Continental and IBM "want to jointly develop mobile connected vehicle solutions for automakers around the world," the German group's chief executive Elmar Degenhart told reporters on the sidelines of the IAA auto show which opens here this week.
The technology was aimed ultimately at "making automated driving a reality," he said.
There has been speculation in recent weeks that Continental was mulling cooperation with Google, which has long been working on driverless cars.
But Degenhart refused to be drawn into commenting on the rumors.
"We're in touch with many companies," he said.
Copyright Agence France-Presse, 2013