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Two people sit abreast in the tiny pod-shaped car, which has a flexible windshield for safety and is topped by a spinning cone that helps navigation. Nowhere is the disconnect more evident than in Google's latest prototype. But car companies, all too familiar with the devastating financial and brand damage of recalls, would see any hiccups with the self-driving car as a threat to their main business. “Automakers are not sure if Google is their friend or their enemy, but they have a sneaking suspicion that whatever Google’s going to do is going to cause upheaval in the industry.”Īnalysts estimate Google has invested tens of millions of dollars in an effort that’s ultimately a side project. “The auto companies are watching Google closely and trying to understand what its intentions and ambitions are,” said one person familiar with the auto industry, who asked to remain anonymous because of sensitive business relationships. The alternative is to spend potentially billions of dollars to try to break into a century-old industry in which it has no experience. But Google’s hopes of making autonomous cars a reality may eventually require working with Detroit, even the California company acknowledges. It was as if the two were “talking a different language,” recalls one person who was present.Īs Google expands beyond Web search and seeks a foothold in the automotive market, the company’s eagerness has begun to reek of arrogance to some in Detroit, who see danger as well as promise in Silicon Valley.įor now Google is moving forward on its own, building prototypes of fully autonomous vehicles that reject car makers’ plans to gradually enhance existing cars with self-driving features. The Internet search company and the automaker disagreed on almost every point, from car capabilities and time needed to get it to market to extent of collaboration.

In one meeting, both sides were enthusiastic about the futuristic technology, yet it soon became clear that they would not be working together. SAN FRANCISCO/DETROIT, June 30 (Reuters) - In 2012, a small team of Google Inc engineers and business staffers met with several of the world’s largest car makers, to discuss partnerships to build self-driving cars.

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