Technology companies transformed televisions and smartphones, hence increasing their revenue. Today, big tech wants to work with automakers to carry out the same strategy for your car. With the huge rollout of autonomous vehicles continues to be the future, the 2 industries have converged on the concept of automobiles offering services and features shipped over the air, that’s over the exact same wireless data networks used by smart-phones.
Those providers-streaming video, automobile performance upgrades, dashboard commerce-might answer to a pressing need for car manufacturers. They have to find out how they can milk their hardware for revenue long after automobiles roll off dealers’ a lot. Tech companies see automobiles and the time people invest in them as a new frontier for growth.
Both automobile and tech companies used the big CES technology show here this particular week to show off the determination to come up with the vision of automobiles as connected machines devices a reality. Cloud computing giants Amazon and Microsoft were the cutting edge, chasing after the chance to control torrents of data moving to and from connected automobiles.
It is huge, General Motors Co-President Mark Reuss said in December of the opportunities to produce revenue after a car is sold by offering streaming services and over-the-air enhancements facilitated by GM’s new high capacity on-board electric system.
The pivot comes at a moment when global automakers are searching fresh new revenue sources as sales gradually and as growing expenses to comply with tougher emissions requirements threaten profit margins. Shares of legacy automakers like Ford Motor and GM badly lagged broader promote indexes in 2019. The difference is Tesla Inc, whose promote cap Wednesday for the first time exceeded Ford and GM’s combined promote values.
Tesla pioneered the product for charging for over-the-air enhancements, asking customers to pay $6,000 to switch on the complete self-driving option.
Some other automakers are eager to try their hand at turning automobiles into upgradeable, revenue-generating gadgets. Chinese car manufacturer Byton’s new M Byte sedan provides a 48-inch display as a dashboard and a steering-wheel display along with a digital tablet for passengers. When parked, the automobile can easily be an office, allowing video conference calls, or a roadside cinema.
Suppliers and tech companies want to hasten the transformation of cars into subscription bundle-ready machines by assisting car manufacturers to sort out the tangle of computer chips that will make most present vehicles difficult or even not possible to update over the air.
The present crazy quilt of automobile processors “is not cost-efficient, and it is difficult to have vehicles designed and launched to ensure that everything works all the time,” stated Glen De Vos, chief technology officer of automobile supplier Aptiv Plc. Aptiv’s solution: A latest Smart Vehicle Architecture which consolidates the majority of computerized features.
BMW showed for its CES display an idea of its future interior with reclining a windshield and lounge chairs with augmented reality made in to annotate the road ahead. BMW executive Klaus Froehlich informed Reuters the carmaker is looking for approval from the National Highway Traffic Safety Administration to obtain U.S. approval for the seating, but couldn’t point out when they will appear in the production.
The data has to be managed and sorted. Here comes the cloud computing platform Amazon Web Services into the picture.
A new software platform for connected vehicles will be developed as AWS announced a partnership with BlackBerry at CES.
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