Tencent venture poaches Google talent as Chinese tech firms pile into autos
By Jake Spring
BEIJING (Reuters) - An automaker launched last year by firms including tech giant Tencent Holdings Ltd has poached autonomous driving personnel from Google and Daimler AG, marking China's latest high-profile hires in the race to make self-driving cars.
Tech firms are encroaching on the auto sector as cars become increasingly reliant on digital technology, with Chinese e-commerce firm Alibaba Group Holding Ltd and internet search provider Baidu Inc funding automotive ventures.
A relaxation of restrictions on non-automakers producing electric cars in China has also encouraged more entrants. Video streamer cum automaker Le Holdings Co, or LeEco, unveiled an electric self-driving concept car ahead of the Beijing motor show, which ends on Wednesday.
Tencent, the Chinese maker of popular chat app WeChat, established Future Mobility to make electrified self-driving cars with Taiwanese electronics manufacturer Hon Hai Precision Industry Co Ltd - also known as Foxconn - and car dealer China Harmony New Energy Auto Holding Ltd.
"If you're measuring these firms (Future Mobility, LeEco and others) as automotive companies, the risks are very high and it's a very long shot for any to make it," said Bill Russo, managing director at consultancy Gao Feng Advisory Co. "Even Tesla has taken 10 years to earn respect."
Future Mobility has hired lead designer Wolfram Luchner from Alphabet Inc's self-driving car project, a person familiar with the matter told Reuters, declining to be identified ahead of an official announcement.
From Daimler, the venture has hired Mercedes-Benz North America autonomous driving research and development director Luca Delgrossi, the person said.
When contacted by Reuters, Future Mobility Chief Operating Officer Daniel Kirchert confirmed the appointments. Continued...