Super Smart Cars
Over the past decade, cars have evolved. They have become more fuel-efficient, fast, strong, and some have even run-on hybrid energy. More recently, the past few years have seen the emergence of fully electric cars taking the mainstream by storm, with Tesla, NIO, and others shaking up the industry like never before.
But where does this leave all the other carmakers, some of the oldest names around like Ford are well respected in the industry, but are they lagging in technology? If you answered no, then you are correct. Older car companies have maintained a competitive advantage by adapting and evolving their products, and most recently Ford has made some big moves with Google. In the past 24 hours, it was revealed that Ford and Google are joining together on a partnership in which Ford replaces their infotainment systems with Google’s Android-powered system. On top of this Ford has named Google Cloud as its preferred cloud provider.
This partnership will fully materialize in the next two years because starting in 2023 all-new Ford and Lincoln cars will have user interfaces running Android apps. As of now, Ford hosts Android apps on their vehicles’ screens via their smartphone, but this partnership means integrating the tech into the car itself. Big tech and car partnerships aren’t new though, in fact, GM has partnered with Microsoft to serve as their preferred cloud provider for GM’s self-driving vehicle business. Apple has taken a different approach, opting to create their own Apple car.
All in all, it appears as though the car and high-tech industries may be seeing a lot of one another in the coming years. How much do you think these partnerships will affect the long-term growth of these stocks? And does integrating too much technology into a car pose a safety concern?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.