Toyota is setting up a new US$2.8 billion company in Tokyo to accelerate self-driving innovations.

The Toyota Research Institute-Advanced Development (TRI-AD) will see the car giant collaborate with two other companies, Aisin Seiki and the Denso Corporation, as part of a memorandum of understanding   to develop ‘fully-integrated, production-quality software for automated driving’.

“Building production-quality software is a critical success factor for Toyota’s automated driving program. This company’s mission is to accelerate software development in a more effective and disruptive way, by augmenting the Toyota Group’s capability through the hiring of world-class software engineers. We will recruit globally, and I am thrilled to lead this effort,” said Dr James Kuffner, current TRI Chief Technology Officer, and the new CEO of TRI-AD.