It was a good start to the week for Mobileye NV (NYSE:MBLY) as the company made a big announcement that pushed MBLY shares higher.
Tomorrow is Valentine’s Day and the Israeli tech company appears to have met its match as it inked a partnership with Volkswagen that will combine Mobileye’s Road Experience Management (REM) with the German automaker’s vehicles.
Volkswagen-brand vehicles will come equipped with the mapping service starting in 2018. Mobileye’s services compiles road conditions in real time thanks to reports from vehicles that have REM capabilities.
Eventually, the service will be used in self-driving vehicles because the mapping technology will help ensure a smooth ride and avoid accidents. These cars use front-facing cameras that come with lane markings and other road info.
The data is then sent to the cloud where it is collected and sent back to HD navigation maps in order to ensure an accurate set of conditions at all times. Under the deal signed by both companies, Volkswagen cars will use Mobileye’s feature for a number of other capabilities, including information on parking space and traffic.
The automotive industry is making great strides towards ensuring roads are safe due to functionalities such as this one, while also determining how to transition to autonomous driving without a hitch.
MBLY shares boomed 5% during regular trading hours Monday, while also surging 0.6% after the bell.
