According to Yahoo! Autos, Alphabet Inc.’s GOOGL Google is in talks with automaker Ford Motor Co. F to build autonomous cars.
Google and Ford will create a joint venture to build driverless vehicles. In this way, the deal won’t tie down either Ford or Google, both of which will therefore be able to strike similar deals with other parties.
If all goes well, the joint venture is expected to be announced at the Consumer Electronics Show next month.
About the Partnership
Last week, Google announced that it would spin-off its self-driving car section into a separate Alphabet corporation. The Ford deal could be part of this plan.
This partnership would give both the companies the needed push. While Google will gain expertise on mass production of automobiles, Ford will be able to leverage Google's real-world autonomous drive research.
Both the parties have been active on the autonomous car front for years. The But Google's efforts may be slightly more advanced given that it has been testing its vehicles on public streets in California and Texas. It was only recently that Ford received approval to test automatic cars publicly in California.
A Ford spokesperson told The Verge, "We have been and will continue working with many companies and discussing a variety of subjects related to our Ford Smart Mobility plan. We keep these discussions private for obvious competitive reasons, and we do not comment on speculation."
In a reply to an email, a Google spokesperson said that it doesn't "comment on rumor or speculation."
Both Alphabet and Ford have a Zacks Rank #3 (Hold).
Investors may consider stocks like Amzaon.com Inc. AMZN and Autobytel Inc ABTL, both carrying a Zacks Rank #2 (Buy).
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