BMW Joins Forces with German Tech Firms for Auto Data Alliance

As the tension between the United States and China tightens, automobile giants are rediscovering ways to build a cloud-based data platform.

The disruption of business operations and conflicts between China and the United States cost most companies a lot when it comes to maintaining their data. Automaker BMW decided to form an alliance with German’s SAP, Siemens, and Robert Bosch to get away from any of U.S. or China tech companies.

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The partnership with the tech giants in Germany could provide leverage for all parties. This new platform in the making enables automakers to identify shortages and avoid disruption due to the ongoing pandemic.

BMW Auto Data Alliance

Without relying on US Amazon Web Services or China’s Alibaba Group Holding, automakers can create a data-sharing platform that serves its purpose. Trade wars between China and the US are making the European companies to take control of their data, especially in the trying economic times.

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European companies fear that sensitive information could be wiped out, causing harm to the brand image. Additionally, this difficult time presents new challenges in the auto market, with fewer people buying new cars.

By having total control over their data, companies like BMW can easily access what they need, make sense of the customer data and production subsets. The automaker alliance also ensures flat and stable employment in the manufacturing side of the business, helping the economy altogether.

Telecom giant Deutsche Telekom is also joining the round table, accelerating the data sharing and analytics business. This said platform will use the European Gaia-X cloud service instead of AWS or Alibaba.

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The collaboration is set to bring together major industry and tech players in Germany and European countries. Because traditional allies are seeing a divided interest, there will be an expected shift in the dependency on American or Chinese tech companies.

Other companies taking part in the project include ZF Friedrichshafen AG. Joining the alliance provide countless opportunities for key players as they don’t need to rely on outside tech companies to access, share, and control data.

Meanwhile, the European Union also considers a harsher stance on Chinese technology as they’ve been tipped by the US National Security of security warnings. Companies like TikTok and Huawei Technologies Co. were called out for violating integral data collection and control.

Facebook is also under monitoring following a dispute with the Irish Data Protection Commission over privacy rules on international data transfers.

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