Toyota to invest $2.8 billion in self-driving car project

Toyota to invest $2.8 billion in self-driving car project

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Japan: Japanese automaker Toyota is planning to invest 300 billion yen ($2.8 billion) with two of its suppliers to form a new company dedicated to the research and development of self-driving vehicles.

The main objective of this development is to develop “production-quality software” for automated driving. Toyota will own 90% of the company. It will start off with 300 employees, eventually rising to 1,000.

“This company’s mission is to accelerate software development in a more effective and disruptive way,” James Kuffner, CEO of the new company said in a statement. Developing reliable software for the futuristic cars remains a key technological hurdle, as evidenced by the messy trade secrets lawsuit waged between Google’s self-driving venture Waymo and ride hailing start-up Uber.

Toyota is just the latest major carmaker to pour big money into self-driving technology. Volkswagen and Hyundai both recently struck deals with Silicon Valley startup Aurora Innovation to develop autonomous vehicles. General Motors has also said it will mass produce fully autonomous electric cars by the end of 2019.

They are all battling big tech companies in the race to be king of the computer-driven road. Google has poured more than $1 billion into Waymo, and ride hailing start-ups Lyft and Uber are also heavily invested in autonomous cars.