Recent developments show carmakers reluctant to provide data to IT partners such as Apple or Google despite new systems which allow vehicle infotainment systems to link to smartphones.
Auto companies hope that in the future, such technology will be able to monetize greatly, but in this possible future billion-dollar-industry, auto companies hope to protect their potentially profitable information from major IT companies.
Smartphone owners already represent a major source of revenue for Apple and Goole as numerous products and services are already being sold and bought.
Thus far, certain auto companies have clearly stated that they will not be providing IT partners with data regarding their vehicles’ functional systems. A variety of data regarding throttle, brakes or steering, as well as range (the measure of how far a car is able to travel before running out of gas) will not be provided to Apple and Google as a means of protecting the carmakers’ ability of creating value from the potentially new digital services arising in connection to vehicle data.
Such data, automakers explain, is very important in planning routes and travel services. General Motors, for instance, has refused to provide this data to its IT partners as it has recently embedded high-speed data connections in the cars it produces. As a result of these advances, they expect to generate over $350 million in revenue in the next three years.
“The risk is, if you give up control and somebody else figures out that business model, then you lose the future revenue stream,” Friedmar Rumpel, AlixPartners’ VP explains.
There is a multitude of potential applications of such technology. Apart from monetizing from this information, carmakers and their IT partners could monitor the behavior of the driver and offer the data to insurance companies which could then alter their premiums accordingly.
While certain automakers have agreed to use Android Auto and CarPlay, others decided to develop their own brand-specific apps. Even so, there is an issue that must still be resolved: will consumers be comfortable with sharing their personal data with third party providers?
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