Nvidia-Volkswagen Relationship Deepens As Deluge Of Autonomous Car News Continues

Another day, another deal in the autonomous vehicle space. Zenuity, a joint-venture between Volkswagen AG (ADR) (OTC: VLKAY) and Autoliv Inc. (NYSE: ALV), will partner with NVIDIA Corporation (NASDAQ: NVDA) to develop their own self-driving cars.

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Volvo AB (ADR) (OTC: VOLVY) reiterated its commitment to having Level 4 autonomous cars for sale by 2021. Level 4 autonomy means that the car would be able to operate completely without human intervention within a (large) geofenced area. At Level 5, a steering wheel would be optional.

Zenuity will use Nvidia’s PX platform, deepening Volvo’s existing relationship with Nvidia from its “Drive Me” pilot program announced in January 2016.

Volkswagen shares jumped 1.7 percent on the news, holding steady at around $31.10.

Autoliv, on the other hand, saw its stock dip about 1 percent to the low-$108 handle. Wells Fargo analyst David Lim expressed optimism for the company though, reiterating an Outperform rating.

“[Autoliv] should continue to win its fair share of active safety business going forward,” said Lim.

Recent Autonomous Car Developments

The announcement comes just a day after two other notable partnerships in the space were announced.

Avis Budget Group Inc. (NASDAQ: CAR) announced a partnership with Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL)’s self-driving car division, Waymo, in which it will store and service a fleet of 600 Waymo vehicles in the Phoenix area.

Shortly after, it was reported that Apple Inc. (NASDAQ: AAPL) is renting six vehicles from Hertz Global Holdings, Inc (NYSE: HTZ) to modify and test its own autonomous driving system.

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