TOKYO (Reuters) – Toyota Motor Corp said a new venture would be investing more than $2.8 billion to develop automated-driving software – the latest salvo in an increasingly frenetic battle to be ahead in a sector hit by a slew of disruptive technologies.
FILE PHOTO: An onboard display monitor shows other vehicles as a staff member of Toyota Motor Corp drives its self-driving technology “Mobility Teammate Concept” prototype car hands-free on the Metropolitan Expressway during the Toyota Advanced Technologies media preview in Tokyo, Japan, October 8, 2015. REUTERS/Yuya Shino/File Photo
The Tokyo-based venture, which will bring together some 1,000 employees including new hires, will be 90 percent held by Toyota with group suppliers Denso Corp and Aisin Seiki Co each taking 5 percent.
“This company’s mission is to accelerate software development in a more effective and disruptive way, by augmenting the Toyota Group’s capability through the hiring of world-class software engineers,” James Kuffner, who will lead the venture, said in a statement.
FILE PHOTO: A Toyota Motor Corp. logo is seen on a car at the International Auto Show in Mexico City, Mexico November 23, 2017. REUTERS/Henry Romero/File Photo
The establishment of the new venture, Toyota Research Institute-Advanced Development, comes as firms such as Alphabet Inc’s Waymo and Tesla Inc give traditional automakers a run for their money in building self-driving and electric cars.
English is set to be the main business language of the new venture, the statement said.
Toyota is also investing $1 billion in artificial intelligence and other technologies through its U.S.-based Toyota Research Institute, and has struck up technology partnerships with Microsoft Corp and Uber Technologies.
Last month, Toyota Research Institute’s venture capital unit said it was co-leading an $11.5-million seed investment in May Mobility, an Ann Arbor-based startup that is developing self-driving shuttles for college campuses, central business districts and similar low-speed applications.
Reporting by Minami Funakoshi; Editing by Chang-Ran Kim and Edwina Gibbs