Fiat Chrysler (NYSE:FCAU) and Waymo have agreed on an exclusive deal to develop self-driving commercial vehicles, an area some believe could be the first widespread utilization of autonomous technology.
Waymo, a unit of Alphabet (NASDAQ:GOOGL), will work with the Italian-American automaker to integrate its autonomous driving system, which it calls the "Waymo Driver," into the Ram ProMaster full-size van from Fiat Chrysler.
Reports say the tie-up consists of "light commercial vehicles," which are used for commercial delivery customers. Such vehicles primarily include delivery vans, large pickups and other big vehicles such as chassis cab trucks.
Automakers and tech companies for years have promised publicly available ride-hailing fleets but many such as Ford Motor have started focusing on commercial delivery for initial deployments of autonomous vehicles. The vehicles can be on set routes and don’t have to deal with passengers.
Separately, Fiat Chrysler has agreed to make Waymo its exclusive partner for future "Level 4" autonomous vehicles across the company’s global fleet. Such vehicles can operate by themselves without driver supervision in most conditions.
Waymo, in a blog post, said the companies have already "started to work together to imagine future FCA products for the movement of people and goods operated by the Waymo Driver."
The deal is anticipated to expand and continue with Fiat Chrysler’s expected merger with French automaker PSA Group into a company called Stellantis.
Fiat Chrysler and Waymo declined to release financial details of the deals.
FCAU shares forged ahead four cents to $10.53, while those for Alphabet fell $2.91 to $1,555.52
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