Geely’s shares soared as much as 10% in Hong Kong, while
Baidu gained 2% in New York. The pair may announce their new venture as early
as next week, the person said, asking not to be identified talking about a
private deal.
China’s internet search leader picked the fast-growing carmaker
after discussions with potential partners including closely held WM Motor,
Guangzhou Automobile Group Co. and FAW Group, the person said. It will control
the venture with a majority stake, the person added. Reuters first reported on
the deal.
The tie-up marks a significant expansion into auto-making
for Baidu, which has for years touted its Apollo open-sourced platform to help
manufacturers build autonomous driving and connectivity into their products.
The move precedes a Hong Kong share sale that’s said to be on track to raise
$3.5 billion to fuel the search giant’s ambitions beyond advertising.
Baidu’s venture with Geely is intended to push Apollo’s
adoption in more vehicles, the person said. It will start by building EVs for
the world’s largest vehicle arena at Geely plants, though it’s unclear if the
partners intend to eventually also produce self-driving cars. Representatives
for the two companies declined to comment.
The platform, which has been described as an Android for
automobiles, has about 130 members including Volkswagen AG, Ford Motor Co., BYD
Co., Microsoft Corp. and Geely’s own Volvo Cars.
Baidu aims to monetize Apollo, which the company has sunk
billions of dollars since 2015. While advertising remains its bread-and-butter,
the company has made bets to commercialize its AI technology through
self-driving cars and smart speakers. Carmakers like WM Motor and Geely already
employ Baidu’s autonomous techniques, and it has won government deals to
develop transport networks and test robo-taxis in cities like Guangzhou and
Chongqing.
Baidu’s move underscores how global internet giants are
firming up plans to get their technology in front of car buyers who
increasingly prize connectivity and smart features over traditional driving
mechanics.
Apple Inc. is said to have created a team of engineers
developing drive systems, vehicle interior and external car body designs with
the goal of eventually shipping a vehicle. Alibaba Group Holding Ltd. has
formed a venture with Chinese giant SAIC to explore smart vehicles.
0 comments:
Post a Comment