Alphabet Inc. In Talks With Renowned Automaker

In order to gain better results the tech giant has been in talks with one of the biggest automakers of the world

Sources privy to the matter has told that Alphabet Inc.’s self-driving car division and Fiat Chrysler Automobiles NV are at the last stages of the talk relating to the technology partnerships, according to the Wall Street Journal.

The source, who spoke on anonymity, told that the talks had been going on for several months. Google’s parent Alphabet Inc. has been searching for a strong collaboration with world’s one of the biggest automakers in order to close a deal which relates to the sale of the self-driving car technology, that for a long time has been under development, to the automaker.

The company’s efforts in the development of the self-driving car are often knotted to the Google’s autonomous vehicles which are being tested in several U.S. states including California, the company is aiming to be the auto supplier. The Internet search giant’s executives supervising the car development has said that they won’t build the car.

Meanwhile, the Chief Executive Officer of Fiat Chrysler, Sergio Marchionne has been searching industry partnership to get assistance in curbing development and production costs, or to merge. He said that in order to gain better return on the capital which has been invested, the industry players ought to build more scale. The CEO has signaled the company’s readiness to team up with the tech giants including Apple Inc. or Alphabet to offset their exorbitant production and development costs.

Last year, the second most valuable company of the earth hired John Krafcik to head and supervise its division of self-driving cars. The new head has been working tirelessly to go into partnerships with the automakers. He has made this a priority and point of focus for 2016.

For the past six years, the Mountain View, Calif. firm has been working tirelessly for the development of its autonomous vehicle technology. In real-world testing, the vehicle has also covered a distance over 1.5 million miles.

An industry blog, AutoExtremist.com, was the first source to publish about the rumored talks between Alphabet Inc. and Fiat Chrysler.

A partnership between the two companies would be beneficial for both parties as it is hard for the tech company to develop a car on its own without having appropriate expertise of building a car. Similarly, if the auto maker collaborates with a tech company, it could easily launch a vehicle based on the latest technological innovations. The synergy of the expertise of both the entities will help in creating a better product for the end consumers.

Alphabet Inc. has recently announced its quarterly earnings which has been disappointing in comparison with the expectations and projections of the analysts. At the market which closed on Thursday, Alphabet Inc. stock stood at a price of $705.06. The 52 week range of the stock is $532 to $810.