A partnership between Fiat Chrysler Automobiles and Uber is reportedly in the works, the latest signal that the Italian/American automaker is eager to stay at the forefront of the technology revolution in the auto industry.
Sources tell Bloomberg News that Fiat and the ride-sharing giant hope to announce a partnership by the end of the year.
Traditional automakers have eyed the rise in ride-hailing services with alarm given its potential to reduce demand for new cars, especially among urban millennials. The partnerships with Uber and the like are seen as way for the automakers to stay ahead of the curve — and possibly capitalize — on the changes impacting the industry.
Fiat was the first automaker to partner with Google in its efforts to develop fully autonomous, self-driving car. The goal of the partnership, announced last month, is to produce a fleet of 100 self-driving Chrysler minivans.
Fiat has also reportedly been in talks with Amazon, which has been investing in self-driving technology as a way to boost its deliver service. And Fiat has approached Silicon Valley’s foremost tech company to make an “Apple car.”
Fiat is hardly alone among automakers in seeking to launch ride-hailing and self-driving ventures, however, the company’s latest moves are notable considering it lacks the deep pockets of its much larger rivals, Toyota and GM.
Fiat is laden with more than $7.5 billion in debt. CEO Sergio Marchionne has sought to entice its larger rivals to consider a merger, so the company can have more capital to invest in research and development. (Fiat did have a robust first quarter of 2016, thanks in large part to U.S. sales of Jeep and Dodge truck models.)
Marchionne expressed enthusiasm for the emerging technologies of ride-sharing and self-driving in an interview with Automobile magazine last month:
“I think the next paradigm of this business is a paradigm that involves the cooperation for technology with the disruptors. Google is one. Apple is another, even Uber. It’s all about access to the complete information on what people do in the car. That’s when the consumer has time on hand and the business case blossoms. The key is to find a way in which we can coexist with the disruptors, and bring our set of skills to the table. Speed is essential here.”
Toyota has already announced plans to invest in Uber; and GM is investing $500 million in Lyft, Uber’s chief U.S. rival. Volkswagen, meanwhile, is investing $250 million in Gett, an Israel-based ride-sharing start-up that operates in Europe and New York City.
In the case of Toyota and GM, the deals with the ride-sharing companies come with leasing opportunities for Lyft and Uber drivers.
It’s not clear if any deal with Fiat will entail a similar arrangement.