Recently Reuters has reported that, After Volkswagen, Germany’s two biggest automobile companies, Daimler and BMW will work together to produce automated driving technology.

For this purpose, around 12, 00 developers from both companies will team up to pool their resources at a time of shrinking margins. The main objective of this partnership will focus on the technologies which will help the driving systems. Their developing technologies will focus on automated parking and programmed driving on highways.

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On Thursday, both companies have stated that they will implement this automated driving technology in their motor vehicles independently. BMW and Daimler have announced their plan to extend their partnership regarding this automated driving technology in February 2019.

Both companies have stated that they will implement this technology from 2024, in an effective way independently. Earlier this year, both companies have issued profit warnings. It is third in 12 months, that Daimler has issued a profit warning in June, saying it was putting aside a huge number of euros to cover an administrative crackdown on diesel emissions. In May, BMW has issued a profit warning, saying it had needed to make bigger projects than expected.

Because of tougher emission legislation, they are facing economic situations from International trade conflicts. Automobile companies are being headed to collaborate by the gigantic development costs of key innovations in which they face rivalry from internet giants like Alphabet’s Waymo.

Volkswagen and Ford are Europe’s biggest automobile companies, are in the final phase of talks on a key union to mutually create self-driving and electric vehicles. According to the Newspaper Handelsblatt, this deal was set to be affirmed on July 11. In May, Renault and Fiat Chrysler, Automobiles declared that they were in merger talks; however, discussions were later canceled.

BMW and Daimler said their cooperation was non-exclusive, with results being made available to other licensed original equipment manufacturers.