news 
Why GM Ditched Cruise Driverless: Software-Driven Cars Mean Big Bucks
General Motors (GM) recently decided to pull the plug on its autonomous driving project, Cruise. This sudden change in direction has left many wondering what led to this drastic shift. A recent report from IBM, Alliance for Automotive Innovation, AWS, and Red Hat sheds some light on the situation.
According to the findings, car manufacturers will rake in more than half of their revenue by 2035 through software-driven vehicles. The report suggests that adding autonomy features to existing cars is a far more lucrative option than investing heavily in developing fully autonomous vehicles like those tested by Waymo and other companies.
In-house capabilities are key
The report highlights the growing trend among car manufacturers to develop their own technology systems, including automation. A staggering 79% of executives surveyed consider the technical complexity of separating hardware and software layers as a significant challenge when it comes to creating software-driven vehicles (SDVs). Meanwhile, nearly half of those same executives ranked this issue as their top concern.
It’s clear that developing in-house capabilities is crucial for car manufacturers looking to capitalize on this trend. With more than 47% of respondents stating that they are struggling to recruit staff with both strong software skills and knowledge of vehicle development, it’s no surprise that GM decided to pivot its focus towards a strategy that prioritizes monetizing existing vehicles.
Tesla has been successfully charging customers for autonomous driving features for some time now. The electric car manufacturer charges $99 per month for supervised full-self driving, provided the vehicle is eligible. Similarly, Ford offers its BlueCruise driverless autonomy feature as an add-on option for a monthly fee or a one-time payment of $2,495.
While Waymo has made significant strides in developing fully autonomous vehicles, this shift towards software-driven cars could be seen as a step back from the company’s earlier ambitions. Nevertheless, it seems clear that the industry is headed in a different direction, with more focus on upgrading existing models rather than building brand-new self-driving vehicles.
The challenges ahead
Despite the potential for significant revenue streams, there are still several obstacles to overcome before SDVs become mainstream. Security concerns remain a major issue, as well as societal acceptance and regulatory hurdles. It’s possible that this shift towards software-driven cars could be slowed down by these difficulties.
In conclusion, GM’s decision to abandon its autonomous driving project is likely motivated by the financial potential offered by software-driven vehicles. With car manufacturers set to generate more than half of their revenue through this strategy by 2035, it’s clear that the industry is moving in a new direction.
Source: http://www.forbes.com
