This week has seen Daimler form a strategic collaboration with Qualcomm Technologies on connected car technologies, with the two companies focusing on mobile technologies that will enhance in-car experiences and vehicle performance such as 3G/4G connectivity, and wireless charging technology for in-vehicle use. In addition, the two partners are assessing the application of Qualcomm Technology’s automotive solutions.
In addition to this, Daimler has revealed its partnership with Chinese internet search company Baidu to allow users to access content from their smartphones via their dashboards. Daimler says the co-operation will involve content such as music and Internet services. As part of the agreement, Daimler will use Baidu software in its Mercedes-Benz vehicles sold in China, although details about the launch of such vehicles are as yet unknown.
Meanwhile, GM's Shanghai OnStar telematics joint-venture (JV) has showcased its in-vehicle 4G LTE internet connectivity feature, which will turn a vehicle into a Wi-Fi hotspot. The automaker says it will start offering in-vehicle 4G LTE internet connectivity later this year. Shanghai OnStar has partnered with China's leading telecoms player, China Mobile, to power its telematics services. GM plans to make the app available to buyers of Cadillac vehicles later this year.
Though OEMs maybe presenting connected-car solutions as infotainment platforms to consumers, potential applications for these services are much more far reaching. OEMs and suppliers are starting to look at the potential of a purely automotive cloud for connected services in vehicles, one that is separate from the current consumer cloud where services include document and photo storage and sharing. A connected-car cloud service could provide data on engine running, telematics, or fleet management vehicle diagnostics. Not safety critical services, but ones that have the potential to affect other areas of the driving experience, such as combining driving data to provide greater efficiency of city traffic.
However, the partnerships with wireless communications services and software and social media developers suggests that there will need to be a great deal of inter-industry collaboration before the real value of these services is realised. In addition to these, OEMs and suppliers are building new electrical/electronic system able to handle the input and output of data that isn’t possible with currently existing architectures. Suppliers have said previously that they expect these types of architectures to be ready from around 2019.
Currently though, the growing use of smartphones and escalating demand for in-vehicle internet connectivity is being used as a means of highlighting product and technology differentiation. The big risk for automakers is from technology companies such as Google and Apple, which have shown an interest in expanding their businesses into automotive. Although autonomous vehicle technology and in-car internet connectivity are two distinct technology areas at the moment, these areas may well start to converge in the medium- to long-term.
