder and CEO Elon Musks estimate. However, Mr. Musk said on Tuesday that the launch of the autonomous vehicles may be postponed to 2022 or 2023 due to unclear federal regulations.

“Just like any car built for use on US roads, any autonomous vehicle would need to meet applicable federal motor vehicle safety standards, which fall under NHTSA jurisdiction,” a spokesman for the agency said. However, the The National Highway Traffic Safety Administration have not yet set solid regulations related to the self-driving industry.

Mr. Urmson also said the technologies utilized in those vehicles, including numerous radars and lasers located on the roof, cost around $75 000, but projected that the price would fall as volumes grow.

However, he warned that the vehicles will not always be able to avoid crashes.

“There will be failures of these vehicles,” Mr. Urmson said. “We need to get to the point where we accept that.”

Google Inc gained 0.95% on Wednesday and closed at $500.87 in New York, valuing the company at $338.50 billion.

According to CNN Money, the 40 analysts offering 12-month price forecasts for Google have a median target of $632.00, with a high estimate of $750.00 and a low estimate of $530.00. The median estimate represents a +26.18% increase from the last close price.