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Alphabet ( GOOGL ) is in late-stage talks with Fiat Chrysler ( FCAU ) about a partnership regarding autonomous vehicles, according to multiple reports Thursday. At first glance, it seems like a crazy idea. Why would Alphabet’s Google want to team up with Fiat Chrysler. The automaker has invested very little in autonomous technology, largely sitting out the Detroit-Silicon Valley autonomous arms race involving the likes of Alphabet, Tesla Motors ( TSLA ), General Motors ( GM ), Toyota ( TM ), Ford ( F ) and Apple ( AAPL ). Indeed, Fiat Chrysler is unusually dependent on high-margin, gas guzzling Jeeps and pickups. And its major brands are usually at or near the bottom of quality surveys. But Fiat Chrysler has the virtue of its defects. Alphabet has sought alliances for years with major automakers on self-driving cars, lacking any experience in mass-producing vehicles or handling a far-flung dealer network. Fiat Chrysler CEO Sergio Marchionne has been looking for industry alliances or mergers to beef up the size of his company. Many experts believe that midsize companies such as Fiat Chrysler will have trouble investing enough — and spreading out those costs on sufficient sales — to keep up with global giants. Simply put, Fiat Chrysler needs Google more than General Motors. GM has made several related acquisitions and has invested in Lyft as part of an alliance with the ride-hailing service that involves autonomous efforts. As as a result, Alphabet’s self-driving arm might be able to drive a better bargain with Fiat Chrysler. Also, AutoExtremist.com , which first reported on the story, said an alliance might include an autonomous version of Chrysler’s Pacifica minivan. Apple, Tesla News Separately, Apple may have dropped some Apple Car hints Thursday in an SEC filing stating that “off-balance sheet obligations” were up 75% year over year to $12 billion, with some of the spike possible due to Apple’s “Project Titan car efforts. Tesla Motors reports first-quarter earnings next week, as does Mobileye ( MBLY ). Mobileye’s camera-based systems are being used by Tesla and several other major carmakers for semi- and fully autonomous car efforts. Scalper1 News
Scalper1 News