Toyota & Ford Team Up To Defend Against Apple & Google

Loading...
Loading...

The battle over automobile connectivity may have created an unlikely pairing, as Bloomberg reported this week that auto competitors Toyota Motor Corp (ADR) TM and Ford Motor Company F are working together on dashboard app integration.

The move is likely an effort to maintain control of automobile dashboard design, as tech giants Apple Inc. AAPL and Google Inc GOOGGOOGL roll-out automobile-targeted technology.

Related Link: How Can You Create A Low Volatility Auto Portfolio?

Technology Integration

In a joint email statement, Toyota and Ford said they could be working together to continue to develop technology such as Ford’s SmartDeviceLink, which allows companies like Pandora Media Inc P to develop a single app that can be used in multiple automobile infotainment systems. Auto companies recognize that the younger generation of drivers expects a great deal of connectivity in their cars, and technological integrations will be a crucial part of the future of the auto industry.

Defending Territory

Auto companies are working hard to maintain control over the designs of dashboards, and Ford and Toyota are likely considering a collaboration to keep Apple and Google at bay. According to IHS, Apple’s CarPlay system and Google’s Android Auto could be found in 31 million and 37 million vehicles, respectively, by 2020.

“They’ve put a lot of blood, sweat and tears and a lot of R&D resources into developing their own systems,” explained IHS analyst Mark Boyadjis, “So how can you then say ‘OK, Google and Apple, come in and take over’?”

Apple & Google Getting A Foot In The Door

Apple lists Toyota and Ford as partners that will soon offer models with CarPlay, while Toyota is not listed as one of Google’s Android Auto partners.

Hyundai Motor Co HMC recently announced that it will be the first company to have Android Auto in U.S. models, starting with the 2015 Sonata sedan. General Motors Company GM will also offer both Android Auto and CarPlay in its 2016 Cruze models.

Loading...
Loading...
Market News and Data brought to you by Benzinga APIs
Posted In: Tech
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...