Continental AG, the German automotive parts supplier, is entering into a partnership with IBM to develop systems to be utilized for driverless vehicles. IBM is the world's largest technology services company.

This was confirmed by Continental AG CEO Elmar Degenhart during the Frankfurt car show held Tuesday. He said that IBM has the 'requisite expertise' to manage large volumes of data required to establish links between cars. Degenhart did not disclose financial details.

According to a report by German newspaper Frankfurter Allgemeine Zeitung last month, Continental was close to forging alliances with Google and IBM in order to develop autonomous driving systems for vehicles. 

Continental already has an agreement with Cisco Systems, the US network equipment maker. The agreement was for development of systems for automated and driverless cars and data transfer between vehicles. 

A spokesperson for Continental declined to make a comment while IBM Germany spokesperson was not immediately available for comment.