Delphi (DLPH) Joins Self-Driving Alliance With BMW And Intel

U.K.-based car parts maker Delphi Automotive PLC (NYSE:DLPH) has collaborated with Bayerische Motoren Werke AG (BMW), Intel (NASDAQ:INTC) and Mobileye (NYSE:MBLY) in their self-driving partnership. Announced in Jul 2016, the alliance intends to bring a highly and fully automated driving system for serial production by 2021.

Delphi Automotive joins the partnership as a systems integrator and development partner. The company’s task will be to integrate technologies developed by other partners in the alliance and provide the required software and hardware components. The new platform is intended to be sold to other vehicle manufacturers, who can choose their own system integrators to customize the same as per their vehicle suitability.

The cost, complexity and accelerated pace of self-driving vehicles’ development continue to spark sweeping alliances between automobile manufacturers and suppliers. Similar alliances were formed last month among Daimler AG (OTC:DDAIF) and car parts' supplier Bosch. On May 14, Alphabet’s self-driving unit Waymo said it has joined forces with ride-hailing service Lyft to develop self-driving cars.

Delphi Automotive is one of the largest vehicle parts manufacturers in the world and one of the few companies that offer complete automated driving solutions. In Aug 2016, the company acquired Ottomatika, Inc. to develop advanced automated driving technology, and is partnering with Westport Fuel Systems Inc. (NASDAQ:WPRT) to manufacture high-pressure natural gas fuel injectors. The company has also been selected by the Singapore Land Transport Authority to provide a fleet of fully autonomous vehicles and develop a cloud-based mobility-on-demand software (AMoD) suite.

Price Performance

Delphi Automotive’s shares have gained 15.39% over the last three months while the industry witnessed a 4.61% increase, outperforming the Zacks categorized Automotive - Original Equipment industry.

Zacks Rank & Key Picks

Delphi Automotive currently carries a Zacks Rank #3 (Hold).

A better-ranked company in the auto space is Allison Transmission Holdings, Inc. (NYSE:ALSN) . The stocks sports a Zacks Rank #1 (Strong Buy) and has an expected long-term growth rate of 11%. You can see the complete list of today’s Zacks #1 Rank stocks here.

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