This guy might know his shit, but he misses a GIANT point when he says: Look at the picture of the "Google" car. It's not a Google car. It's a Prius which Google has retrofitted with its technology. That's a non-trivial difference. If anything, this technology should strengthen car manufacturers when all is said and done. It's easy to get Foxxcon to manufacture your new smart phone to unseat BB. It's no easy task to build a car. The car process starts in an art studio and continues its journey for sometimes up to a decade to make it to production. It's a complicated, global logistics nightmare that can't be pulled off by a technology company, no matter how big and rich (for example, just the engine of your car probably has components from at least three continents and parts form a dozen different [specialized] companies). Unless Google is planning on buying one of the major players, they will never be more than a supplier, and it will be in everyone's interest to cooperate. Sure, as a supplier Google is going to command a lot more than some company that raw casts engine blocks, or molds plastic for your bumper, but they will still need manufacturers as much as they're needed in turn. And anyway all this rests upon people not wanting to be autonomous, which is still far from clear. Google is betting that people don't want autonomy, but the automakers' market research suggests otherwise. Market research can, obviously, be incorrect, because consumers don't always know what they want until they have it. But for now, all indications are that people like driving, and want the option to drive when they feel like it. There's a reason that GM has four brands, and each brand has a bunch of offerings, and that GM is just one company among a dozen major players internationally: people like choice. It's a sad world if Google takes over, and we're all forced to drive Model T's again. Maybe I'm a luddite (and in full disclosure I'm also a person who is deeply invested in the auto industry both financially and personally), but I just don't think that monopoly is a viable direction for the industry. And I think that especially in the US, it will be a very difficult sell to get people to completely abandon autonomy.Unfortunately, disruptive innovation can upend even the most well-conceived incremental strategies. Just look at Blackberry, Blockbuster, Borders, DEC, IBM, Kodak, Microsoft, Motorola, Nokia, Sears, Yahoo and most of the TV, newspaper and publishing industries—to name just a few bankrupt or struggling former industry leaders. They all bet that non-incremental approaches would not pan out, and struggled with the consequences when those bets went sour.
Very valid point. I think you might find this video interesting: (I'd love to know what your wife thinks of the design and / or their design process. How capable is Google at designing cars?) The thing is, it's too early in the production process for Google to make a final decision on how to implement their system. That's what we're really talking about, a system of computers and some sensors. Making those do something useful is what Google's good at. All Google wants is to bring their system into as many cars as possible. Here's what could happen: - Google will build a car themselves, or acquire a car company. Remember, they acquired Motorola for $11 billion just to get into the smartphone game. - Google will partner with a large car company. Collaboration means that Google doesn't have to manage the car part except from some sensor placements. - Google will license their system to other car companies. Ever heard of George B. Selden? Held the patent for the automobile, became rich off royalties. Google could end up in the same luxurious position. They're far ahead of the competition. Most people (including the author of that piece), after seeing the prototype car released last month, assumed that Google would automatically go for option #1. They're making a car themselves now, surely the future Google car is from Google? I'm of the opinion that the third option is the most likely - Google having their proprietary system, selling it to GM, VW, Toyota etc as an option on regular cars, like cruise control is now. Further in the future it might be the other way around, with cars having GoogleDrive as default and steering as an option.
They're rich enough to poach designers from established companies, or to hire new grads. There are only three major schools in the US that train car designers, and most car designers come from one of them, or from one of the handfull of others in UK, France, Korea or Japan. So my guess is they could figure it out. But as to which option Google will choose, I think it most certainly won't be option one. Take total employment, as an example. Google employs about 47,000 people, if Wikipedia is to be trusted. GM alone employs 205,000 people directly, with hundreds of thousands of others working for suppliers needed to support their manufacturing operations. GM's domestic market share is 18%, with their world market share at about 11%, according to the most recent figures I could find. Do the simple math to extrapolate the total global automotive workforce. It's staggering. Unless Google is planning to increase it's workforce by two orders of magnitude (in a wholly different industry than the one in which they have expertise), they aren't really in a position to dominate anyone, are they? Any asshole with some knowledge, money, and time can make a prototype. Only a mega manufacturing company can make safe, affordable, attractive, mass production vehicles. So yeah, option two or three are the only real options, but really option three is the only logical one, unless Google really wants to get into the auto business, which I'm sure they don't (that $11 billion is chump change compared to what a major auto company is worth; even if their market cap is lower, one needs to value assets to assess a sale price, and all the factories and capital equipment of a major player adds up to a boatload of cash). (And yes, I used to hang out at a bar on Selden street in Detroit when I lived a block away--everything here is named after auto company men.)(I'd love to know what your wife thinks of the design and / or their design process. How capable is Google at designing cars?)