Citi Analysts Test Drive General Motors Company's Super Cruise Technology With Mobileye NV Chip

Itay Michaeli of Citigroup test drove General Motors Company's (NYSE: GM) "Super Cruise" technology which is now confirmed to utilize Mobileye NV's (NASDAQ: MBLY) technology. The technology consists of a Mobileye chip as part of a monocular camera and other sensors including radar, GPS and map data.

"General Motors' Super Cruise feature is capable of fully automatic steering, braking and lane-centering in certain high conditions," Michaeli wrote in a note to clients on Wednesday. "It's essentially a first generation hands-free highway driving application that can work in both open highway conditions and traffic jams, but without lane changes initially."

Michaeli adds that the technology will likely be well received and suitable for the U.S. market where highway driving is more prevalent than city driving.

During the recent ITS World Congress, General Motors formally announced that its Super Cruise technology will launch with Cadillac vehicles in 2017. By 2025, General Motors hopes systems like Super Cruise will be available in all domestic vehicles.

Shares of Mobileye are Buy rated with a $62 price target.