In their latest strategic partnership agreement, BMW and Daimler announced Thursday that they have joined forces to develop automated driving technology. The German automakers have agreed to a "long-term, strategic cooperation" to more quickly develop advanced driver assistance systems, automated driving on closed spaces and automated parking, they said in a statement. They hope "to make next-level technologies widely available" by 2025. "Combining the strength of our two companies will boost our innovative strength and speed up the spread of this technology," said Klaus Fröhlich, BMW's head of development. BMW and Daimler, the parent company of Mercedes-Benz and Smart, have launched multiple collaborative efforts as they try to fend off competition from tech companies like Uber and Waymo.

Within a few short years, a new wave of electric and self-driving vehicles will transform personal transportation as we know it. But for carmakers, these technologies will demand a staggering level of investment. They may not like the cost, but surviving through the radical new automotive era requires it. With the global economy cooling, German carmakers and suppliers seem set to embark on unprecedented collaboration, in the hope of sharing some of these development and production costs. BMW, Volkswagen and Daimler, the maker of Mercedes-Benz cars, are in talks on a formal collaboration to work on key technologies and industry standards for autonomous driving. Major parts suppliers, including Bosch, Continental and ZF, are also known to be taking part.