news/GOOG/2023.02.22/Mercedes-Benz cars to have 'supercomputers', unveils Google partnership.txt

BERLIN, Feb 22 (Reuters) - Mercedes-Benz said
on Wednesday it has teamed up with Google on
navigation and will offer "super computer-like performance" in
every car with automated driving sensors as it seeks to compete
with Tesla and Chinese newcomers.Carmakers are racing to develop software systems with tech
companies that customers will recognize. But the car companies
also want to keep control over their customer relationships as
well as valuable data generated by their cars."Every single Mercedes from that point forward will have a
supercomputer in it," Chief Executive Ola Kaellenius said at an
event in Sunnyvale, California, referring to the mid-decade
launch of its new operating system MB.OS.The carmaker generated more than one billion euros ($1.06
billion) from software-enabled revenues in 2022 and expects that
figure to rise to a high single-digit billion euro figure by the
end of the decade.This is a more conservative estimate as a proportion of
total revenue than others like Stellantis and General
Motors have put forward."We take a prudent approach because no-one knows how big
that potential pot of gold is at this stage," Kaellenius said.Vehicles on Mercedes' upcoming modular architecture platform
will have so-called hyperscreens extending across the cockpit of
the car and a comprehensive set of sensors for automated
driving, Kaellenius said.Mercedes-Benz is moving from a patchwork approach of
integrating software from a range of suppliers to controlling
the core of its software. But the company emphasized in
Wednesday's presentation that its strategy was to work with
partners like Nvidia for autonomous driving and Google
for navigation.Under the Google partnership, Google Maps will be
Mercedes-branded and provide drivers with Google traffic
information and automatic rerouting, as well as the ability to
watch YouTube on the cars' entertainment system when the car is
parked, or in Level 3 autonomous driving mode.Level 3 driving, for which Mercedes-Benz has received
certification in Germany and Nevada in the United States, allows
a driver to take their eyes off the wheel on certain roads as
long as they can resume control if needed.Google and Mercedes-Benz also agreed to explore further
collaboration with Google Cloud data and artificial intelligence
capabilities.Others carmakers like General Motors, Renault,
Nissan and Ford have embedded an entire package
of Google services into their vehicles, offering features like
Google Maps, Google Assistant and other applications.Self-driving sensor maker Luminar Technologies Inc,
in which Mercedes owns a small stake, said in a separate
statement it had struck a multi-billion dollar deal with the
carmaker to integrate its sensors across a broad range of its
vehicles by mid-decade.Shares in Luminar jumped more than 25% following the
announcement.
($1 = 0.9430 euros)
(Reporting by Victoria Waldersee, Hyunjoo Jin in Sunnyvale, Joe
White in Detroit; Editing by Rachel More, Sharon Singleton and
Jane Merriman)