FRANKFURT, Oct 2 (Reuters) - BMW BMWG.DE rivals and ride-hailing companies are considering joining its consortium for developing self-driving cars as auto industry profits come under increasing pressure, board member Klaus Froehlich said on Tuesday.
Carmakers and ride-hailing companies have sought to build self-driving cars as a way to enter the business of smartphone-hailed robotaxis. However, they are entering a crowded field where the likes of Apple AAPL.O and Alphabet Inc GOOGL.O have been pouring billions of dollars into cars that can drive themselves.
"Unfortunately, everybody thought they would be the winner and would have an enormous ride-sharing business," BMW board member Klaus Froehlich told Reuters on the sidelines of the Paris Motor Show.
BMW, however, wanted to spread the cost of investment and started a consortium that now includes Mobileye (OTC:MBBYF), Magna MG.TO , Fiat Chrysler FCHA.MI and auto suppliers Delphi Automotive DLPH.N and Continental AG CONG.DE . technology is proving complex and the returns on investment are taking longer to materialise, causing investors to scrutinise whether go-it-alone strategies make sense.
"I have had another German carmaker saying, 'it sounds like we wasted a lot of money'. I also have had contact from tier one suppliers who say 'lets do a common platform'," Froehlich said.
"Some ride-hailing companies have also expressed interest in joining the consortium."
Froehlich would not be drawn on who might join the consortium beyond saying "there may be some news on this next year".