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Germany, France plan cross-border self-driving test zone
by Staff Writers
Frankfurt Am Main (AFP) Feb 8, 2017


Volvo Cars posts strong earnings on record sales
Stockholm (AFP) Feb 8, 2017 - Swedish carmaker Volvo Cars, owned by Chinese group Geely, said Wednesday it posted a healthy profit rise in 2016, boosted by record sales and stronger finances.

Net profit soared by 90 percent to 5.94 billion kronor (633 million euros, $628 million), while sales climbed by 10 percent to 164.04 billion kronor, Volvo said in a statement.

The brand sold more than 534,000 cars in 2016, six percent more than its 2015 record. "I foresee that 2017 will also be a record year in terms of sales," said chief executive Hakan Samuelsson.

Volvo has made a remarkable comeback since 2010, when the loss-making carmaker was taken over by Chinese group Geely.

In December, it succeeded in raising 5.0 billion kronor (529 million euros, $564 million) by selling preferential shares to three prudent Swedish investors: public pension funds AMF and AP1, and insurance group Folksam.

On Tuesday, Swedish media revealed the company plans to hire up to 800 people at its plant in Gothenburg, Sweden's second city. The company is also expected to begin manufacturing cars in the US in 2018, where it is building a factory near Charleston, South Carolina.

The carmaker is also leading the drive to develop self-driving cars. In January, it provided test cars to a number of families in Gothenburg, and it is expected to continue the test in London later this year.

European neighbours Germany and France plan to test self-driving vehicles on a stretch of road linking the two countries, the transport ministry in Berlin said Wednesday.

The route -- aimed at testing "automated and connected driving in real cross-border traffic" -- will stretch around 70 kilometres (43 miles), from Merzig in Germany's western Saarland state to Metz in eastern France.

"Manufacturers will be able to test the connectivity of their systems, for example when lanes or speed limits change at the border," German Transport Minister Alexander Dobrindt said in a statement following a meeting with French counterpart Alain Vidalies.

"We want to set worldwide standards for this key technology through cooperation between Europe's two biggest car-producing countries," he added.

The route will allow testing of 5G wireless communications between cars and infrastructure, automated manoeuvres such as overtaking and braking, and emergency warning and call systems, among others.

Germany, home to car giants such as Volkswagen, Daimler and BMW, already boasts a number of test zones for automated vehicles on motorways and in cities, but this is the first that will cross into another country.

The transport ministry has offered 100 million euros in funding for the projects.

The tests come as the nation's traditional carmakers are racing to catch up to Silicon Valley newcomers such as Tesla, Uber and Google parent company Alphabet in the new field, seen as the future of driving.

Automated trucks in particular are expected to shake up the road transport sector in the years to come.

In a glimpse of what lies ahead, manufacturers took part in an experiment last year that saw six convoys of "smart" trucks cross several European countries using "platooning" -- in which a leading truck sets the route and speed for wirelessly-connected, self-driving followers.

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