Is The Auto Industry Doomed Like IBM? Unlikely…

A recent report by TechCrunch pointed to the similarities between the computer market and that of automotive. In the 1980s and early 1990s Microsoft took off because of its windows operating system. IBM was the hardware king before Microsoft, but IBM gave their platform up to Microsoft and the rest is history. The question posed by the article is whether or not automotive has already done the same thing to Google and Apple.

In the case of automotive, the article pointed to Carplay and Android auto. Both systems are increasing in popularity and their number of automaker participants. Will these systems evolve from being an in-car platform to being a means by which numerous vehicle functions are controlled? If so, will consumers judge vehicles not as much by what’s on the outside as what software is flowing through the computer on the inside, much like PCs and Windows?

Certainly that angle taken in the article is a big jump, however, it illustrates the point that without a fight, automakers gave up their dashboards to tech companies. According to TechCrunch, “It’s 1985 all over again. And unless the auto industry takes control of its dashboard, it’s going to wind up like IBM.”

The article suggests that automakers need do more to excite their customers. They cited how Tesla Motors has updated vehicle software with powerful new vehicle capabilities or features for free. For example, certain vehicles have been upgraded to respond to voice commands, increase their top speed and soon, will be able use autopilot mode with autonomous highway passing. If all cars become heavily computerized, their operation system will be more and more distinct. Will that operating system come from GM and Toyota or Google and Apple? Will software companies be able to run vehicles using a system tethered to consumer cell phones?

Perhaps automakers should create vehicles that sync up with the lives of their drivers? This is, of course already underway and means more interchangeability between consumers, their cell phones and their cars. This could also mean more control over home security and vehicle door locks from the ease of a mobile device. Certainly dealers could be selling a vehicle in the next few years that allows a consumer to stay connected to work, home and their family. The question is whether they will engineer it or leave it up to software companies to beat them to it.

What do you think? Will the auto industry regain control of its vehicle infotainment systems and do more to innovate or do you think automakers stand a real risk of ending up like IBM with tech companies playing the takeover role similar to Microsoft?