BMW plans self-driving software overhaul to fend off the likes of Apple, Google
German automaker BMW is planning a major corporate changes going forward, in an effort to build "the most intelligent car" it can, sensing impending competition from Apple, Google and others in Silicon Valley.
BMW's i3 commuter car.
Klaus Froehlich, a BMW board member who oversees the company's research and development, spoke with Reuters at the Geneva auto show this week. He said BMW is working internally on the next evolution of the automotive business, hoping to ensure it doesn't lose out to newcomers.
Froehlich even used an analogy from the smartphone industry, where many companies are simply part of the massive supply chain for profitable handset makers like Apple.
"Our task is to preserve our business model without surrendering it to an Internet player," Froehlich said. "Otherwise we will end up as the Foxconn for a company like Apple, delivering only the metal bodies for them."
This isn't the first time BMW has expressed caution about sharing information with companies like Apple, out of worry that it might effectively become just another supplier. However, technologies like self-driving systems might demand help from outside parties such as Apple and Google, which are more familiar with software.
BMW apparently plans to have half of its R&D team be computer programmers within the next five years. Currently, just 20 percent of its 30,000 R&D employees work in software.
Froehlich said BMW won't be able to hire all of those employees in-house, requiring the company to partner with others and outsource some of the work.
Apple is said to have considered using BMW's i3 as the basis for its "Project Titan" automotive efforts. Apple and BMW have even held talks about a potential partnership, though it's been said that the two parties were not close to an agreement.
Apple CEO Tim Cook and a team of senior managers allegedly visited BMW's electric car facility in Leipzig in 2014.
In particular, Apple was reported to have been impressed that BMW has "abandoned traditional approaches to car making" in developing the i3. Apple's top brass have apparently indicated they are interested in taking a similar, fresh approach to the automobile with their own initiative.
BMW's i3 commuter car.
Klaus Froehlich, a BMW board member who oversees the company's research and development, spoke with Reuters at the Geneva auto show this week. He said BMW is working internally on the next evolution of the automotive business, hoping to ensure it doesn't lose out to newcomers.
Froehlich even used an analogy from the smartphone industry, where many companies are simply part of the massive supply chain for profitable handset makers like Apple.
"Our task is to preserve our business model without surrendering it to an Internet player," Froehlich said. "Otherwise we will end up as the Foxconn for a company like Apple, delivering only the metal bodies for them."
This isn't the first time BMW has expressed caution about sharing information with companies like Apple, out of worry that it might effectively become just another supplier. However, technologies like self-driving systems might demand help from outside parties such as Apple and Google, which are more familiar with software.
BMW apparently plans to have half of its R&D team be computer programmers within the next five years. Currently, just 20 percent of its 30,000 R&D employees work in software.
Froehlich said BMW won't be able to hire all of those employees in-house, requiring the company to partner with others and outsource some of the work.
Apple is said to have considered using BMW's i3 as the basis for its "Project Titan" automotive efforts. Apple and BMW have even held talks about a potential partnership, though it's been said that the two parties were not close to an agreement.
Apple CEO Tim Cook and a team of senior managers allegedly visited BMW's electric car facility in Leipzig in 2014.
In particular, Apple was reported to have been impressed that BMW has "abandoned traditional approaches to car making" in developing the i3. Apple's top brass have apparently indicated they are interested in taking a similar, fresh approach to the automobile with their own initiative.
Comments
Insurance Companies and corporate risk management lawyers need to figure out the wording of the purchase agreement that will protect the BMWs, Googles and Apple's of the world ("you push AutoDrive, and your insurance company and the maker of this car hold you fully liable for what happens after that"), making only the uber-rich (okay, I typed it before I meant it to be a double entendre) willing to actually push the red button.
Here is an interesting video demo for valet parking an i3.
http://ineptechs.com/features/watch-this-bmw-valet-park-itself-from-a-smartwatch/
Once the data starts trickling in about saving lives, everyone will demad access to it! In 10 years no new car will be sold without the capability and auto insurance companies will go out of business soon after that, I hope. You will be covered as part of your home owners or renters policies for the very rare accidents or the car companies will take the hit.
This will change transportation almost as much as the automobile did at the turn of the last century. It will also have a serious impact on air travel as well... Just Imagine getting into your "car" at say 6pm eat a nice dinner and watch a movie or read a book and then go to sleep and wake up 1200 miles from where you started. No airport, so shuttle, no crowds, just a 120+mph trip through the night while you sleep. At some point inductive charging or some other tech will allow you to go without stopping.
it will come!
http://www.abc.net.au/news/2015-11-07/driverless-car-trial-on-southern-expressway/6921060
However, I think Froehlich is grossly exaggerating his comment about BMW just becoming another Foxconn. People don't buy BMWs for their infotainment - they buy them for how they drive. BMW, Mercedes and Audi all have a different philosophy on driving dynamics and each has carved out their chunk of the luxury/performance car market. BMW's are the best handling, Mercedes are the most luxurious/have the best ride quality and Audi is in the middle while also promoting their AWD abilities.
I've seen lots of data from BMW dealers about customers who left to get a Mercedes and came back to BMW because they missed how they drive. There are also just as many Mercedes drivers who were first time BMW owners who also went back to Mercedes.
BMW can continue to concentrate on the driving dynamics and performance of their vehicles and also cooperate with someone like Apple on the interior ergonomics and let Apple take over the complete dashboard. A BMW will STILL be a BMW and there will be plenty of their DNA in the final car. They don't have to worry about becoming Foxconn, who simply mass produce things based on other companies designs.