Delphi Automotive to Develop Self-Driving Vehicle Service

Delphi Automotive PLC DLPH has entered into a partnership with Transdev in order to set up a self-driving, on-demand transportation service this year. Both companies will be using automotive supplier's automated driving technology for the project.

Transdev is a French-based international private public transport operator with operations in 19 countries. It is also a subsidiary of France's state-owned bank Caisse des Dépôts.

The project will be Europe's foremost self-driving vehicle service for public roads. Both Delphi Automotive and Transdev are also looking for additional pilot sites for their joint project in North America. The French project is targeted toward short-distance commutes to and from train stations. It is expected to phase out in 2018 once the service gets tested and meets all regulatory requirements.

In order to reinvent itself as a high-tech player for next-generation vehicles, Delphi Automotive will be showcasing automated brakes and steering, using multiples sensors for the new-age vehicles.

Transdev will also collaborate on a similar program starting this year in the northern French town of Rouen in Normandy using a pair of Renaults SA's RNLSY ZOE compact electric vehicles.

Last month, Delphi Automotive decided to spin off its engine-components and Self-Driving Car units to focus more on the latter. This separation is expected to be completed by March 2018. Also, the latest collaboration with Transdav is done to claim the company's position in self-driving segment which it believes has higher growth potential and long-term value.

Delphi Automotive regularly undertakes alliances to enhance technological capability, increase operating scale, augment client base and expand geographically. Except the recent collaboration with Transdev, it has also partnered with Otonomo, a developer of data marketplace for automakers and Rosenberger, a high-frequency connectivity company to enhance capabilities in high-speed data transmission in recent times.

Price Performance

Delphi Automotive's shares have gained 12.7% in the last three months compared with the industry's 8.6% increase, thus outperforming the Zacks categorized Automotive - Original Equipment industry.

Delphi Automotive PLC Price and Consensus

Delphi Automotive PLC Price and Consensus | Delphi Automotive PLC Quote

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Expected long-term growth rates of Allison Transmission and Lear are 11% and 7.1%, respectively.

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