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Ford Plans To Spend $4 Billion On Autonomous Vehicles By 2023 (techcrunch.com)

An anonymous reader quotes a report from TechCrunch: Ford Motor plans to spend $4 billion through 2023 in a newly created LLC dedicated to building out an autonomous vehicles business. The automaker announced Tuesday it has created Ford Autonomous Vehicles LLC, which will house the company's self-driving systems integration, autonomous-vehicle research and advanced engineering, AV transportation-as-a-service network development, user experience, business strategy and business development teams. The $4 billion spending plan includes a $1 billion investment in startup Argo AI. The new LLC will be primarily based at Ford's Corktown campus in Detroit and will hold Ford's ownership stake in Argo AI, the company's Pittsburgh-based partner for self-driving system development.

55 comments

  1. Compare Tesla total R&D on cars, batteries, au by raymorris · · Score: 4, Interesting

    For scale, that's similar to Tesla's total R&D budget on everything (batteries, motors, the overall car, autopilot, etc). It represents about 12% of Ford's total R&D.

  2. "X-as-a-service" by Anonymous Coward · · Score: 0

    Translation (as always): You no longer own or control the fundamental tools that you use to function in the world, and your entire life can (and will) be upended by anything from corporate whims to a short period of personal financial stress.

    You can pry my Corolla from my cold dead hands.

    1. Re:"X-as-a-service" by Anonymous Coward · · Score: 0

      You can pry my Corolla from my cold dead hands.

      Nobody wants it, you myopic jackass. It's just a short-term car rental. Do you think ZipCar is plotting to send sappers in the night to firebomb your fucking Corolla too?

    2. Re:"X-as-a-service" by Anonymous Coward · · Score: 0

      40 years from now when/if autonomous cars finally become a widespread thing, one day some drunk asshole in a beat-up 2029 F150 will pass out at the wheel and mow down a crowd of pedestrians, and a 70-pound teenage bystander named Havid Dogg will wage a media war to get human-powered cars banned once and for all.

    3. Re:"X-as-a-service" by Anonymous Coward · · Score: 0

      And what does your little persecution-fantasy fanfiction have to do with personal ownership? Or is your attention span so short that you've already forgotten what it was you were whining about to begin with?

    4. Re:"X-as-a-service" by Anonymous Coward · · Score: 0

      I wanted to write a longer reply but I can't afford my Google subscription this month and my browser is going to stop working in 10 seco...

    5. Re:"X-as-a-service" by kilfarsnar · · Score: 1

      40 years from now when/if autonomous cars finally become a widespread thing, one day some drunk asshole in a beat-up 2029 F150 will pass out at the wheel and mow down a crowd of pedestrians, and a 70-pound teenage bystander named Havid Dogg will wage a media war to get human-powered cars banned once and for all.

      Relax dude, no one is taking your guns away.

      --
      "What the American public doesn't know is what makes them the American public." -Ray Zalinsky (Tommy Boy)
    6. Re:"X-as-a-service" by sycodon · · Score: 1

      I"m really surprised at the number of slashdotters who are into this self driving car thing when they have seen first hand how unreliable and fucking stupid Computers/Software can be.

      How much money has Microsoft spent on Windows?

      How many times do you have to restart it during the day?

      That's your self driving car.

      No Thanks.

      "It will never work"
        - Rocky the Squirrel from Rocky and Bullwinkle

      --
      When Fascism comes to America, it will call itself Anti-Fascism, and tell you to give up your guns.
    7. Re:"X-as-a-service" by Anonymous Coward · · Score: 0

      On the average, I have to restart Windows approximately .01 times per day, because those are the times I forgot to charge my laptop.

      Look, I'm sorry you're still bitter about the time you lost a +5 Vorpal Sword because you forgot to save your Baldur's Gate game before Win98 crashed. But that doesn't magically negate the progress that's happening right in front of you, no matter how much you want it to for whatever stupid reason.

