Why Google Spells Trouble for Carmakers

Jan 07, 2014 11:16 AM EST | Jordan Ecarma

Despite their eagerness to become part of the Internet age, carmakers are approaching companies like Google and Apple with trepidation for fear of becoming irrelevant.

As much as automakers want connectivity in their vehicles, they are risking becoming "mere hulls for clever software," The Wall Street Journal's CIO Journal blog reported.

"Their terror is all the excitement comes from the software. That is what keeps them up at night all the time," the late Clifford Nass, a Stanford University professor, told CIO Journal last year. They fear it "will be like having an Android phone by Samsung. That is unbelievably terrifying for them."

Even though carmakers are furthering their connectivity goals with such partnerships as Google with Audi and Apple with BMW and Honda, the engineering that drives automakers could be reduced to an afterthought if tech companies take over the vehicle production process.

Google has reportedly been working with the German carmaker to make a new infotainment system, sources told The Wall Street Journal.

"The car is becoming the ultimate mobile device," Thilo Koslowski, an analyst at the research firm Gartner Inc. who specializes in advanced in-car electronics, told WSJ. "Apple and Google see that and are trying to line up allies to bring their technology into the vehicle."

Apple has been working with BMW, Daimler's Mercedes-Benz division, General Motors and Honda.

This year's Consumer Electronics Show, where Google is expected to announce the new infotainment system, will feature the next wave of car technology with autonomous vehicles expected from Audi, Ford and more.

Google, Apple and other tech companies have also been busy buying up tech patents to prepare for smarter cars.

Google has 310 patents in the United States for such innovations as smart devices for cars and navigation, while Apple has 36 such patents, Forbes reported.

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