(Reuters) - Israeli driving assistant software maker Mobileye (NYSE:MBLY) NV said on Tuesday it was developing a self-driving system with Delphi Automotive Plc that will be ready for production by 2019.
Mobileye had cut its ties with Tesla Motors Inc (NASDAQ:TSLA) last month after the electric carmaker's autopilot system faced scrutiny from regulators following a fatal accident in early May.
Tesla's autopilot system uses EyeQ chips from Mobileye to help with image analysis for steering and staying in lanes.
Mobileye and Delphi said their technology would cater to automakers that may not necessarily want to develop their own self-driving systems.
Automakers and technology firms are striking new alliances to commercialize self-driving cars after being caught off guard by Silicon Valley companies such as Alphabet (NASDAQ:GOOGL) Inc, Tesla Motors Inc and Apple Inc (NASDAQ:AAPL), which have invested millions of dollars in the technology.
Last week, Swedish automaker Volvo AB agreed to a $300 million alliance with ride-hailing service Uber to develop self-driving cars.
Ford Motor (NYSE:F) Co also said in the same week that it plans to offer a fully automated driverless vehicle for commercial ride-sharing in 2021.
Delphi and Mobileye said they will demonstrate their autonomous driving system in urban and highway driving at the Consumer Electronics Show in Las Vegas in 2017.
Mobileye's U.S.-listed shares were up 4.7 percent at $48.75 in premarket trading, while Delphi's shares rose 3.9 percent to $67.62.