Xperi @ Automotive Tech Week Europe: Outsource or Insource Cockpit Tech?

On Sep 16, 2021, Bob Dillon joined a panel of representatives from Google, Cerence, and Porsche to discuss a new trend in automobile manufacturing. Specifically,  as Volvo and Polestar are the first to adopt Google’s newest vehicle operating system for HMI and soon will be followed by other major automakers, this trend raises new questions about the value of developing crucial – and enormously expensive -- HMI systems largely in-house.

• Which strategy is the best long-term bet for creating compelling, future proof HMI, infotainment, and control systems?
• What does this growing trend mean to the future of industry consortiums?
• Will in-house development always be the best choice for OEMs with the deepest pockets?

Bob Dillon touches on those and other topics, such as:

1. If you do adopt the Google Android GAS model, as Volvo has:

• How do the OEM retain control of your brand in the cabin?
• How do the OEM ensure the privacy of your customer’s data?
• How do the OEM ensure the quality of the user experience now and throughout the life of the vehicle?

2. In the given topic development of “crucial HMI systems” is characterized as “enormously expensive”. But the cost of an HMI does not go away under Google GAS, it’s merely shifted from the OEM to Google unless all cars have the same HMI.

• What does Google get for assuming this cost now and into the future?
• Google has executed the same model in mobile phones and TVs for many years and the outcome is clear. Only Google makes money. Brands and hardware manufactures, with the exception of Samsung, earn little or no profit in the long-run. Why will Automotive be different?

3. Long-term tier-1 and tier-2 partners of the OEMs offer products and services that enable OEMs to build HMIs that are as rich and immersive as the ones offered by Apple, Amazon and Google. Opportunities to monetize the in-cabin experience with varying intensity are also enabled. The cost to implement these HMIs are dramatically reduced using these services. What value does FANG offerings really bring?

4. AOSP + 3rd-party services. Best of both worlds?