Fiat Chrysler Automobiles N.V. (FCAU - Free Report) announced the strengthening its partnership with Waymo by delivering additional 62,000 Chrysler Pacifica Hybrid minivans. These vehicles will be used in Waymo’s self-driving fleet, which is scheduled to be unveiled in the United States by 2018 end. The delivery of the batch is expected to begin in late 2018.
The partnership between Fiat and Waymo was initially announced in May 2016, where engineers from both the companies collaborated to integrate Waymo's fully-autonomous system into the Chrysler Pacifica Hybrid minivan. In 2016, 100 Pacifica minivans were delivered to test the self-driving technology of Waymo. Further, in 2017, 500 additional vehicles were delivered.
In addition to this, the companies are also having discussions about using Waymo’s technology in other Fiat vehicles for retail customers. Per management, strategic partnerships like this will help Fiat to drive advanced technology.
Fiat Chrysler Automobiles N.V. Price and Consensus
However, Fiat is not the only automaker with which Waymo has collaborated for its self-driving fleet. Earlier in March, the company added around 20,000 electric vehicles from Jaguar Land Rover Automotive PLC for the same purpose.
Many major automakers are putting efforts to gain a leading position in the autonomous vehicle market, which is anticipated to drive the auto sector in future. One of those efforts is the collaboration with large companies to develop the required technology.
Year to date, Fiat’s stock has moved up 30.2%, outperforming 5.3% decline of the industry it belongs to.
Zacks Rank & Stocks to Consider
Fiat currently carries a Zacks Rank #3 (Hold). A few better-ranked stocks in the auto space are Magna International Inc. (MGA - Free Report) , Allison Transmission Holdings, Inc. (ALSN - Free Report) and Oshkosh Corporation (OSK - Free Report) . Presently, Magna carries a Zacks Rank #2 (Buy) while Allison Transmission and Oshkosh Corporation sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Magna has an expected long-term growth rate of 8.5%. Shares of the company have risen 38.1% over the past year.
Allison Transmission has an expected long-term growth rate of 10%. Shares of the company have risen 6.4% over the past year.
Oshkosh has an expected long-term growth rate of 18.3%. In a year’s time, shares of the company have gained 11.5%.
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