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Business, 16.10.2020 14:01 jchidwic

MotorCar, a major automobile company headquartered in Detroit, is concerned about being left behind in the race to produce autonomous vehicles. There remains much uncertainty regarding the future of autonomous vehicle technology. Some industry experts say fully self-driving cars could be brought to market within a couple of years. Others believe the technology could take decades to develop. And still others are skeptical that the technology will ever be safe enough to bring to the automobile mass market. Further, in addition to safety and technological hurdles, there are regulatory obstacles as well. However, MotorCar has decided that it needs to innovate. The company is considering (1) increasing funding to its existing R&D department to expand to the development of AI (artificial intelligence) technology, needed for self-driving vehicles; (2) launching a fully owned subsidiary (a new company that it owns and controls) focused exclusively on AI; or (3) partnering with a major Silicon Valley tech company that has already made considerable progress on AI technology.

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What do you see as some of the potential benefits and risks of these different organizational approaches?

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