Ford, Baidu Lead $150 Million Investment in Velodyne

Ford Motor Co. and Chinese web-service provider Baidu Inc. are leading a $150 million investment in laser-sensor maker Velodyne Inc., the latest in a series of bets being placed by car makers and tech companies to advance autonomous-driving technology.

The investment will allow the California-based Velodyne to expand design and manufacturing of lower-cost LiDAR sensors, which are key to helping self-driving cars gather data from the surrounding environment.

"LiDAR continues to prove itself as the critical sensor for safe autonomous-vehicle operation," Velodyne CEO and founder David Hall said in a statement. The investment will help the company bring down the cost of the laser sensors and speed mass adoption of the technology in future vehicles, he said.

Velodyne has long been a leader in light detection and ranging sensors for autonomous test car. However, the expense of such sensors remains a barrier to entry. The first version, a 64-laser device, cost $75,000 and was large and obtrusive, sitting on the roof of a vehicle.

Like other major auto makers, Ford is working to speed the development of self-driving vehicles by investing in tech firms with enabling technology.

The move follows General Motors Co. $1 billion acquisition of autonomous-driving firm Cruise Automation earlier this year and other moves by car companies like Toyota Motor Corp. and Volkswagen AG to expand their software, mapping and artificial intelligence expertise.

Mike Ramsey contributed to this article.

Write to Christina Rogers at [e-mail]

(END) Dow Jones Newswires

August 16, 2016 09:25 ET (13:25 GMT)

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