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Mercedes and Nvidia: a partnership that could change the automotive industry

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Miguel A. Rodriguez
Miguel A. Rodriguez
14 September 2020
Mercedes is looking to compete against the industry’s front runners.

Partnerships seem to be this week’s leitmotif, as a new agreement emerged yesterday. Daimler’s Mercedes-Benz announced its collaboration with microchips and software creator Nvidia

According to their statements, the two of them will develop a computing and artificial intelligence system made to improve automated driving. The new feature will consist of automated driving on a regular route (address to address). Nvidia is also pitching the idea of a level 3 automation system. This type of automation takes control over the car’s functions in certain conditions and areas, such as vehicles moving in the same direction and without passersby. Still, drivers have to be in the car.

Moreover, Nvidia’s system can detect if the driver pays attention to the road by tracking the head and eye movements, and can report drowsiness by monitoring the blink frequency. By preference, the system can alert the driver by audio, visual, or haptic deterrents.   

The technology will be a standard feature in all vehicles starting 2024. 

This collaboration comes after last week Mercedes and BMW suspended the $1 billion deal by which they would have developed an autonomous driving system. According to both, the time wasn't right for cooperation. Still, taking into consideration the data provided by Auto News, the technology couldn't have been used by Mercedes as soon as it is possible now, thanks to Nvidia.

From a specialist point of view, this is a smart move for both companies. Nvidia enters a market in a partnership with one of the world's premium automobile brands. At the same time, Mercedes-Benz will see its efforts paying off by starting to compete with other top companies such as Tesla when it comes to autonomous driving. 

Although this is good news, Daimler's stock price is currently trading lower by more than 3%, while Nvidia closed lower by 0.81%. 

The automotive industry has been through a lot during the pandemic! Read more about it on CAPEX.com!

Sources: forbes.com, theverge.com, marketwatch.com

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.