Auto company believe that the vehicle resources and info is going to sooner or later come up with huge amounts of income in e-business, but they are just simply needs to structure options for monetising the data. Apple and Google already make money from smartphone owners by providing a variety of products and services, from digital music to targeted advertising, and connecting phones to auto systems will nearly certainly extend their reach.
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In fact, there have been some automakers who have categorically maintained that they will not share braking, fuel economy, steering, and throttle information with Apple and Google. Executive director of Connected Vehicles at Ford Mr. Don Butler said: “We need to control access to that data”. “We need to protect our ability to create value” from new digital services built on vehicle data. This makes sense, given that we consider General Motors has guided for revenue streams of an extra $350 million over the next three years, thanks to the high-speed data connections it is now working on providing in its upcoming cars.
Friedmar Rumpel, an industry analyst from the AlixPartners, explained that auto makers are not interested in giving up control over data to their partners because the latter may figure out the business model and leave the ex- broke. Carmakers could use this data in various ways, such as for providing travel planning services, as well as repairing and service information to drivers. They also expect to work with insurance companies, providing information that would allow insurers to base their rates on a driver’s behavior behind the wheel. The technology giants have in-car systems known as Android Auto and CarPlay respectively, and some carmakers have expressed a desire to protect certain information. The question remains if drivers are willing to share their information with their ‘vehicle.’. In addition, state and federal regulators could impose limits on data-gathering and sharing.
Auto makers are very tight with the data they wish to share with tech partners that help them build in-car infotainment systems, a recent report shows.
As for Apple and Google, they defend that their systems are only meant to give an enhanced driving experience.
VW says it is treating the tech companies more as strategic partners and is being more open in terms of data access – a different stance from its sister brand Audi, which makes such decisions on its own and has restricted access to vehicle data.
The auto organizations perceive that Apple and Google can gather an abundance of data from the cell phones that clients bring into the auto, said Thilo Koslowski, automotive practice leader, Gartner.
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Strategies for monetizing the data are in the early stages, and carmakers are anxious to prevent the driver data being used by Google and Apple.
