Another day, another deal in the autonomous vehicle space. Zenuity, a joint-venture between Volkswagen AG (ADR) VLKAY and Autoliv Inc. ALV, will partner with NVIDIA Corporation NVDA to develop their own self-driving cars.
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Volvo AB (ADR) VOLVY reiterated its commitment to having Level 4 autonomous cars for sale by 2021. Level 4 autonomy means that the car would be able to operate completely without human intervention within a (large) geofenced area. At Level 5, a steering wheel would be optional.
Zenuity will use Nvidia’s PX platform, deepening Volvo’s existing relationship with Nvidia from its “Drive Me” pilot program announced in January 2016.
Volkswagen shares jumped 1.7 percent on the news, holding steady at around $31.10.
Autoliv, on the other hand, saw its stock dip about 1 percent to the low-$108 handle. Wells Fargo analyst David Lim expressed optimism for the company though, reiterating an Outperform rating.
“[Autoliv] should continue to win its fair share of active safety business going forward,” said Lim.
Recent Autonomous Car Developments
The announcement comes just a day after two other notable partnerships in the space were announced.
Avis Budget Group Inc. CAR announced a partnership with Alphabet Inc GOOG GOOGL’s self-driving car division, Waymo, in which it will store and service a fleet of 600 Waymo vehicles in the Phoenix area.
Shortly after, it was reported that Apple Inc. AAPL is renting six vehicles from Hertz Global Holdings, Inc HTZ to modify and test its own autonomous driving system.
Related Links: Top 5 Companies For Autonomous Vehicle Technology
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