Perezonomics
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Automakers Need to Get Out of the Software Business

5/18/2019

 
Another Perezonomics Prediction Coming True
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Phandroid.com had some interesting info on how Google is delving beyond Android Auto which is basically using a phone as the brains and integrating directly into Volvo’s new Polestar 2. 
​Android Automotive OS is an operating system designed to replace a manufacturer’s own proprietary infotainment system with Android, though it’s not exactly the same Android we know and love. This is an entirely new interface that encompasses HVAC (air conditioning and heating), car settings, music, radio, navigation and everything else you would normally find in a car’s infotainment. We got to see a demo at Google I/O 2019, and despite the numerous bugs and freezes, there’s quite a bit of potential. The main interface is made by Google but the manufacturer will integrate their own car settings into the interface, as well as add apps where necessary. —Dima Aryeh, Phandroid
 
Now this is where I’ve felt that automakers would go for quite a quite a while. I’ve been waiting for the automakers to begin to respect just how complex writing and nurturing an operating system is. Thus far, most believed it was no big deal but I think they are finally realizing just how massive an effort this will be. 
 
The major automakers don’t make their own tires, they go to the tire experts. Tire manufacturing is too complex and automakers don’t want to get bogged down in that world. Similarly, these guys are in the business of manufacturing and selling cars, not of hiring an army of programmers to write code. 
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​Google can see where this is going and has made some serious strides with getting their system into Volvo’s new EV the Polestar. I gotta think that Apple has some ambition to jump into this arena as well. Although, for Apple the situation could be more complex if they have any future plans to offer their own car. Would automakers balk at using an Apple operating system if they felt like they were helping to fund a competitor? Or would Apple feel like licensing their software diminishes their own car’s competitive advantage?

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    Robert Perez

    Manufacturing and distribution analysis since 1993.

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