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Daimler & BMW to Collaborate for Self-driving Technology

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In a big development, Daimler AG and BMW AG (BAMXF - Free Report) are likely to partner for the development of self-driving technology, per Wall Street Journal. Heightened competition in the self-driving technology front brought these rival auto giants together. The aim of this partnership is to make autonomous driving technologies mainstream by the middle of the next decade.

So far, Daimler’s efforts on the self-driving front have been limited to internal developments. The company already plans to launch a fleet of driverless vehicles in San Jose, CA, in 2019. This collaboration with BMW is likely to expand its development in self-driving technology. Then again, BMW has been working on automated technology since 2006 by collaborating with various vehicle manufacturers and technology companies. This latest collaboration with Daimler is likely to provide tremendous momentum to BMW’s self-driving efforts.

Importantly, auto companies are investing huge amounts on this emerging but potentially revolutionary technology. Different types of partnerships and initiatives have already been worked out to stay ahead of others. Given these, this partnership is of huge importance instead of stand-alone efforts.

Zacks Rank & Stocks to Consider

While Daimler currently has a Zacks Rank #5 (Strong Sell), BMW has a Zacks Rank #4 (Sell).

A couple of better-ranked stocks in the broader auto sector are General Motors Company (GM - Free Report) and Ferrari N.V. (RACE - Free Report) . While Ferrari currently sports a Zacks Rank #1 (Strong Buy), General Motors carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

General Motors has an expected long-term growth rate of 8.5%. Shares of the company have gained 2.7% in the past month.

Ferrari has an expected long-term growth rate of 18.5%. Over the past month, shares of the company have gained 1.1%.

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