Look there’s nothing really wrong with the mindless television drivel like Big Brother, but the automotive industry is looking a little too similar to a tangled episode full of crisscrossing relationships. There has been a spate of automotive and “alliances” between major manufacturers and tech companies. Toyota and Mazda hooked up on a joint investment venture; Intel and Mobileye get cozy to work on autonomous driving; and now BMW, FCA, and Intel have jumped into bed together on a new self-driving car project.
BMW, FCA, and Intel are focused on building a fleet of self-driving taxis connected to your phone so you can order one on the fly– hmm, sounds familiar. So why are they so quick to try and get into each other’s pants, despite the often torturous financial and corporate hurdles that major joint ventures have to overcome? We would guess that it’s the potential $2 trillion dollar value consulting company McKinsey has assigned to the self-driving taxi market ten years down the road.
The other reason behind these desperate dalliances is that the cost to build out the new technology that’s needed for the next generation of cars is astronomical, so manufacturers are teaming up to try and defray the cost – and spread the risk.