Aptiv to partner with Hertz on autonomous fleets; Q2 operating earnings rise

Automotive tech supplier Aptiv plc has entered a partnership with Hertz Corp. to cooperate on implementing fleets of autonomous vehicles, starting with a pilot program of an initial 75 vehicles in Las Vegas, to launch this fall.

Aptiv already launched a fleet of 30 self-driving BMWs in Las Vegas in May, equipped with Aptiv's autonomous driving platform. They were made available to the public via the Lyft ride-hailing app. Riders pay as they do for a typical Lyft ride.

On Tuesday, Aptiv CEO Kevin Clark said the Lyft program has provided more than 3,500 rides. CFO Joe Massaro said the program has generated data that's valuable to all shared mobility providers, not just autonomous fleets, such as where and when to deploy the vehicles. He said they run 20 hours per day on average.

Hertz would be Aptiv's fleet management partner in Las Vegas, Aptiv said in a conference call to announce second-quarter earnings. Hertz said in a separate announcement on Tuesday the two partners would use the pilot to develop standard operating procedures for autonomous fleets, with an eye toward similar programs in future markets.

In the conference call, Aptiv said demand for new infotainment systems, the "democratization" of active safety features and growth in technology that feeds autonomous driving drove higher content per vehicle and future orders in the second quarter.

Aptiv said second-quarter operating income was a record $421 million, an increase of 16 percent from a year ago. Clark said high-tech features are benefiting from "consumer preference and willingness to pay."

Shares in Aptiv rose 5.1 percent to $97.25 as of 2:30 p.m. ET.

Net income was $291 million, down 21 percent from a year ago. However, income from continuing operations was down just 2 percent. Pretax income from continuing operations was $378 million, an increase of 12 percent.

In December, Delphi spun off its traditional powertrain business into the separate publicly traded company Delphi Technologies. The company's high-tech autonomous driving business was renamed Aptiv. Clark, who was the CEO of Delphi Automotive, stayed on as CEO of Aptiv.

Aptiv's second-quarter revenue was $3.7 billion, up 17 percent from a year ago. Adjusted for currency exchange, commodity price movements, acquisitions and divestitures, the company said adjusted revenue was up 12 percent.