Apple and Google Hope to Slide into the Driver's Seat
John Blau · Research-Technology Management · 2015
Automakers may need to kick into high gear to stay ahead of Apple and Google in the race to control the brains of next-generation cars, which will be equipped with state-of-the art computing systems. The two tech giants--still seen by most manufacturers as vital technology partners--could soon become serious competitors in the car experts say, warning of major disruptions in the global auto After years of being treated by the tech industry as an interesting side business, automotive technology has become Silicon Valley's latest obsession. Google has made no secret of its plans for a self-driving car, after easing into the auto sector with a new dashboard system that lets a smartphone power a car's center screen. And word has leaked out that which has its own dashboard system, also has plans to develop an autonomous driving technology. Apple's and Google's plunge into cars comes as they and others envision vehicles becoming computers on wheels, packed with the latest computing technology, which will allow them to operate autonomously and provide a wide range of information and entertainment features. Although Google and Apple are mum on their ultimate reasons for expanding into cars, experts speculate that the Internet giants want to integrate their technology deep inside vehicles to gain access to drivers' and passengers' data. Unquestionably, both companies have the money and minds to do to the auto industry what they did to the mobile phone industry--namely, to shake up established manufacturers with innovative, software-driven technology. Not unsurprisingly, given their history of disruption, the two tech powerhouses grabbed much of the attention at the Geneva Motor Show in March, one of the industry's premier showcases, forcing CEOs of nearly all major carmakers to weigh in on their influence in the Fiat-Chrysler chief Sergio Marchionne said the Californian giants are exactly what (the car) industry needs, arguing their disruptive move into the industry would benefit everyone in the long term. His counterparts in Germany--the world's fourth largest auto market--say they, too, welcome Silicon Valley's help in building next-generation cars. This could surprise you, but welcome with open arms the interest of Google, and others in the auto industry, said Martin Winterkorn, chief executive of Volkswagen, the world's second-largest carmaker, adding that such a move would help garner interest in cars among a younger, tech-savvy generation. Winterkorn said that VW invested 11.5 [euro] billion, or nearly $13 billion, in its Future Tracks research and development program last year, with the aim of making itself the industry's innovation think tank. Much of that money went to VW's own battery power, digital networking, and autonomous vehicle research programs. The company, which has more than 46,000 researchers and developers and more than 10,000 IT engineers, offers a growing range of electrical and hybrid combustion-electrical cars and is also researching fuel-cell technology. Fellow German CEO Dieter Zetsche, at Daimler, is anxious--in both senses of the word--to learn more about Silicon Valley's car plans. And he should be. Apple recently recruited the head of his Silicon Valley R&D unit, Johann Jungwirth. I do not know the strategy of Apple, he told reporters in Geneva. It is not that easy for me to understand why they would be interested in entering the auto industry. But Zetsche also hinted that Daimler, like most other carmakers, could be interested in working with Apple. I don't see a battle, but do see a huge opportunity by these two worlds converging between the automotive industry and the tech world on the West Coast, if you want, he said. There are tremendous new opportunities: the connected car, the autonomous car, the very safe car. All of these opportunities are lying ahead of us, and we will exploit them in any form. …