Chief executive Sergio Marchionne declined to disclose financial details of the partnership or a timetable for building minivans that will expand the Internet company's test fleet of autonomous vehicles.
"It's not sort of 'pie-in-the-sky,' the thing is real and it's coming," Marchionne said.
"People are talking about 20 years, I think we'll have it here in the next five years."
Alphabet this week announced an alliance with Fiat Chrysler Automobiles (FCA) in a major expansion of its fleet of self-driving vehicles.
The collaboration with FCA marks the first time that the California-based Internet giant has worked directly with an automaker to build self-driving vehicles.
"FCA will design the minivans, so it's easy for us to install our self-driving systems, including the computers that hold our self-driving software, and the sensors that enable our software to see what's on the road around the vehicle," the car team said in a post at the Google+ social network.
Alphabet said it was not licensing its autonomous car technology, and won't sell the self-driving minivans.
Marchionne noted that there are many unresolved issues, including how self-driving cars will be priced and what kinds of features will be built into them.
"But, if we don't explore it, we will never know," Marchionne told reporters during the official launch of the 2017 Chrysler Pacifica minivan at an 88-year-old plant in Ontario just across the Canadian border from Detroit.
While the partnership with Alphabet is limited in nature, Marchionne looked ahead to future developments.
"I think most of us in this industry would agree that we are going to transition to a different state than what we are in today," he said.
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