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Ford CEO Promises Self-Driving Cars On The Road By 2021

DETROIT (WWJ/AP) - Ford Motor Co. President and CEO Mark Fields promises autonomous cars on the road by 2021 — as part of a ride-hailing or ride-sharing service.

"The next decade will be defined by automation of the automobile, and we see autonomous vehicles as having as significant an impact on society as Ford's moving assembly line did 100 years ago," said Fields, Ford president and CEO, in a media release Friday. "We're dedicated to putting on the road an autonomous vehicle that can improve safety and solve social and environmental challenges for millions of people – not just those who can afford luxury vehicles."

To that end, Ford and the Chinese search engine company Baidu will each invest $75 million in Velodyne, a company that makes laser sensors that help guide self-driving cars.

Velodyne, based in The Morgan Hill, California, says it will use the $150 million investment to expand design and production and reduce the cost of its sensors. The laser sensors are called Lidar, which stands for light, detection and ranging. They can also be used in conventional vehicles as part of driver assist systems such as automatic emergency braking.

Velodyne says that lower costs will allow the sensors to be used in all vehicles to make roads safer.

Ford says Velodyne's technology is a key enabler of self-driving vehicles.

Building on more than a decade of autonomous vehicle research and development, the company says, Ford's first fully autonomous vehicle will be a Society of Automotive Engineers-rated level 4-capable vehicle without a steering wheel or gas and brake pedals. It is being specifically designed for commercial mobility services, such as ride sharing and ride hailing, and will be available in high volumes.

"Ford has been developing and testing autonomous vehicles for more than 10 years," said Raj Nair, Ford executive vice president, Global Product Development, and chief technical officer. "We have a strategic advantage because of our ability to combine the software and sensing technology with the sophisticated engineering necessary to manufacture high-quality vehicles. That is what it takes to make autonomous vehicles a reality for millions of people around the world."

Baidu is testing autonomous vehicles in China, where it hopes to cut road congestion.

Fields said on CNBC ahead of the announcement Tuesday that these moves will help Ford transition to a mobility company. He says the next decade will be defined by automation of vehicles. "Autonomous vehicles could have just as much significant impact on society as Ford's moving assembly line did 100 years ago," he said.

He also says the company plans to double its presense in Silicon Valley and more than double its Palo Alto campus.

TM and © Copyright 2016 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2016 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.

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