Ford and Magna, in collaboration with a number of other companies, have announced a new programme to foster innovative transportation-related start-ups in Detroit. The partners have committed USD2 million for the programme, along with mentors and other resources to support participating start-ups.
As part of the programme, 10 start-up companies will be selected from across the United States to move to Detroit and take part in a three-month evaluation. Each of the 10 companies will receive USD120,000 in funding, intensive training and mentoring in business development, and help with customer acquisition and effective executive recruiting. The programme is set to run over a three-year period, with a total of 30 participating start-up companies.
The scheme is a different way for both suppliers and OEMS to look at new technologies that they might otherwise have missed. As global tier ones grow larger, with balance sheets comparative to automakers, a number are increasingly look at making acquisitions in a similar in style to those seen in Silicon Valley. California has seen an explosion in the number of small start-ups that have developed a unique product, sometimes with only a single use and a small team of employees, that are quickly picked up by the hugely diversified major industry players looking for the latest new tech. It would not be surprising to see a successful start-up from this scheme acquired by either Ford or Magna at some point in the future.
The scheme will also be part of a larger strategy as suppliers fight in an increasingly fierce battle to maintain a competitive R&D edge, not only over other suppliers but also their OEM customers, who have ceded a great deal of ground on the technology front to suppliers over the last few years.
The initiative will focus on creating a hub for transportation and mobility innovations in Detroit, and supporting companies working on innovative ideas to better facilitate the transportation of people, goods, and services, by solving the challenges involved in daily commutes such as traffic and parking. The incubator’s goal is to bring to market new technologies and approaches that incorporate mobile devices, wireless connectivity and cloud computing to make driving a safer and more enjoyable experience for people. The scheme is focused on the Detroit area, but the parameters mentioned above suggest that any successful could be applied across North America and potentially on a global basis
The programme is expected to give participating companies exposure to new ideas much more quickly than having to wait for full development, as well as the opportunity to get involved and respond quickly to the most promising developments. Moreover, the programme is a comparatively inexpensive way to help foster technology development across the industry and provide access to unique solutions that might not be generated out of the more traditional companies.
