🌱Autowist Report 75

Salesforce's new Connected Vehicle App, HW getting outdated, Ford Broadens Electrification Strategy, VW wants to try a lifelong lease model, Europe Fast Charger Network Growth

Salesforce's new Connected Vehicle App (Link)

Summary: Salesforce has launched "Connected Vehicle," a new application within its Automotive Cloud, designed to enable automakers to deliver personalized, tech-driven driver experiences more efficiently. The application provides a unified console and tools that allow automakers to rapidly deploy new services and features using over-the-air (OTA) updates. This system facilitates real-time data sharing between vehicles and the cloud, enhancing both safety and customization for drivers.

Key industry players like Sony Honda Mobility and Qualcomm Technologies are already collaborating with Salesforce to enhance connected car experiences. For instance, Sony Honda Mobility plans to use Salesforce’s technology for its upcoming AFEELA electric vehicle brand, while Qualcomm's Snapdragon platform will support personalized and AI-driven experiences.

Connected Vehicle is available now, with additional features like Connected Vehicle Summary and Remote Actions planned for release later this year and in 2025. Pricing options vary based on the features and editions selected by automakers.

Why is this interesting?

  1. I consider salesforce to be a one of the tech giants even though they might not be in the news as much. And their approach to this is very interesting due to 2 reasons

  2. Firstly, they are approaching this "SW taking over automotive / SDV" trend from the perspective of their customers. They are in the best position to create a platform that can capitalize on this new trend to allow their customers to easily provide services via vehicles. This is in line with their existing business meaning existing customers will get an added reason to continue sticking with them. And for prospective customers to choose them as they also have an in-vehicle channel now possible through this connected vehicle app.

  3. Secondly, they are also betting that the streaming based approach is what give\s them the best chance for this platform to take off. By "streaming", what I mean is that the on-board application is probably a thin layer application that mainly is a lightweight interface to a web backend server where the application is actually deployed. They mention that they are leveraging AWS IoT FleetWise and Qualcomm Technologies: With Snapdragon® Car-to-Cloud, Qualcomm Technologies’ connected services platform for its Snapdragon® Digital Chassis™ platform.

Summary: The iPhone 15 may become obsolete faster than any previous model due to the upcoming releases of the iPhone 16 and iPhone SE 4. The iPhone 16 will feature Apple Intelligence, a new suite of AI-powered features in iOS 18, which the iPhone 15 won't support. This makes the iPhone 15 less appealing, especially with the SE 4 set to launch in 2025, offering similar features and the same A18 chip at a lower price. Given these options, the iPhone 15 may struggle to compete, leading to a quicker decline in its relevance.

When I read this article, I couldn't help but think about how this applies to the whole SDV trend. Typically most smartphones are updated every year with new hardware. OS's like Android and iOS also releases a new version every year. Automakers are striving very hard to reach a similar approach to their in-car software. That begs the question: What about the hardware and introduction of such hardware dependent features?

Based on the press releases of the OEMs I have seen so far, there is no indication of the hardware timelines changing from the existing model year approach. Don't get me wrong, OEMs also release "HW" every year as part of a new model year. But they are evolutionary changes except for once every 4-5 years, they might look at a more major upgrade at best.

The implications that this has on SW timelines and more importantly how they would be able to maintain existing software during the life of the product will have a major role to play what value can SW "actually" add to the vehicle.

For me, the key takeaway is that the HW timelines for automakers are much more fragile than that of smartphones. And companies like Apple could afford to have such breaks in compatibility due to introduction a very hardware dependent feature(like Apple Intelligence), but I am not so sure OEMs would be capable of doing so. This could possibly lead to bloated up SW maintenance costs that OEMs will be stuck with if they really don't get their act together.

Ford Broadens Electrification Strategy (Link)

Summary: Ford is expanding its electrification strategy to offer more options for customers, aiming to improve profitability and reduce CO2 emissions. The company is focusing on electrifying its competitive vehicle segments, such as commercial vans, mid-size and large pickups, and long-range SUVs. Ford is also realigning its battery sourcing strategy to reduce costs and increase efficiency. This includes moving some battery production to the U.S. to qualify for tax credits under the Inflation Reduction Act. The company’s strategy includes delaying the launch of its next-generation electric truck, "Project T3," to take advantage of cost-saving innovations.

In its fully electric portfolio, Ford plans to introduce an all-new commercial van that will begin production in 2026 in Ohio, closely followed in 2027 by two new pickup trucks – a medium-sized pickup based on the platform designed by Ford’s California skunkworks team and a next-generation truck to be assembled in Tennessee

This bit above looked very interesting to me. A platform designed by skunkworks team.

In 2022, Ford established a skunkworks team in California focused on changing the company’s approach to next-generation vehicle development and bending the cost curve on electric vehicles. The team takes a systems-integration approach across design, engineering, supply chain and manufacturing to fundamentally rethink the full vehicle. Managed to reduce cost and complexity, the approach will go deeper into the supply chain and benchmark cost against the best competitors in the world.

“We recruited the most technically skilled and creative professionals from inside and outside Ford to drive a radical change in how we develop an electric vehicle,” Farley said. “The work of this highly talented team has evolved into a critical enabler of our electric vehicle strategy. These electric vehicles will be lower cost, and not compromised in any way.”

They take a more systems approach and bring together people from all parts of the value chain. This is a testament to how the organization strategy plays a key role in where you end up in 5-10 years time. In my opinion, to take a piece of tech from 0->1, it takes a high performing cross functional team, who doesn't "have" to "play" by the rules as much. And it is up to management to accept it and empower such a team to make it happen. And save their management theory more for taking something proven and mature to scale.

VW wants to try a lifelong lease model (Link)

Summary: Volkswagen is shifting its business model from primarily selling vehicles to focusing on vehicle usage. Under this new strategy, the company plans to retain ownership of a significant portion of its vehicles throughout their entire lifecycle, rather than just during the initial leasing period. Currently, about 60 percent of new cars remain owned by Volkswagen, but this figure is expected to rise, particularly for electric vehicles. Volkswagen anticipates that 80 percent of its electric vehicles will remain on its books, while the target for combustion engine vehicles is 50 percent. This approach will be supported by a new app that offers various mobility services, such as leasing, rentals, subscriptions, and car sharing, in collaboration with strategic partners.

Chart of the Day: Europe Fast Charger Network Growth

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