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GM Ditched Cruise Driverless: Software-Driven Cars Mean Big Bucks
General Motors (GM) has made a surprising decision to ditch its autonomous driving ambitions in favor of shifting focus towards software-driven cars. The reason behind this drastic change in strategy is the rapidly evolving automotive landscape, which favors cars that are controlled by software over self-driving vehicles.
According to a recent report from IBM, Alliance for Automotive Innovation, AWS, and Red Hat, the industry is moving away from fully autonomous driving capabilities. Instead, carmakers are now focusing on developing vehicle technology systems, including automation, as in-house capabilities.
The report highlights that two-thirds of car drivers will expect some level of autonomy by 2035. However, this autonomy will be limited to levels 2 and 3, which require driver attention and readiness to take control at all times. Only a quarter of the market is expected to have advanced autonomous features by then.
One key takeaway from the report is that carmakers are now focusing on charging customers for autonomy as a value-added service. This shift in strategy can be seen in Tesla’s approach, which offers supervised full-self driving for $99 per month and Ford’s BlueCruise service, which starts at $49.99 per month.
While it may seem counterintuitive that carmakers are moving away from fully autonomous vehicles, the report suggests that the focus is shifting towards developing vehicle technology systems with automation capabilities as a key differentiator. This could be achieved through partnerships or in-house development.
The complexity of separating hardware and software layers has been identified as a significant challenge for carmakers, with 47% citing it as their number-one challenge. This will likely result in a slower rollout of fully autonomous vehicles, as the industry grapples with these complexities.
In conclusion, GM’s decision to ditch Cruise driverless is not an isolated incident. Instead, it reflects a broader shift towards software-driven cars that are designed to be more efficient and cost-effective. The focus on vehicle technology systems and automation capabilities will likely lead to new revenue streams for carmakers, as they can charge customers for these features.
Sources:
* IBM, Alliance for Automotive Innovation, AWS, and Red Hat Report
Source: http://www.forbes.com
