Google and Apple -- Who will Lead the Automotive Renaissance?

The global automotive market is more than 100-years-old and generates over $9 trillion of revenue annually, yet the industry has seen very few major advancements since the early years. During the past century, vehicle fundamentals, including functionality, features and overall system design, have remained relatively the same.

Much of this stagnation has come from the top. Bob Lutz, a former executive at BMW and GM, once said, “…you can’t show me one company in the world that, to date, has made a nickel on electric cars…” Though the Big Three auto makers have made some investments in autonomous-drive technology, Lutz’s voice still represents the general attitude of the auto industry – loudly resistant to change.

This resistance is creating a gap for Silicon Valley and others in the tech industry. Technology innovators are already starting to look for more than simple engines, transmissions and fuel-control systems. Appetites are shifting towards advanced battery technology, artificial intelligence and software control systems. As it is, the current auto industry has essentially little or no experience in developing such high-tech vehicles—which has opened the door for competition. Enter Alphabet (Google GOOGL +2.29%), Apple AAPL +1.82% and a range of new startups, who are already aggressively pursuing the market with self-driving and autonomous car technology.

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