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Car Makers Hold Smartphones at Bay
Apple, Google Phones Get Access to, But Not Control of Dashboard Screen
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Apple and Google are stepping on the gas to integrate their smartphones with car communications systems, but car makers are insisting the dashboard screen belongs to them.
By William Boston, George Downs
GENEVA—Apple Inc. and Google Inc. are stepping on the gas to integrate their smartphones with car communications systems, but big car companies insist the dashboard screen belongs to them and the only role for the pair is as app supplier.
One reason car makers are reluctant to let Apple and Google get too close to their in-car networks is that no one can say with any certainty how valuable the online services revenue and data generated by drivers and passengers will become. Big Data, the information created by every mouse click and song pick online, is a growing source of digital revenue.
“We are trying to figure out what Big Data means for us, also in respect to our partners,” said Norbert Reithofer, chief executive of BMW AG. “We’ve brought our own group of specialists on board.”
The German luxury car maker has its own in-car communications system called BMW Connected Drive that establishes an Internet connection through an embedded mobile phone card, making the car’s communications system independent of a smartphone. It doesn’t need Apple or Google to provide services ranging from navigation to restaurant searches and hotel booking.
BMW’s system costs €500 ($686) for the first three years of service, including concierge services, and €500 a year after that. BMW is talking to Apple and Google about allowing their smartphones to attach with its Connected Drive to give owners access to their music, files and contact lists.
Another reason car makers want to retain control of the car’s network is for service revenue and branding. As drivers and passengers use the system the car manufacturer has a unique opportunity to connect with its customers for a fee.
In the U.S., some estimates put General Motors Co.’s revenue from its OnStar system at about $1.5 billion a year. GM’s Opel unit plans to deploy OnStar in every new model it makes beginning in 2015 and sees the onboard network as an important part of its efforts to rebuild its brand in Europe.
“Our chance to differentiate ourselves from Volkswagen is design,” said Tina Mueller, Opel’s design chief. “OnStar is a perfect tool to create brand loyalty.”
During this week’s Geneva International Motor Show, Daimler AG’s Mercedes-Benz, Volvo Car Corp., and sports car maker Ferrari SpA announced that they would offer CarPlay, Apple’s in-car communication system.
CarPlay only works with the Apple iOS7 operating system and iPhone 5 or later, a potential problem for owners of other smartphones. “Our goal has always been to create the best possible experience for the iPhone customer,” said Stephen Chick, a representative of Apple’s CarPlay.
In contrast, MBrace, BMW’s Connected Car and onStar provide access and monitoring of the car’s battery, oil, fuel tank as well as their own navigation and hotel or restaurant booking that also are available as phone apps.
Although it is integrating CarPlay, Mercedes-Benz denies that it is locking itself into Apple’s world.
“We are also working with Google on integrating the Android system in the car,” said Kal Mos, Mercedes-Benz’s senior engineering director for connected infotainment and consumer electronics. “The customer should have the Mercedes experience from the moment he steps into the car.”
Mercedes-Benz’s MBrace communications system is typical of how car makers are beginning to give drivers access to their smartphones and applications while still retaining control of the in-car network. CarPlay appears on MBrace as an icon like a word processor or any other app. The driver can easily toggle between CarPlay and MBrace for music or concierge services.
Mr. Mos is based in Silicon Valley, where Mercedes-Benz keeps tabs on the latest technology trends and operates its own development center to create apps for MBrace.
Car makers won’t be able to remain completely independent of the big technology companies, however.
“Most of the developers are creating apps for Apple and Google” smartphones, said Daimler’s Mr. Mos. “We want to bring these technologies to the car.”
Write to William Boston at william.boston@wsj.com
Car Makers Hold Smartphones at Bay
Apple, Google Phones Get Access to, But Not Control of Dashboard Screen
Permalink
Expand/Collapse
Apple and Google are stepping on the gas to integrate their smartphones with car communications systems, but car makers are insisting the dashboard screen belongs to them.
By William Boston, George Downs
GENEVA—Apple Inc. and Google Inc. are stepping on the gas to integrate their smartphones with car communications systems, but big car companies insist the dashboard screen belongs to them and the only role for the pair is as app supplier.
One reason car makers are reluctant to let Apple and Google get too close to their in-car networks is that no one can say with any certainty how valuable the online services revenue and data generated by drivers and passengers will become. Big Data, the information created by every mouse click and song pick online, is a growing source of digital revenue.
“We are trying to figure out what Big Data means for us, also in respect to our partners,” said Norbert Reithofer, chief executive of BMW AG. “We’ve brought our own group of specialists on board.”
The German luxury car maker has its own in-car communications system called BMW Connected Drive that establishes an Internet connection through an embedded mobile phone card, making the car’s communications system independent of a smartphone. It doesn’t need Apple or Google to provide services ranging from navigation to restaurant searches and hotel booking.
BMW’s system costs €500 ($686) for the first three years of service, including concierge services, and €500 a year after that. BMW is talking to Apple and Google about allowing their smartphones to attach with its Connected Drive to give owners access to their music, files and contact lists.
Another reason car makers want to retain control of the car’s network is for service revenue and branding. As drivers and passengers use the system the car manufacturer has a unique opportunity to connect with its customers for a fee.
In the U.S., some estimates put General Motors Co.’s revenue from its OnStar system at about $1.5 billion a year. GM’s Opel unit plans to deploy OnStar in every new model it makes beginning in 2015 and sees the onboard network as an important part of its efforts to rebuild its brand in Europe.
“Our chance to differentiate ourselves from Volkswagen is design,” said Tina Mueller, Opel’s design chief. “OnStar is a perfect tool to create brand loyalty.”
During this week’s Geneva International Motor Show, Daimler AG’s Mercedes-Benz, Volvo Car Corp., and sports car maker Ferrari SpA announced that they would offer CarPlay, Apple’s in-car communication system.
CarPlay only works with the Apple iOS7 operating system and iPhone 5 or later, a potential problem for owners of other smartphones. “Our goal has always been to create the best possible experience for the iPhone customer,” said Stephen Chick, a representative of Apple’s CarPlay.
In contrast, MBrace, BMW’s Connected Car and onStar provide access and monitoring of the car’s battery, oil, fuel tank as well as their own navigation and hotel or restaurant booking that also are available as phone apps.
Although it is integrating CarPlay, Mercedes-Benz denies that it is locking itself into Apple’s world.
“We are also working with Google on integrating the Android system in the car,” said Kal Mos, Mercedes-Benz’s senior engineering director for connected infotainment and consumer electronics. “The customer should have the Mercedes experience from the moment he steps into the car.”
Mercedes-Benz’s MBrace communications system is typical of how car makers are beginning to give drivers access to their smartphones and applications while still retaining control of the in-car network. CarPlay appears on MBrace as an icon like a word processor or any other app. The driver can easily toggle between CarPlay and MBrace for music or concierge services.
Mr. Mos is based in Silicon Valley, where Mercedes-Benz keeps tabs on the latest technology trends and operates its own development center to create apps for MBrace.
Car makers won’t be able to remain completely independent of the big technology companies, however.
“Most of the developers are creating apps for Apple and Google” smartphones, said Daimler’s Mr. Mos. “We want to bring these technologies to the car.”
Write to William Boston at william.boston@wsj.com