Volvo and Uber are joining forces to develop the next-generation of autonomous driving cars in a £228 million project.

The two companies have established an agreement whereby Volvo will develop new base vehicles that will incorporate Uber’s latest developments in autonomous driving technology.

The base vehicles will be manufactured by Volvo and then purchased by Uber, who will then fit its own self-developed autonomous driving systems.

Both Uber and Volvo will use the same base vehicle for the next stage of their own autonomous car strategies.

Håkan Samuelsson, president and chief executive of Volvo Cars, said: “We are very proud to be the partner of choice for Uber. This alliance places Volvo at the heart of the current technological revolution in the automotive industry.”

The new base vehicle will be developed on the same platform that is currently used on the Volvo XC90,  as well as the new S90 saloon and V90 estate.

Travis Kalanick, Uber’s chief executive, said: “More than one million people die in car accidents every year. These are tragedies that self-driving technology can help solve, but we can’t do this alone. That’s why our partnership with Volvo is so important. By combining the capabilities of Uber and Volvo we will get to the future faster, together.”

Ford this week announced plans to launch a fully autonomous car for ride-sharing services by 2020.

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Volvo will be exhibiting at Fleet Management Live, which takes place at the NEC in Birmingham on October 19 and 20. To register for your free ticket or to find out more, visit http://www.fleetmanagementlive.co.uk/