General Motors Company (NYSE: GM) Is Leading the Self-Driving Revolution

General Motors Company (NYSE: GM) recently reported to the California State authorities that it disengaged the self-driving mechanisms on its test cars less than once per 1,000 miles during testing. The only other cars that beat GM’s record were self-driving cars developed by Waymo, a subsidiary of Alphabet Inc (NASDAQ: GOOGL), which posted slightly better results.

Article Summary

GM is leading the ongoing driverless car revolution.

The company is facing stiff competition from Google subsidiary Waymo.

Other automakers such as Ford are playing catch up.

Here’s the trading report on GM.

The company’s test results are quite impressive given that it mainly tests its self-driving cars on busy urban roads within cities such as San Francisco. Other companies are mainly testing their autonomous cars in less busy suburban roads, which do not have the multitude of driving challenges found on busy city streets.

GM is facing stiff competition from Waymo, which has partnered with Fiat Chrysler Automobiles NV (NYSE: FCAU) to develop its driverless car fleet. The partner companies recently announced that Waymo would be launching a fleet of driverless taxis in Phoenix by the end of this year. The announcement is a direct challenge to GM, which is also planning to launch a fleet of driverless cars next year for use as a ride-hailing service.

It is evident that GM and Waymo are quite close to launching fully autonomous cars on American roads, while other companies are playing catch up. Ford Motor Company (NYSE: F) recently announced that it had split up its mobility subsidiary known as Ford Smart Mobility into four divisions in order to fast-track the development of its driverless cars.

Ford’s smart mobility unit also revealed that it has acquired Autonomic, which is a company that focuses on maximizing the architecture, scale and leverage of transport systems. The company also acquired TrasLoc for almost similar purposes, which indicates that Ford wants to capitalize on technology changes affecting modern transport systems in order to accommodate new transport technologies such as driverless cars.

Earlier this month, GM announced that it expects 2018 profits to be in line with 2017 profits. Given that the automaker’s profits have been rising since 2013, this year’s profitability is not impressive.

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