Fiat-Chrysler scored a minor win in the pursuit for collaboration, as CEO Sergio Marchionne continues to seek out partners, and possible mergers, for his plethora of brands. However, before FCA inked a deal with Google to develop autonomous vehicle technologies, General Motors was in Google’s sights.
According to Jalopnik, GM politely rejected the deal. Why? For the same reason BMW and Daimler passed on a deal to help Apple with a rumored vehicle program: big data collection. In the agreements, it was disputed between GM and Google on who would own the data collection in the future. Things like where a driver shopping, what he or she eats, what sites they browse on tablets are all a part of big data.
And its a treasure trove for marketers. You can see why it can be worth big money.
BMW and Daimler reportedly weren’t comfortable offering up engineering and manufacturing capabilities without a piece of the datum pie, and the same is now applicable to GM.
FCA will likely give in to Google’s terms on data collection, but it may not be a bad thing. Unless an automaker plans on building a solution on its own, is the data really that powerful to a manufacturer? We won’t know that answer, since every other automaker has declined to explore.
Comments
I am surprised by this move on the part of GM.
However, I am not shocked that Google is unwilling to share data.
I wouldn’t be surprised to see in the news in the next month that Hyundai or another South Korean brand will likely ink a deal with Google. As the Chaebol system works in South Korea, Samsung and LG already work with Google/Android and a vehicle program will likely follow. The South Koreans and Google like cutting out Apple and Google only needs a manufacturing plant to build their cars. It is a small piece of Google’s bigger picture, and Google doesn’t have to do anything right now.
Truthfully, this is the best news for Tesla, as it gives them another year to go down the road before the Electric version of the CT6 is brought to market and unfortunately, without Google’s brand goodwill, Cadillac will remain behind the technology and trust curve that BMW and MB will bring to market, GM needs Google more than Google needs GM.
Google is not the end all be all here.
Keep in mind Google got into the pad buisness and phone buisness but still trails other products that are made by Samsung and Apple.
I would not discount GM on what technology they have and will apply
FCA is more looking for a partner for survival and cash than they are for anything else. Lets fact is they have been rejected by nearly everyone in the auto industry accept for other cash strapped companies.
Many of the things Google has will be or has been duplicated and you do not have to change much in programming to make it your own. That is why so many systems are similar today in many ways. Just look at Apples OS and Android. While different very similar.
I would not be disappointed or worried yet here as there is much more involved here than you realize with the entire auto industry. .