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Uber and Volvo agreed on 24,000 self-driving cars

Uber plans to buy 24,000 self-driving cars from Volvo in a non-binding framework deal to fill autonomous driving divisions. A statement on Monday said Volvo will be presenting an XC90 SUV equipped with autonomous technology for Uber from 2019 to 2021.

Volvo XC90 has just launched in the starting price of about US$50,000. The self-driving system is being developed by Uber's Advanced Technologies Group and has been testing the prototype of Volvo cars for over a year. Cars in theory will be available through apps to serve passengers without a driver.

Tinuku Uber and Volvo agreed on 24,000 self-driving cars

"Our goal is to invest in vehicles that can be produced on a large scale, it's only a commercial business when you can remove drivers," Uber's automotive alliance chief Jeff Miller said.

No financial details are disclosed in the agreement. Miller said a small number of cars will be bought using equity and others will be purchased using debt financing. Volvo with Uber last year built an $ 300 million alliance for steering and braking features.

"We have the support to develop this car, it's also a big commercial deal," said Volvo CEO Cars Hakan Samuelsson.

Zhejiang Geely Holding Group acquired Volvo from Ford in 2010. The company plans to make an SUV at the Torslanda plant in western Sweden and Samuelsson says it will be sold at the same profit margin selling through dealers.

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