Car companies are looking to create their own data business, so they’re planning to limit the data they share with tech giants Apple Inc., and Google.
Citing a single reason, key players in the automobile industry have toldReuters that they will limit the data that they share with tech partners Apple Inc., and Google Inc.
Car companies Ford, GM and Volkswagen AG’s Audi subsidiary, are reportedly hoping that one day, they will create a new revenue stream from data provided by phone-compatible vehicles. A data business, so to speak.
According to the report, car manufacturers hope that the data from car dashboards will generate billions of dollars — like how Amazon uses its internal algorithm to understand how consumers behave while buying stuff online.
In case you’re wondering, car companies are now collecting data from drivers by selling cars that can communicate with electronics, including smartphones and tablet computers. Consumers use these systems to play music, get access to mapping data, and others. Apple and Google provide the operating system compatibility via the Android and iOS. Consumers can access the apps and other content on the smartphone by using the car dashboard with built-in display.
Don Butler, an executive director at Ford Motors, has told Reuters that they’re limiting the data they share with the tech giants in California because they’re protecting their company’s “ability to create value.” The same article also revealed that General Motors Corp has told its investors that a whopping $350 million additional revenue (over the next three years) would come in from the smarter car dashboards.
At Fortune, Stacey Higginbotham wrote that this decision “surprises no one.” She then explained how car companies could fail.
Meanwhile on other parts of the world-wide web, followers of news linked to Apple and Google have suggested that the auto industry’s action against the two tech giants may be connected to reports about the still unconfirmed Apple automobile, in addition to the highly publicized Google driverless car technology program.
At Bloomberg, Craig Trudell has underlined the fact that Google and Apple are not yet into manufacturing of cars, but both are already paving the way to reach the lucrative four-wheel industry.
Apparently, Google has been making significant progress on self-driving car technology, so much so that the prototype car will start running beyond its test tracks.
Last month, Google’s prototype self-driving cars hit the public streets around Mountain View, California for the first time. Also in June, the search giant confirmed that its cars will soon invade the highways on the state of Virginia.