Mobileye Accelerates Self-Driving Car Technology With Delphi Deal

August 26, 2016

The road to self-driving cars got a little more crowded Tuesday, as Mobileye (MBLY) announced it will partner with General Motors (GM) supplier Delphi Automotive (DLPH) to jointly develop off-the-shelf autonomous driving technology for automakers.

The two companies announced they will co-develop “the market’s first turnkey Level 4/5 automated driving solution,” which carmakers could begin integrating into vehicles starting in 2019. Level 5 is totally self-driving, while Level 4 is close to complete autonomy.

All the major automakers and a number of the largest tech companies are working to develop self-driving cars, mostly through joint ventures. This month, General Motors said it was testing self-driving cars in Scottsdale, Ariz. Last week, Ford (F) announced plans to have a fully autonomous car in five years.

In the tech industry, Alphabet’s (GOOGL) Google is known for its pioneering moves in self-driving cars over the past six years. Alphabet’s efforts sped up with its May partnership announcement with Fiat Chrysler Automobiles (FCAU), its first with any car company. The pair agreed to jointly develop a fleet of 100 self-driving minivans.

Tesla Motors (TSLA) has been the most aggressive in pushing self-driving technology to the public, but the electric car maker is under government scrutiny following the recent fatal crash of a Tesla Model S in Florida, in which the driver was using the company’s Autopilot feature. Mobileye, a Tesla supplier of advanced driver-assistance systems (ADAS), last month disclosed that its partnership with Tesla was ending.

Despite safety questions, the self-driving car era is arriving fast, perhaps this decade. Automakers and tech companies are plowing billions of dollars into research and forging alliances in a rush for the inside lane on the automobile’s most revolutionary track since the Ford Model T a century ago.

Mobileye 6.7% to 49.66 in the stock market today, earlier touching a 10-month high above 51 and briefly topping a 50.28 buy point.

Delphi stock was up 4.3% to 67.86.

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Mobileye is a leader in the development and production in computer vision systems, mapping and machine learning, while Delphi, a General Motors spinoff, is a leader in automated driving software, sensors and systems integration.

Mobileye recently announced that it would team with BMW (BMWYY) and Intel (INTC) to develop a fully automated driving system, a partnership that one analyst called a “turning point” for autonomous vehicles. Intel will provide a broad set of technologies, including machine learning and artificial intelligence.

Mobileye CEO Amnon Shashua said the relationship with Delphi started in 2002, with the implementation of advanced active safety systems.

“Our partnership with Delphi will accelerate the time to market and enable customers to adopt Level 4/5 automation without the need for huge capital investments, thereby creating a formidable advantage for them,” he said in a statement.