Please ensure Javascript is enabled for purposes of website accessibility

Alphabet Announces Self-Driving Car Partnership With Fiat-Chrysler

By Evan Niu, CFA - May 3, 2016 at 3:50PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The search giant finds a manufacturing partner.

2017 Chrysler Pacifica Hybrid. Image source: Google.

What happened?
Following rumors that have been circulating over the past few days, Alphabet's (GOOG 5.20%) (GOOGL 5.11%) Google has announced that it will partner with Fiat-Chrysler (FCAU) for its self-driving car project. This is the search giant's first major manufacturing collaboration with an automaker, and FCA will design and build 100 new 2017 Chrysler Pacifica Hybrid vehicles to add to Google's self-driving fleet.

The minivans represent larger vehicles than Google has used in the past for its self-driving car project, which will allow the company to test different features specific to larger vehicles with greater passenger capacity.

Does it matter?
Vehicle autonomy is one of the most important trends currently unfolding in the auto industry, even as overall adoption will take many years due to technological and regulatory uncertainties in the years ahead. Google had reportedly also discussed a possible partnership with Ford (F 3.89%) in December.

But both tech companies from Silicon Valley and auto companies from Detroit are proactively tackling autonomous driving head-on, and this partnership shows how collaborations can accelerate the rate of development. Google will bring its software prowess to the table, while leaving manufacturing to an experienced automaker.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Alphabet Inc. Stock Quote
Alphabet Inc.
GOOGL
$2,359.50 (5.11%) $114.66
Alphabet Inc. Stock Quote
Alphabet Inc.
GOOG
$2,370.76 (5.20%) $117.07
Ford Motor Company Stock Quote
Ford Motor Company
F
$12.01 (3.89%) $0.45
Fiat Chrysler Automobiles N.V. Stock Quote
Fiat Chrysler Automobiles N.V.
FCAU

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
336%
 
S&P 500 Returns
115%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 06/25/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.