Google Launches Car With No Brakes, No Steering

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By Douglas A. McIntyre Published
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Google Inc.’s (NASDAQ: GOOG) driverless car took another step toward becoming a real consumer product with real sales. It will launch cars onto U.S. streets this year. These will have neither brakes nor steering wheel. As such, they will need no driver at all.

The Google driverless car project once again begs the question of whether the search company can ever be more than a search company. More than 90% of its sales continue to come from search advertising. Its forays into maps, e-mail, smartphones and even its widely distributed Android operation system have apparently done almost nothing to contribute directly to revenue, which reached $15.4 billion in the most recently reported quarter, up 19%. The same report showed Google has money to burn on new projects — $58 billion in cash and marketable securities.

Chris Urmson, Director, Self-Driving Car Project, wrote in a blog post:

We’re planning to build about a hundred prototype vehicles, and later this summer, our safety drivers will start testing early versions of these vehicles that have manual controls. If all goes well, we’d like to run a small pilot program here in California in the next couple of years. We’re going to learn a lot from this experience, and if the technology develops as we hope, we’ll work with partners to bring this technology into the world safely.

The car will have two seats, a start and stop button, a screen for viewing maps, and “that’s about it,” Urmson added. Its top speed will be capped at 25 mph.

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The car industry has begun to fill up with vehicles that allow drivers to give up one portion or another of their traditional responsibilities. Many recently built models have software that keeps drivers from departing lanes, detects collisions and offers parking cameras and no-driver parking. Mainstream software companies, led by Microsoft Corp. (NASDAQ: MSFT), have released software for the cars of a future with voice commands and systems that anticipate heavy traffic.

The other race for high-tech cars is in ones that have electric engines. The market leader for this initiative has been Tesla Motors Inc. (NASDAQ: TSLA), However, most major car companies are chasing the start-up with electric-driven engines of their own.

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The future of the car industry may involve driverless, electric-powered cars. However, the test of Google and other companies that want to capitalize on these advances is whether anyone will buy these cars.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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