9 Reasons Why Fiat Chrysler-Google Partnership Makes Sense

Detroit Free Press

FCA CEO Sergio Marchionne says repeatedly automakers must consider partnerships with other automakers and tech giants like Apple and Google.

For those paying close attention over past year, reports that Fiat Chrysler Automobiles is in advanced discussions with Alphabet Inc.’s self-driving car division about a technology partnership is not a complete surprise.

Marchionne, who also has courted General Motors for a mega-merger, has also met with Apple, Google and Tesla over the past year.

FCA and Google declined to comment, but the Associated Press and the Wall Street Journal reported Thursday that the two companies are in advanced talks to form a technical partnership. The partnership would be the first to match an automaker with Google’s 7-year-old autonomous car project, which is now part of the so-called X lab at Alphabet, Google’s parent company.

There remains a good bit of skepticism that a deal will actually emerge. To make it work, FCA might need to take a back seat to Google on the technology and design, even as it takes on the manufacturing and sales duties.

Nevertheless, here are nine reasons why a deal makes sense:

We know Marchionne has courted Apple, Google and Tesla:

Marchionne met with both Apple CEO Tim Cook and Tesla CEO and founder Elon Musk during a three-day trip to Silicon Valley last year. During that trip, he rode in Google’s self-driving car, according to a Reuters report. He said at the time he was impressed with Musk and was open to exploring partnerships with Apple and Google.

Marchionne confirmed discussions in January:

“There are continuing conversations going on in Silicon Valley with all of the people you just mentioned,” Marchionne said when asked about Apple, Google and others in January at the North American International Auto Show in Detroit. “At least from an FCA standpoint, we should avoid making grandstanding statements about the fact that we are going to take Silicon Valley into Detroit and turn Detroit into Silicon Valley … We’re not going to do that.”

Google is also seeking partners:

John Krafcik, CEO of Google’s self-driving car project, said in January that the company wants to form new partnerships this year to accelerate adoption of its self-driving cars.

“It takes many parts and partners to make a self-driving car,” Krafcik said when he spoke at the Automotive News World Congress, an industry conference. “You can’t do it alone.”

Google is already working with many auto suppliers:

Google is already working with some of the biggest automotive suppliers and electronics suppliers in the world and many of them have a large presence in southeast Michigan. To build its prototype autonomous car, Google worked with Roush, Bosch, Continental, FRIMO, LG Electronics, Prefix, RCO, ZF Lenksysteme and many others.

Google’s presence in Michigan continues to grow:

Google has had a presence in Ann Arbor since 2006. Google plans to relocate later this year from its original office in downtown Ann Arbor to a new 140,000 square foot office space near the north campus of the University of Michigan.

Read more of the original article in Detroit Free Press.

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