BMW & Daimler To Collaborate For Automated Driving Technology

BMW AG (NYSE:F) and Daimler AG (DE:DAIGn) (NYSE:F) intend to partner in order to develop automated driving technology, per Reuters. Around 1,200 developers will work together from both firms on developing new systems.

Notably, the alliance aims to develop driver-assistance systems technologies — automated driving on highways and parking. Both German auto giants will implement the automation technologies in their vehicles independently.

BMW and Daimler have finalized the agreement and expect to deploy the new technology in mass-market vehicles from 2024.

Headwinds from international trade conflict and shrinking margins due to emissions legislation have led both carmakers to pool their development resources.

Daimler, for the third time in 12 months, issued a profit warning, stating that it was setting aside hundreds of millions of euros to cover a regulatory crackdown on diesel emissions. In May, BMW issued a profit caution, stating that it made larger-than-expected investments. In fact, the company had issued profit warnings previously.

In February 2019, both companies entered a partnership for the development of self-driving technology. The aim of this partnership is to make autonomous driving technologies mainstream by the middle of the next decade.

Europe's biggest carmaker Volkswagen (DE:VOWG_p) AG (OTC:VWAGY) and Ford Motor Company (NYSE:F) are in the final stage discussions on an alliance to develop self-driving and electric cars.

In May, Renault (PA:RENA) and Italian-American group Fiat Chrysler Automobiles declared that they were in merger talks. However, discussions were later called off.

While Daimler currently has a Zacks Rank #4 (Sell), BMW has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple (NASDAQ:AAPL) sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.

Click here for the 6 trades >>

Ford Motor Company (F): Free Stock Analysis Report

Bayerische Motoren Werke AG (BAMXF): Free Stock Analysis Report

Daimler AG (DDAIF): Free Stock Analysis Report

Volkswagen AG (VWAGY): Free Stock Analysis Report

Original post

Zacks Investment Research