Google, Fiat Chrysler minivans to partner in self-driving

Google Alphabet unit Fiat Chrysler Automobiles NV and have agreed to work together to build a fleet of 100 self-driving minivans on the latest collaboration to date between Silicon Valley and traditional car maker, the companies said.

The agreement marks the first time Google has worked directly with an automaker "to integrate its self-driving system, including its sensors and software in a passenger vehicle," the companies said in a statement Tuesday.

Google engineers Chrysler and Fiat will work together to adapt to autonomous driving technology of Google in the Pacific minivan. Some engineers from both companies will work together in a facility in southeast Michigan, where Chrysler Fiat has its main engineering center in North America, the companies said.

Google said it is not sharing vehicle technology patented self-driving with Fiat Chrysler, however, and the vehicles will not be offered for sale to the public.

The agreement between Google and Fiat Chrysler comes as rival technology companies and dealers are accelerating efforts to master the complex hardware and systems needed to allow vehicles themselves Pilot artificial intelligence.

General Motors Co in March agreed to acquire San Francisco startup self-driving car cruising automation. German car manufacturers Daimler AG, BMW AG and Volkswagen AG last year bought digital mapping company to accelerate its development HERE autonomous driving. Some of the features already available on the market in automobile mass, vans and trucks take steps in the direction of replacing a human driver, such as automatic emergency braking, adaptive cruise control and automatic lane maintenance.

Some analysts said a self-driving truck would make sense to test the technology in a fleet of public transport vehicles deployed in a controlled environment like a campus of Google or Chrysler or Fiat city center environment.

"Minivans fit transport fleets easily," said Karl Brauer, an analyst at Kelley Blue Book. "They can be wheels-in-box and can move more human beings at all."

Engineers Google self-driving cars had previously bought Lexus SUVs manufactured by Toyota Motor Corp and sensors and other equipment adapted cars on their own.

Tuesday offer has benefits for both companies. Fiat Chrysler has a lot of net debt of 6.6 billion euros ($ 7.6 billion). Chief Executive Sergio Marchionne, has been trying unsuccessfully for more than a year to convince reluctant rivals, including GM, to consider a merger of spreading the rising costs of security technology and advanced emission.

Fiat Chrysler shares rose more than 2 percent in after market trading after the Google deal was announced.

Google has said it wants to build self-driving vehicles for itself and has explored alliances with car companies, but none has been finalized. Work more closely with Fiat Chrysler could help Google to improve their systems as a step toward offering regular production cars.

The agreement does not preclude either FCA or Google to cooperate with others, the companies said in a statement.

"The opportunity to work closely with engineers FCA our efforts will accelerate to develop a fully self-driving that will make our roads safer and lead to destinations every day to reach car those they can not handle, "John Krafcik, CEO of Google Self driving car Project, said in a statement.

The collaboration with Google provides an opportunity for Fiat Chrysler "partner with one of the most important technology companies in the world to accelerate the pace of innovation in the automotive industry," Marchionne said in a separate statement.

Fiat Chrysler vehicles will more than double the fleet testing Google, which currently includes about 70 Lexus SUV and small car prototypes designed by Google. Google is testing self-driving vehicles in four US cities.

Executives from other automakers, including GM, Ford Motor and Daimler, have voiced misgivings about the alphabet or alliances with other technology companies that could relegate the role of hardware vendors.

John Elkann, chairman of Fiat, Chrysler in April dismissed the idea that automakers must shoulder alone the burden of heavy investment in automated driving or carpooling. By 2030, Elkann, fully self-driving cars said probably only represent 15 percent of global sales.

"Boring old automobile manufacturers have to find a way to make this profitable and protect themselves from falling into the trap of ignoring the business ... while chasing profits in other parts of the value chain," Elkann said.