Auto parts maker Delphi Automotive (NYSE: DLPH) said it agreed to buy self-driving car startup nuTonomy for $450 million.
The British auto parts supplier plans to buy the Cambridge, Mass.-based startup for $400 million followed by earnouts slated to total another $50 million, according to an Oct. 24 news release.
nuTonomy, which was founded in 2013, is developing software for the autonomous driving and mobility market. The company plans to remain in Cambridge and add more than 100 employees, including 70 engineers and scientists, to Delphi’s more than 100-member autonomous driving team, according to the release.
After closing the deal, Delphi expects to operate autonomous driving offices in Boston, Pittsburgh, Singapore, Santa Monica, Calif., and Silicon Valley. It plans to have 60 autonomous cars operating on three continents by the end of the year.
Delphi has been working on its own autonomous driving software created by Ottomatika, the Carnegie Mellon University spinoff company acquired by Delphi in 2015, Fortune reported.
In May, French carmaker Peugeot partnered with nuTonomy to test self-driving cars in Singapore. Under the partnership, nuTonomy’s software, sensors and computing platforms will be installed in Peugeot 3008 models as part of plans to develop the technology needed for large fleets of autonomous cars.
In June, Lyft announced a partnership with nuTonomy to bring autonomous vehicles into its network. The two companies are rolling out a limited pilot program in which Lyft users will be able to hail a self-driving car from the app, Fortune reported.
Delphi operates technical centers, manufacturing sites and customer support services in 46 countries. In March 2018, it’s scheduled to operate as two new, standalone companies.
Aptiv (NYSE: APTV) will include the electronics and safety and electrical and electronic architecture segments focused on new mobility solutions. Delphi Technologies (NYSE: DLPH), the powertrain segment, will use technologies and software to enable new vehicle propulsion systems, the release indicates.
Can someone explain like I’m five how Delphi fits in the supply chain and how it wants to evolve going forwards? Thanks.
Frank Tobe says
Quoting from Delphi’s annual report:
It’s a good read. You can download it here.
I hope this helps.