    8. Re:"X-as-a-service" by Anonymous Coward · · Score: 0

      I"m really surprised at the number of slashdotters who are into this self driving car thing when they have seen first hand how unreliable and fucking stupid Computers/Software can be.

      There is a hell of a difference between systems developed by code monkey and systems developed according to the standards for safety critical applications.
      The main problem is that some self driving cars are developed by people not following the standards and the regulators doesn't know that the law actually requires it.
      Hopefully Fords developers know better.

      How much money has Microsoft spent on Windows?

      Well, you are probably not going to use Windows. There are operating systems made for applications like this.

    9. Re:"X-as-a-service" by Anonymous Coward · · Score: 0

      Ah yes, Google, the only browser.

  3. AVs in 5 years! by Anonymous Coward · · Score: 0

    When I worked there (in low-level electronics security) in 2014 and 2015, they said they'd have fully autonomous vehicles in 5 years. I used to laugh and laugh (while many of my coworkers actually bought into that koolaid). Just 2 more years, right, guys?

  4. Detroit? by Anonymous Coward · · Score: 0

    Good luck getting decent ai people to live in Detroit.

    1. Re:Detroit? by Anonymous Coward · · Score: 0

      Detroit has suburbs that would take your breath away.

    2. Re:Detroit? by jfdavis668 · · Score: 4, Funny

      Permanently

    3. Re: Detroit? by Anonymous Coward · · Score: 0

      I'm Connor, the android sent by Cyberlife.

    4. Re:Detroit? by Anonymous Coward · · Score: 0

      Money talks

  5. Just go full Bolt by AHuxley · · Score: 1

    Chevrolet Bolt https://en.wikipedia.org/wiki/...
    Get S Korea to do the battery, motor, and drive unit.
    Add a pretty GUI.

    --
    Domestic spying is now "Benign Information Gathering"
  6. $1.1 billion wasted by hwihyw · · Score: 1

    Does this mean they will not be buying self driving AI from Google? Which Google spent $1.1 billion on? No worries, I'm sure another car maker will use Google tech, just like Google is using search algorithms developed by Pep Boys.

    1. Re:$1.1 billion wasted by Anonymous Coward · · Score: 0

      Google drops things when they are not interesting. Someday, autonomous cars are going to be not interesting.

    2. Re: $1.1 billion wasted by phantomfive · · Score: 1

      If Google gets self-deceiving tech first (level 1 or level 2) then Ford will license it. Otherwise, if Ford gets there first, they will have a huge competitive advantage over other automakers.

      --
      "First they came for the slanderers and i said nothing."
    3. Re: $1.1 billion wasted by Anonymous Coward · · Score: 1

      Level 2 is lane assist, cruise control and possible automatic braking. (Autonomous car classification)
      I am pretty sure Ford already have cars with those.
      Automatic braking and a navigator might take it into level 3, the definition isn't that clear.
      The navigator you will give you the "request to intervene" when you need to do something beyond following a lane.

      I'm pretty sure that Ford is aiming at at level 4.
      $4 billion seems a bit too much for technology they already have.

    4. Re: $1.1 billion wasted by Bongo · · Score: 1

      If Google gets self-deceiving tech first (level 1 or level 2) then Ford will license it. Otherwise, if Ford gets there first, they will have a huge competitive advantage over other automakers.

      Uber already has self-deceiving tech, methinks.

  7. Detroit by Anonymous Coward · · Score: 0

    Why do some of you think this wouldnâ(TM)t be a good thing for people of Detroit? They can learn

  8. My Plan: by Anonymous Coward · · Score: 0

    I plan to spend $4 Trillion to cure male pattern baldness by 2030.

    With either plan and $5 you can get a cup of shitty coffee and Starsucks.

  9. Which Ford vehicles exactly? by theurge14 · · Score: 2

    They just announced the only thing they're sticking with is the Mustang, the F-150s and bunch of SUVs.

