Fiat Chrysler Automobiles (NYSE:FCAU) this week announced that it's partnering with Aurora, a self-driving vehicle technology company, to develop autonomous vehicles (AVs). FCA will integrate the Aurora Driver platform, which consists of "hardware, software, and data services" that allow vehicles to operate at Level 4 autonomy (meaning no human intervention is needed).While Aurora may not have the same name recognition as some other AV tech companies, investors should know that it's led by Chris Urmson, who helped lead Google's self-driving car project before the tech giant spun it off as Waymo.
The companies said in a press release that the tech will be used "for a variety of customized solutions for commercial vehicle customers at a time when changing lifestyles and online shopping patterns are creating logistical opportunities."
In other words, the Aurora and FCA collaboration pairs the automaker's car-building know-how with Aurora's AV tech and will allow FCA to eventually sell autonomous commercial vehicles to companies for package delivery services.
What this means for Fiat Chrysler's AV strategy
Of course, the partnership with Aurora isn't the first of its kind for FCA. The automaker said last year that it would supply up to 62,000 of its Chrysler Pacifica minivans to Waymo for the company's Waymo One self-driving ridesharing service.
But the new partnership with Aurora is different: It will help FCA sell Level 4 autonomous vehicles to third parties (potentially for delivery services), instead of just supplying vans to Waymo that don't have AV tech pre-installed.
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