Delphi Automotive Plc, an auto supplier, recently announced a new partnership with Blackberry Ltd for the development of a software operating system for its self-driving vehicles. The two companies announced this partnership less than a week ago, which is expected to have significant impact on both companies and on the auto industry. The partnership was announced at a time when Delphi Automotive Plc has created a turnkey self-driving system known as CSLP. The company followed the trend in the automotive industry where larger automakers are creating their own self-driving systems. This paper examines this partnership, its potential benefits to both companies, and its impact on the auto industry and on national/international commerce.
Summary of the Partnership
As previously indicated, the partnership between Delphi Automotive Plc and Blackberry was announced by both companies less than a week ago. As an auto supplier, Delphi Automotive has followed the trend in the auto industry where many large automakers are creating their own systems for self-driving. In this regard, the auto supplier has already created CSLP, which is its own turnkey self-driving system that will be rolled out to automakers and other transportation providers in 2019 (White, 2017). This partnership is geared towards the development of a software operating system for self-driving cars by Blackberry Ltd.
Through the partnership, Blackberry QNX...
The developed operating system by Blackberry QNX would assist in protecting against system malfunctions, malware, and cyber attacks. These issues have been identified as critical concerns for self-driving vehicles and should be guarded against.
Benefits for Both Companies
Since the partnership was launched or announced less than a week ago, its positive impacts on both companies are yet to be visible. Currently, the announcement of the partnership has had significant impacts on the performance of Blackberry’s shares in the market. After the announcement was made, Blackberry’s shares increased by 8.6% in New York, which was the biggest intraday increase for the company since June 1 (Naughton, 2017). However, there were very minimal changes on Delphi’s shares given that the deal is in its formative stages and its impacts would be visible in the future.
Apart from the increase in Blackberry’s shares, the partnership will be beneficial for both firms in the future, especially after Delphi rolls out it self-driving system in 2019. One of the potential benefits of this partnership for both firms is that it will help establish them as key technology suppliers in the auto industry…
