Delphi could be just what Intel needs
Intel’s self-driving car plans were bolstered when it announced it was buying Mobileye earlier this year. And it’s understandable why the company would shell out on a purchase like this: by 2030, the vehicle systems, data, and services market could be worth $70 billion. Mobileye is perfectly placed to gain the company a firm foothold in this area: its vision-based advanced driver assistance systems (ADAS) are fundamental pieces of the autonomous driving puzzle. They form the basis of things like cruise control, collision warnings, and lane departure warnings. But the big question then becomes, how can Intel and its partners integrate all the stuff they’ve got going on? The answer is Delphi Automotive.
Delphi’s share price has risen by 27% so far in 2017
SOURCE: Yahoo Finance
A month ago, Intel, BMW and Mobileye, bought Delphi onboard to help boost their self-driving car development. Delphi’s role is pretty clear: to integrate all of the software and hardware the three companies have gathered together, and make it available not just to BMW cars, but to other vehicles too.
We know that Delphi can do this. Not only is it an expert at automotive technological integration, but it’s already demonstrated what it can do. In early May, the company was able to add Intel’s self-driving tech into an Audi SUV which successfully navigated heavy Silicon Valley traffic. It did this by integrating 26 sensors – generating a huge amount of data – which was used in real time decision-making, letting the Audi drive like a person would: by reacting to what was happening around it.
All of these companies have worked together previously, so the likelihood of communications failures is minimized. And Delphi – as the world’s largest manufacturer of automotive parts – will be able to supply any hardware that the other companies may struggle to find. The result is a serious player in the autonomous driving market.
Dominion holds Delphi Automotive in its Global Trends Managed Fund.
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