Volvo, Uber Team Up on Self-Driving Cars

Volvo Car Corp. and ride-hailing giant Uber Technologies Inc. have agreed to work together to develop a platform for self-driving vehicles. The partners will contribute a combined $300 million to the program.

Under the deal, the companies will co-develop a “base vehicle” using Volvo’s Scalable Product Architecture, which provides the basis for the XC90 SUV, S90 sedan and V90 wagon. Uber and Volvo engineers will collaborate to add additional safety, redundancy and other features to enable fully autonomous driving, according to the companies.

Uber will buy the base vehicles from Volvo, which will build them in Sweden, then add its own autonomous driving systems. Volvo says it will use the same base model for the next stage of its own autonomous car strategy.

The partners haven't revealed a timetable. But media reports say Uber will begin offering self-driving capabilities in some of its ride-hailing vehicles near its Pittsburgh technical center by the end of this year. These vehicles initially will have an Uber “backup” driver, who can take control of the vehicle if needed, according to the reports. It isn’t clear if Volvo or another carmaker will supply these vehicles.

Volvo will begin pilot testing a fleet of XC90 vehicles equipped with advanced driver-assist functions next year in London and Gothenburg, Sweden. The company previously has said it aims to commercialize the technology in the early 2020s.