Goodyear, Gatik Collaborate to Make Autonomous Middle Mile Logistics Safe, Efficient

Tyre major The Goodyear Tire & Rubber Company (GT) recently announced that it has collaborated with Gatik, a truck company specializing in autonomous middle mile logistics, to expand the development of mobility solutions for the autonomous B2B short-haul logistics industry.

Don't Miss Our Christmas Offers:

Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter

Following the news, shares of the company declined 3% to close at $18.10 on Tuesday.

With this collaboration, Gatik’s fleet of trucks will use tires equipped with tire intelligence technology powered by Goodyear SightLine. This is likely to improve stopping distances in autonomous commercial vehicles and monitor tire pressure in real-time for enhanced safety and reduced wear. Further, the use of the tires is expected to reduce fuel and maintenance costs while increasing operational efficiencies for the trucks used by Gatik’s consumers.

The Senior Vice-President of Global Operations and Chief Technology Officer at The Goodyear Tire & Rubber Company, Chris Helsel, said, “By leveraging our advanced tire intelligence solutions, Goodyear can help improve vehicle performance and safety in autonomous transportation. Together, Goodyear and Gatik will combine our innovative technologies to help bring more efficiency in the increasingly important middle mile segment.” (See Goodyear stock chart on TipRanks)

Last month, Nomura analyst Anindya Das reiterated a Sell rating on the stock with a price target of $12, which implies downside potential of 33.7% from current levels.

Consensus among analysts is a Hold based on 4 Holds and 1 Sell. The average Goodyear price target of $17.80 implies downside potential of 1.7% from current levels.

Goodyear scores a 6 out of 10 from TipRanks’ Smart Score rating system, indicating that the stock is likely to perform in line with market expectations. Shares have gained 137.2% over the past year.