The Merging Worlds of Technology and Cars
The line between the technology and automotive industries is blurring. The rise of technology is turning your car into a computer. But these developments are expensive: Carmakers’ R&D budgets jumped 61 percent, to $137 billion from 2010 to 2014.such as Uber and Lyft means that transportation is being tied ever more closely to your cell phone, while autonomous driving
Fiat Chrysler Chief Executive Officer Sergio Marchionne thinks it makes no sense for carmakers to spend billions of dollars developing competing, yet largely identical systems. To share some of the risk—and the cost—the incumbent automotive giants and their would-be disruptors are teaming up in an ever-growing, ever more complex series of alliances.
So Fiat Chrysler, for instance, has paired up with Google to develop 100 self-driving minivans, and is in discussions with about a similar venture. Google has, in turn, invested in , as have Toyota, Microsoft and Tata, owner of Jaguar Land Rover. Bill Ford, chairman of the eponymous carmaker, has meanwhile invested in , as has General Motors, and has partnered with China’s , itself the subject of a $1 billion investment from Apple.