Driverless technology: BMW and Daimler combine for autonomous cars

"The combination of the key expertise of our two companies will strengthen our strength of innovation and accelerate the spread of this technology", BMW (BMWYY) board member Klaus Fröhlich said in a statement.

This is not the only way for owners of BMW and Mercedes-Benz Daimler (DDAIF) start working more closely together.

Michael Hafner, an executive working on autonomous driving at Mercedes-Benz, said the two projects were complementary.

"The field of activity is completely different, but the partner is the same and the motivations at least similar," he wrote in a blog post regarding Thursday's announcement.

Closer cooperation between German companies is the latest example of partnerships between well-established car manufacturers to share the costs of developing new technologies, including autonomous driving systems.

Hafner said the alliance was logical because automated driving "would radically transform our industry – and because in the long run we would not only be stronger, but also more efficient as partners.

The companies indicated that they would initially focus on driver assistance systems, automated highway driving and parking devices. They signed a memorandum of understanding.

Other world manufacturers have also joined forces.