Business Corpus: Ford Teams Up With The Google Of China To Test Self-Driving CarsFord is teaming up with Chinese internet giant Baidu for a two-year project that will test self-driving cars on Chinese roads. The post Ford Teams Up With The Google Of China To Test Self-Driving Cars appeared first on Investor's Business Daily.

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Ford (F) is teaming up with Chinese search giant Baidu (BIDU) to test self-driving cars as it tries to catch up in autonomous vehicles.

The iconic automaker will work with the Google of China on a two-year project. The Ford-Baidu autonomous driving alliance will test self-driving cars on Chinese roads. They will start in Beijing, and possibly other Chinese cities, by year-end.

Ford has been seen as a laggard in autonomous driving, with relatively low profitability and cash flow limiting its ability to invest in the space. That's in sharp contrast to key rivals, notably General Motors (GM). While Ford is teaming up with Chinese firm Baidu, GM has managed to attract outside investments to bolster its Cruise Automation unit. Japan's SoftBank and rival Honda Motor (HMC) recently made investments in the program.

Ford rose about 1% to 9.55 on the stock market today, continuing to rebound from a nine-year low following its Q3 earnings report last week. Baidu stock gained 3.65% following the internet giant's better-than-expected Q3 results late Tuesday. General Motors stock jumped 9.1% on GM earnings that were well above views. Honda stock rose 2.5%.

Ford-Baidu Autonomous Driving Test Aims For Level 4

The Ford-Baidu testing program for autonomous driving aims to achieve so-called level 4 technology for self-driving cars. This means autonomous driving but not in all conditions. The highest tier is level 5, which is for vehicles capable of navigating roads without any driver input.

"Working with a leading tech partner like Baidu allows us to leverage new opportunities in China to offer innovative solutions that improve safety, convenience and the overall mobility experience," Sherif Marakby, CEO of Ford's autonomous vehicles unit, said in a statement.

The move strengthens the ties between the two firms. Ford was one of the founding member of the Apollo Committee. This is an advisory group for Baidu's open platform for autonomous driving. Ford has already been fitting its self-driving cars with the Apollo system, the firms said in the statement.

In June, Ford and Baidu said they would develop connected services, artificial intelligence and digital marketing in China.

Baidu's intelligent-driving group general manager, Zhenyu Li, said the Baidu-Ford alliance will facilitate a big step forward for self-driving technology.

"This project will combine our leading-edge technological know-how and understanding of China together with Ford's vehicle expertise, marking a significant step forward toward Baidu's goal of developing autonomous driving vehicles that will greatly benefit future consumers," he said in a statement.

China is becoming an important testing ground for autonomous vehicles. Regulators OK'd German automaker Daimler (DDAIF) to test self-driving cars on Beijing roads in July, a first for a foreign automaker.

Ford Falling Behind On Self-Driving Cars

A blistering downgrade by Morgan Stanley Managing Director Adam Jonas earlier this month accused Ford of falling behind on self-driving cars. He demoted Ford stock to equal-weight from overweight. He also cut his price target on Ford stock to 10 from 14.

Jonas said a lack of transparency had leaked into several other areas, including Ford's key Auto 2.0 initiative. He called the strategy "opaque" and unfavorably compared it to the rival GM Cruise initiative, now valued at $11.5 billion.

"Our valuation of Ford's Argo AI business has remained $1 billion throughout the year," he said. "No changes and no clear catalysts for how such assets can be recognized by the market."

However Ford last week reported better-than-expected sales, with EPS in line.

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