    1. Re:Which Ford vehicles exactly? by drinkypoo · · Score: 1

      And also another small car, a tall focus or fiesta or something. But it's expensive vehicles that will be autonomous first, because autonomy is expensive. The other kind of vehicle that they will still produce here that you forgot is the Transit, which is the vehicle you can expect to see automated first, for transit fleets.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    2. Re:Which Ford vehicles exactly? by Anonymous Coward · · Score: 0

      As a Focus ST owner, this pissed me off to no end. I can only hope it's a re-branding effort and their cars will be on offer from Lincoln while Ford transitions to all trucks...

    3. Re:Which Ford vehicles exactly? by RespekMyAthorati · · Score: 1

      High-end SUV's probably.

  10. Won't matter by nehumanuscrede · · Score: 1

    Even if they released the tech tomorrow, it will be a decade before it's affordable enough for normal folks to even consider it. It's also a very disruptive
    tech for established business models, so expect it to be hampered every step of the way by folks who have lots of money and influence.

    Companies like to make ludicrous claims such as these all the time. Hell, my own company made claims of how amazing we are going to be by 2020
    until ( as we are only 1.5 years out ) they have started to realize that reality has different plans. Grandiose transformations typically require grandiose
    amounts of money to do it with. ( Which they're not willing to spend )

    Guessing that ' amazing ' part may materialize by 2030 or maybe 2040. . . . . lol

    Maybe

    Moral of the story: I'll believe it when I see it.

  11. Re:Compare Tesla total R&D on cars, batteries, by Trogre · · Score: 1

    True, but now that Ford have publicly committed to tossing that amount down the toilet, it will give smaller companies a better chance at competing.

     

    --
    "Nine times out of ten, starting a fire is not the best way to solve the problem." - my wife
  12. Why a separate company (LLC)? by jezwel · · Score: 1

    Smells of risk avoidance if they spin out the company immediately. What other benefit is there?

    1. Re:Why a separate company (LLC)? by ishmaelflood · · Score: 2

      That's an interesting question. My guess is salaries and management structure. Salaries at Ford are linked to your grade, and the brackets for each grade are fixed. So if you want to bring a rock star on board, you have to give them a high grade. Later on when they want to move around there will be no positions they have the training or experience for outside of their field.

      Risk avoidance could be part of it. If there is a class action perhaps it would be FAV that gets hit with a penalty sufficient to damage the business, That doesn't seem likely to me, the parasites will go after the deepest pockets.

    2. Re:Why a separate company (LLC)? by Anonymous Coward · · Score: 0

      Liability.

      Can't risk ford if some one gets hit by an autonomous car.

    3. Re:Why a separate company (LLC)? by Anonymous Coward · · Score: 0

      Unions. The employees of the spin off company won't be under union constraints or protections.

  13. 6,000 engineers for 5 years, 300 of those great by raymorris · · Score: 4, Interesting

    A billion per year will get them about 6,000 engineers and coders in the area.

    Let's assume they aren't great at hiring, so 20% of the engineers don't do anything more useful than filling out change forms and other paperwork for the decent engineers.

    Assume 30% of them can do fairly simple tasks competently, such as writing a module according the requirements written by a more experienced person. That's 2,000 engineers doing the grunt work, basically competent coders, but don't deserve the "engineer" title.

    35% know how to write requirements for a user story and can code it up.

    10% come up with good approaches to interesting, but not terribly difficult, problems.

    5%, or 300 of them, are very good. These are the people who come up with really good ideas that significantly improve the project.

    Give me that team for five years and we'll come up with something pretty darn cool.

    Looking at it another way, given 100 years to work on it, I could do it. 100 years is a long time. A hundred years of my time would cost them $15 million. They're spending $4 billion. They need to achieve 0.3% efficiency to pull it off.

