Volvo Cars’ engineers have worked closely together with Uber’s engineers to develop the “XC90 premium SUVs”.
Volvo Cars have signed an agreement to supply “tens of thousands” of self-driving cars to Uber and it was made official on Monday.
In the deal initially planned back in 2016 by the two companies, Volvo would supply Uber with 24,000 units of “autonomous driving compatible base vehicles” sometime between 2019 and 2021. Then Uber would add its own software system to enable the cars to function driver-less.
According to a statement by Volvo Cars, the base vehicles “incorporate all necessary safety, redundancy and core autonomous driving technologies that are required for Uber to add its own self-driving technology.”
Volvo Cars CEO Hakan Samuelsson said “This opens a whole new segment for us. We are open to deliver to more taxi companies.”
Jeff Miller, Uber’s head of auto alliances, said “The deal puts us on a path towards mass produced self-driving vehicles at scale.”
Both companies did not release financial details, but the deal could be worth more than $1-billion, based on list prices for the cars.
Meanwhile, advocates of self-driving cars claim that deadly traffic accidents can be lessened by eliminating human error.
Trivia: A driverless car is also called “autonomous car” or “unmanned ground vehicle”. These cars are capable of sensing its environment and navigating without human input, and of course, human error.