The automotive industry is plunging headlong into a future dominated by electrification, automation, and connectivity. As a result, Google
The 6-year partnership will integrate Google Maps, Google Assistant, and the Google Play Store in Ford and Lincoln vehicles across all price points. Ford's CEO, Jim Farley, expects that the new connectivity options afforded by the partnership will be crucial to building brand loyalty in the years to come. Google Assistant will help minimize driver distractions. Google Maps will give drivers real-time traffic updates, with features like rerouting and lane guidance. Notably, the integration with Google's Play store will help Ford and other 3rd party developers to create custom apps tailor-made for the driving experience.
The partnership represents the latest thrust in Ford's 11 billion dollar transformation plan. A plan which has only accelerated under Farley's brief tenure as CEO. The plan has been in the works since 2018 and was initiated by Farley's predecessor, Jim Hackett. The transformation aims to bolster shareholder confidence in a brand seen by many as a laggard.
From the outset, the Google partnership is likely to save Ford millions in development costs, according to Farley. The CEO complained that Ford's current infotainment experience is "not competitive with your cell phone," CNBC reports. But the partnership isn't just about plugging Google's existing tech into Ford vehicles. Google's cloud services will offer a means for Ford to gain revenue far beyond the dealership. These cloud services will allow the automaker to send customers real-time alerts about maintenance or trade-in opportunities. These services could generate 5 billion in additional revenue, according to Morgan Stanley
Beyond merely transforming the way drivers interact with their cars or the way dealerships interact with drivers, the partnership will also allow Ford to retool its supply chain. Unlike its previous collaboration with Microsoft, the Google Ford partnership is not merely transactional. Engineers from both companies will work together under a new initiative termed "Team UpShift." According to David McClelland, Ford's VP of strategy and partnerships, Team UpShift will allow the automaker to "unlock experiences and be disruptive,"Bloomberg reports.
Thomas Kurian, CEO of Google Cloud, expects Google's expertise will impact every area of the Ford customer's experience.
"The experience people have they're driving, the experience they have in the front office, the transformation of manufacturing and the supply chain and the modernization of the IT system," he said, quoted by Bloomberg.
In short, the Ford Google partnership will transform the automaker into a truly future-facing company. Google's expertise will give Ford a foothold in critical areas such as autonomous vehicles, electrification, and in-vehicle connectivity. And using AI, Team UpShift won't just transform the driving experience; it will also maximize the efficiency of Ford's supply chain.
Jim Farley has already managed to boost Ford's share price by 60% during his tenure, CNBC reports. With Google's help, that margin is only likely to increase.
- 1.https://www.cnbc.com/2021/02/01/ford-and-google-sign-six-year-deal-for-android-in-car-apps-cloud.html
- 2.https://media.ford.com/content/fordmedia/fna/us/en/news/2021/02/01/ford-google-accelerate-auto-innovation.html
- 3.https://www.cnbc.com/2020/10/01/new-ford-ceo-jim-farley-announces-restructuring-and-executive-shakeup.html
- 4.https://www.bloomberg.com/news/articles/2021-02-02/morgan-stanley-says-ford-google-deal-may-yield-5-billion-profit
- 5.https://www.bloomberg.com/news/articles/2021-02-01/google-snags-ford-cloud-partnership-in-coup-over-microsoft