    1. Re:6,000 engineers for 5 years, 300 of those great by drinkypoo · · Score: 1

      If they spent all the budget on headcount, they'd have a bunch of employees sitting around finger-twiddling because they wouldn't have anything to work on, or with. Four billion isn't what it used to be. It costs a billion plus just to design a new auto... With EXISTING personnel.

      --
      "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
    2. Re:6,000 engineers for 5 years, 300 of those great by Anonymous Coward · · Score: 0

      A billion per year will get them about 6,000 engineers and coders in the area.

      Let's assume they aren't great at hiring, so 20% of the engineers don't do anything more useful than filling out change forms and other paperwork for the decent engineers.

      Assume 30% of them can do fairly simple tasks competently, such as writing a module according the requirements written by a more experienced person. That's 2,000 engineers doing the grunt work, basically competent coders, but don't deserve the "engineer" title.

      35% know how to write requirements for a user story and can code it up.

      10% come up with good approaches to interesting, but not terribly difficult, problems.

      5%, or 300 of them, are very good. These are the people who come up with really good ideas that significantly improve the project.

      Give me that team for five years and we'll come up with something pretty darn cool.

      Looking at it another way, given 100 years to work on it, I could do it. 100 years is a long time. A hundred years of my time would cost them $15 million. They're spending $4 billion. They need to achieve 0.3% efficiency to pull it off.

      Haha, somehow I knew you'd find a way to put yourself in that 5%.

  14. Motor Trend car of the year by raymorris · · Score: 2

    I see the Bolt is Motor Trend's car of the year. I also notice it's currently outselling Tesla. I think this article is about autonomous vehicles, though.

    1. Re:Motor Trend car of the year by AHuxley · · Score: 1

      Ask S Korea to make that too? Bolt on another upgrade?

      --
      Domestic spying is now "Benign Information Gathering"
    2. Re:Motor Trend car of the year by b0bby · · Score: 2

      I see the Bolt is Motor Trend's car of the year. I also notice it's currently outselling Tesla. I think this article is about autonomous vehicles, though.

      I like the Bolt, but it's not even close to outselling Tesla. They are selling around 1000-1500 a month since January - Tesla sold 1800 Model 3s alone in January, and they'd ramped up to over 6000 in both May and June. Plus in June they also sold ~5000 Model S & Xs. In June Volt and Bolt sales combined were under 2500.

      https://insideevs.com/june-201...

    3. Re:Motor Trend car of the year by samwichse · · Score: 1

      It's outselling Tesla? By what metric? Source?

  15. Re:Compare Tesla total R&D on cars, batteries, by aaarrrgggh · · Score: 1

    I don't think it is really an apples-to-apples comparison though; what Ford calls R&D is generally heavily focused on development rather than research, and is done so for tax treatment.

    Ford likely needs to spend significantly more to actually develop a marketable product from this investment.

  16. Tesla R&D "how to run an assembly line". 1913 by raymorris · · Score: 1

    On the other hand, Ford's R&D each year builds on all the R&D they've done over the last 115 years.

    Elon Musk said their production was slowed because they are trying to figure out how to run an assembly line. They bought machines that were slower than doing it by hand, so they had to throw the machines away. Tesla is trying to figure out how you organize a line to produce 5,000 cars / week, Ford was doing that in 1913. Which puts Ford 105 years ahead of Tesla on the "how to make cars" thing, which is kinda important for a car company.

  17. Another Win For Trump by Anonymous Coward · · Score: 0

    Thanks, Mr. President, for incentivizing business growth in distressed communities! Jobs, jobs, jobs!

  18. Re:Tesla R&D "how to run an assembly line". 19 by Anonymous Coward · · Score: 0

    They will not need 105 years to improve though. Unlike Ford, who is happy with just producing shit, the production goal is just a stepping stone to greater things.

