The Florida-based automotive retailer, the largest in the U.S., announced Thursday, Nov. 2, that it signed a multi-year agreement with Alphabet Inc.'s (GOOGL) - Get Report Waymo to offer support and service across Waymo's fleet of autonomous vehicles.
"AutoNation will offer strategic capabilities to maximize the life of Waymo's vehicles across the United States," AutoNation said in a statement. The deal includes long-term vehicle maintenance and mechanical and cosmetic repairs for Waymo's fleet of self-driving Fiat Chrysler Automobiles (FCAU) - Get Report developed Chrysler Pacifica models. AutoNation said the deal will expand as Waymo adds more brands and models to its autonomous fleet.
AutoNation's new tie-in with Waymo comes as industry peers including O'Reilly Automotive Inc. (ORLY) - Get Report and Advance Auto Parts Inc. (AAP) - Get Report have struggled since the start of the year, with shares down 25% and 52%, respectively.
Also on Thursday, AutoNation reported better-than-expected third quarter earnings, noting its operations were not as negatively affected by recent hurricanes as initially anticipated.
AutoNation stock jumped 4.6% premarket Thursday to $49.80. Alphabet shares were lower 0.28% to $1,039.65.
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