Information Systems Integration – Messina

Auto Makers increasing partnerships as Future of Transportation Changes

As the future of transportation is rapidly approaching, auto makers are looking to alliances to secure their spot in the worl dof autonomous driving.  With autonomous vehicles, the the skillet needed to compete in this competitive environment is vastly different than the previous competitive skills that were key to be successful.  Taking the human out of the equation results in a very different product for transportation which requires a whole new strategy. Also, the self-driving venture is just too much for one company to do itself and without partnering many of these huge auto makers can not compete in the future. So as the future in the industry is moving away from actually building cars to focusing on the data, ride-hailing and connect car-services, the number of alliances is increasing.  From 2016 to 2017 there was an increase of 131 alliances to 271 partnerships involving self-driving cars.   The most recent partnership, between Honda and GM  which agreed to develop a fully automated car, with Honda committed to investing 2.75 billion in GM’s self-driving Cruise LLC over the next 12 years.  Also, Toyota has partnered with Uber and GM has partnered with Lyft to collaborate on self-driving technology. As the alliances are forming, it is also making way for newer competitors in the industry. Huge tech companies are increasing competition with auto makers to capture this huge opportunity. I think as time goes on and market share gets shifted, a lot of the iconic auto makers that had decades of success will no longer be able to compete in the changing industry.

2 Responses to Auto Makers increasing partnerships as Future of Transportation Changes

  • You picked a very interesting and relevant topic for where the future of technology and transportation are headed. In old time movies you see people in flying cars in the future and it looks so funny at the time. However, technology has already brought us autonomous vehicles, so how far are flying vehicles after all? Additionally, I have to think that autonomous vehicles will become a disruptive innovation when they become affordable enough for the average working person to own them. I believe this because you are providing a better, more safe alternative to something people already have and use on a daily basis. Once autonomous vehicles take-off it will become a very different transportation industry then it is today. Jobs in this area will look very different in the future. I’m interested to see where we will be in 10 and 20 years!

  • Autonomous/driverless transportation is approaching to be future of transportation at an alarming rate. Many cars already have numerous semi autonomous features that currently guide the driver for overall convenience and safety. It wont be long until vehicles are fully automated. Automating vehicle lineup is certainly very expensive and it will take huge capital in R&D within these companies. Partner alliance makes sense as its less risky on one organization and partners can gather their resources to get to one goal of fully autonomous vehicle. Facing a big disruptive technology is critical and the best way current companies can survive the future is through partnership. The rate of partnerships has increased significantly this shows that companies are now less concerned about direct competition and more scared of upcoming disruption.

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