Fiat Chrysler Google set to develop self-driving prototypes

Fiat Chrysler and Google plan to develop several dozen self-driving prototypes based on the car firm's new minivan sold in the US, according to sources familiar with the matter. It will be the first phase of a joint project to create autonomous vehicles.

Fiat Chrysler plans to equip the Pacifica people carrier with Google technology starting this year.

The companies would remain free to cooperate in driverless technology with other partners, according to sources. An agreement could be signed as early as today.

The accord would mark Google's first deal with a major automaker since the technology giant began developing self-driving cars on its own in 2014. For Fiat Chrysler, the deal would provide a shortcut to features that have taken on growing importance for the auto industry. Fiat Chrysler Chairman John Elkann said last month that the Italian-American carmaker should work with "new industry participants" like Google and Apple rather than compete with them.

Fiat Chrysler chief executive Sergio Marchionne, who mentioned a possible partnership with Google in December, has been directly involved in talks with the US company, people familiar with the matter said.

Test miles

Google, which has run more than 1.4 million miles of tests on its own driverless prototypes, has been in discussions with various auto manufacturers about working together. A deal with General Motors couldn't be concluded because of disagreements over ownership of technology and data.

Partnering with Google is in keeping with Marchionne’s approach to development. He contends that carmakers waste capital developing multiple versions of the same technology and that the industry should consolidate to become more profitable. He intends to put Fiat Chrysler in a better position for a merger by the time he steps down as the manufacturer’s CEO in 2018.

- (Bloomberg)