European carmakers lag behind on startup investments

Car manufacturers are facing some of the biggest changes their sector has seen, with the shift to electric vehicles, the development of self-driving cars and a potential threat from electric air taxis that may one day replace some of today's car journeys across congested cities. Partnerships with startups are a good way for carmakers to make sure they can get expertise in these emerging areas, and Sifted was interested in looking at how the different car brands compare in their willingness to invest in startups in strategic areas. What emerges is a picture of European carmakers at the middle to bottom of the pack in terms of the number of startups they have invested in. The one exception is Mercedes-Benz, which has a portfolio of 42 startup investments, second only to Hyundai. Mercedez-Benz's investments are across the board, from a holding in delivery robot company Starship to flying taxi company Volocopter, which looks like it may be one of the first to get passenger services up and running, starting with demo flights at the Paris Olympics in 2024. One area where there is no notable startup investment from Daimler is hydrogen-fuelled vehicles.