  19. Re:Tesla R&D "how to run an assembly line". 19 by The+Cynical+Critic · · Score: 1

    There's running an assembly line, which Tesla has obviously mastered seeing how they made over 100.000 cars in 2017, and then there's running an assembly line at the speed Elon wants the Model 3 line to run at. To put it into perspective, a stable 5000 cars per week works out at about 260.000 cars a year, i.e about 2.5 times their total 2017 output for a single model even exceeds Porsche's 246.000 total production numbers for 2017.

    Also, the "fluffbot" you're obviously referring to was just for one single part, a dampening mat between the battery and the body, that was then discovered to be unnecessary and dropped completely so the human replacements were also useless. Even your comparison to the Model T falls flat on it's face when you consider how much simpler it was, how it took 4 years of Model T production to break the 100.000 cars per year mark and how working conditions at the factory were so terrible (IIRC) about a half of new workers quit in the first few months and the only reason Ford was able to keep attract enough replacement workers was by paying them well above industry average salaries.

    --
    "Why should I want to make anything up? Life's bad enough as it is without wanting to invent any more of it."
  20. Twice as many if they didn't have anything to work by raymorris · · Score: 1

    My numbers figure for this kind of work, half the day expense is salaries.

  21. My hobby is studying. No good at games, good at sw by raymorris · · Score: 1

    Some people are good at physical sports, like football.
    Some nerdy types spend their time getting really good at various table or computer games. Some people are really good artists.

    I spend my time studying software engineering and law. I can't sing, I can't dance, I can't kick a ball, I CAN design a database.

  22. PS - been studying for 30 years by raymorris · · Score: 1

    Btw, I'm also old. I've been studying information systems for 30 years.

  23. So, computer engineers are overpaid and bad? by Texmaize · · Score: 1

    From an outsiders perspective, you are implying that somehow each engineer deserves $166,000 a year salary for effectively doing very little. Maybe it would simply be more efficient to spend about 10 million in university research grants and try to figure out how to get more productivity out of the engineers, or at least assess who actually deserves that kind of salary. By your own admission, clearly most of them do not.

    From a societal perspective, I really question the value that you are assigning to these computer engineers to the world. I am really skeptical that more good is done by your "paper work people" than say, hiring 3 teachers, 4 social workers, 5 park rangers, or provide a full scholarships for a solid engineering education at say, the university of Illinois, for two kids. Or, if you want to stay in technology, I suspect that two mechanical engineers improving breaking systems or improving the car impact safety is probably more valuable than chasing a doodad that most people really are not asking for.

    --
    "Liberalism is a very noble idea, currently controlled by some very bad people. Be sure you do not get the two confused.
  24. Large companies are inefficient, but why make more by raymorris · · Score: 1

    > you are implying that somehow each engineer deserves $166,000 a year salary for effectively doing very little.

    That would neither be their salary, not did I say anything at all about deserving it. If someone costs the company $160K, their salary will be about $100K. Neither health insurance nor office space nor payroll taxes are free. Neither are the computers and other tools they use, nor the networks which connect them all, nor ...

    > or provide a full scholarships for a solid engineering education at say, the university of Illinois, for two kids.

    So youe thinking is having engineers working isn't that valuable, we should instead use the money to make more engineers? Who themselves should remain unemployed so we can use the money to train even more useless engineers, I suppose.

    Based on your astute reasoning, I'm going to make a bold inference that you're a Bernie Sanders supporter.

  25. Re:Tesla R&D "how to run an assembly line". 19 by raymorris · · Score: 1

    > only reason Ford was able to keep attract enough replacement workers was by paying them well above industry average salaries

    On Payscale.com I see that Tesla pays above industry average. :)

  26. Re:Tesla R&D "how to run an assembly line". 19 by The+Cynical+Critic · · Score: 1

    It's not like you can actually get away with paying people living in California the same wages you can pay in rust belt states and the south... In those places you don't even need to have pay raises keep pace with inflation.

    --
    "Why should I want to make anything up? Life's bad enough as it is without wanting to invent any more of it."