Renault Nissan alliance CEO believes auto industry disruptors are in for a tough ride image

The alliance chief executive officer Carlos Ghosn forecasts the new players entering the automotive industry – mostly technology companies – will have a hard ride conquering the sector.

He says the most discernible argument to support his theory is the aggressive pursuit – called headhunting – of auto industry executives as the new players seek to understand the trials and tribulations of the manufacturing and vehicle design and development. The modern vehicles are more and more becoming “computers on wheels”, with the added artificial intelligence force leading some experts to express concerns that some automakers might disappear much like computer manufacturers did in the first years of development of their respective sector. They fell victim to the need of having outside companies deliver the operating system – which put almost all the sources of the profit in the hands of the latter.

But Ghosn reckons the sheer complexity of cars – without even adding the new systems that require input from the technology companies – would form a massive barrier in front of new players looking to enter the auto industry and become a disruptive force. “I think when you are talking about autonomous drive, this is not something that you can add to the car,” Ghosn explained. He goes on to forecast the new driverless cars would be designed as such form the scratch, which lends the traditional manufacturer the leverage. Just last week Google – which has been developing its own self-driving vehicle from the ground up – has tapped John Krafcik, a former leader of the American unit of Hyundai and a tried and tested auto industry veteran to lead its autonomous project.

Via Automotive News Europe