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The Automotive Industry's Transition to Tech

Author: Ibrahim Abid

Published:

Within the past decade, there has been a rapid increase in innovation across the automotive industry. Many of these innovations are encouraging automotive companies to put millions of dollars into of electric vehicle technology, self-driving capabilities, and automotive software improvements. Many , such as the big three U.S. manufacturers, Ford, General Motors, and Stellantis, are competing to release the most cutting-edge battery technology.

Many automakers are initiating this innovative mindset through collaborations with other companies. For example, U.S. automaker Stellantis entered a joint venture partnership with Samsung to invest over in a lithium-ion battery production plant in Indiana. Not only is this partnership a step forward toward renewable energy, but it will also benefit the economy, creating over and increasing gigawatt hours from 23 to 33. This is a nearly increase, ultimately leading to a better vehicle range. Recently within the automotive industry, there have also been developments to further autonomous driving. Tesla, a massive player in the autonomous driving space, has been ; however, companies like General Motors have also been staying competitive with their highway drive assist systems. Last year, they announced that by ÎÚÑ»´«Ã½, their spending on EVs and autonomous vehicles will have increased by 30% to , resulting in higher projected profitability as they hope to sell over one million of these vehicles each year.

Development toward electrification and autonomous driving is not the only focus of these as they move into the tech industry. Evidence of this transition is clear in companies like Ford, which has invested over into cloud software as they integrate more technology into their vehicles. Ford has , a company helping them roll out FordPass which serves as a way to operate basic vehicle functions from your smartphone. This partnership will be helpful in efficiently in the roll-out of electric vehicles within the next decade, further advancing their position in the tech industry. This is expected to lead to in the future with endless possible uses. For example, you can use to find your vehicle in a large parking lot, start your vehicle on a cold winter morning, or even share your key with someone else via text message. Perhaps the greatest opportunity in this tool is that can partner with Ford to offer a seamless in-app experience for drivers trying to find parking in busy cities.

China has had the best stake in the world in terms of overall EV sales since , having sold almost as many EVs as the world combined with close to total passenger vehicles.  Several companies in China have a more than U.S. automotive companies, thus reducing their costs and enabling them to sell higher outputs of vehicles for a lower cost.  Many of these companies are and struggle in terms of advertisement and reputability compared to companies like Ford which is known around the world for its , but are seeing new potential as EVs are on the rise.

European companies are taking a different approach to their transition to tech.  Many of these companies already have well-established departments within , so they are instead partnering with companies to offer their services. For example, BMW and Apple have a using a system called , which is integrated into the Apple Wallet app allowing iPhone users to perform basic functions similar to a regular key. Additionally, BMW is aiming to make more for Europeans that are below the  mark.  

All automotive players within the industry need to stay competitive to continue appealing to consumers. Many consumers who are looking for new vehicles are looking for the latest  offered. Nowadays, mechanical components are less of a concern for consumers, as the technology implemented in vehicles grabs their attention. Over the next decade, technology will only further revolutionize the automotive industry, bringing them closer to the tech industry.