Ford Motor Company (NYSE:F) and Baidu Inc (NASDAQ:BIDU) teamed have invested in tech company to advance self-driving technology.
The carmaker and search engine are looking to play a role in the budding autonomous driving industry with Velodyne Inc‘s laser radar technology. The company has a series of products under the acronym LIDAR (Light Detection and Ranging) that surveys geographical areas and measures distance using a laser pointer.
Velodyne has used the technology to improve the way we map places in an accurate and high-resolution format. Now, the company is working with Ford to help develop vehicles with safe and effective self-driving capabilities.
The tech company has raised $150 million from the auto company and Baidu to create “low-cost, mass produced sensors,” says Velodyne president Mike Jellen. Ford vehicles will use between two and four of LIDAR’s puck-like sensors.
Velodyne is working with 25 autonomous driving programs and the company predicts it could eventually net 200 million to 300 million sales per year.
In addition to laser technology, self-driving vehicles can use radars and cameras to monitor vehicles and pedestrians within the vehicle’s vicinity.
Ford recently announced that all of its 2017 models will come equipped with Android Auto and Apple CarPlay, linking the cars to cutting-edge technology including music-streaming apps, weather forecast capabilities and AAA services.
F shares are down 0.4% Tuesday. Since hitting a six-month low in July, the stock could now be a good buy for those looking to invest in the automotive industry.
BIDU stock surged 0.5% Tuesday.
