Google’s linking of the IT and automotive industries

Expectations and concerns with the adoption of Google Maps and Android Auto

2018/12/05

Summary
Google's involvement in the automotive industry
Smartphone compatible services
From user to vehicle (Android OS strategy)
Renault-Nissan-Mitsubishi Alliance adopts Android OS for on-board systems
Hardware as a means of providing services
Information obtained from smartphones may also be a risk to cars

Summary

Google sales revenue
(Source: Based on Alphabet Investor Relations materials)

When discussing Connected as it relates to the automotive industry, the presence of companies in the IT industry cannot be ignored. Conversely, it is also a fact that there are a number of threats and concerns facing IT companies entering the automotive industry business arena.

Of the many IT companies, Google is among the most aggressive in entering the automotive industry. Google was founded in 1998 by Larry Page and Sergey Brin while they were Ph.D. students at Stanford University in California, with Google growing into an IT powerhouse over the past 20 years. The company's sales in the third quarter of 2018 amounted to $33.74 billion (about JPY 3.4 trillion), with an operating margin of 25%.

While keeping in mind an understanding of Google’s business as part of the Alphabet organization, this report considers some of the approaches that Google has considered concerning the automotive industry, as well as some of the directions their strategic planning may take going forward.

In the sequel to this article, we will consider some of the initiatives in which Google and Waymo are engaged regarding autonomous driving.

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