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Alphabet and Fiat Chrysler Team Up for Self-Driving Cars

Alphabet Inc. GOOGL continues to progress with its self-driving cars initiative. Recently the company entered into a partnership with Fiat Chrysler Automobiles N.V. FCAU. Per the deal announced last week, Google will incorporate its self-driving technology into 100 Chrysler Pacifica minivans to be used as test vehicles.

Chief executive of the Google Self-Driving Car Project John Krafcik said, “The opportunity to work closely with [Fiat Chrysler] engineers will accelerate our efforts to develop a fully self-driving car that will make our roads safer and bring everyday destinations within reach for those who cannot drive.”

Fiat Chrysler's CEO, Sergio Marchionnesaid, "We are approaching this in a completely open-ended fashion." "They found it easy to work with us and to explore and learn. Whether this is enough for them to feel comfortable to take the next step is unclear to me," she added.

For a considerably long time, Fiat Chrysler has been quiet over self driving technology while its competitors like General Motors Company GM and Ford Motor Co. F have publicly discussed their success stories.

However, with a host of developments in the self-driving cars space in recent times, it appears that Fiat Chrysler has finally decided to break its silence.

Separately, Google and Ford Motor have partnered to lead a coalition of companies that will push for federal approval of autonomous cars in the near future. Uber, Lyft and Volvo Cars are other members of this coalition. The Google-Ford coalition indicated a closer partnership for development of autonomous cars. But  Fiat Chrysler is the first announcement. But note that the Google-Fiat agreement is non-exclusive meaning that both parties are free to form similar relationships with other companies.

The partnership appears to be a win-win situation for both. Google for the first time gets an automotive partner to accelerate its efforts to build self driving cars. Fiat Chrysler on the other hand sees the partnership as an opportunity to leapfrog its competitors in the race for self driving cars.

At present, Google has a Zacks Rank #3 (Hold).

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FORD MOTOR CO (F): Free Stock Analysis Report
 
FIAT CHRYSLER (FCAU): Free Stock Analysis Report
 
GENERAL MOTORS (GM): Free Stock Analysis Report
 
ALPHABET INC-A (GOOGL): Free Stock Analysis Report
 
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