In a strategic partnership announced on Monday, Feb. 1, by car manufacturer Ford and multi-tech company Google, vehicle in-connectivity will feature artificial technology.
Google is said to assist the automaker with cloud computing services to install infotainment systems in its vehicles starting 2023. The six-year deal is part of Ford’s road to accelerating its operations and develop better cars with awesome systems.
While the deal isn’t exclusive, meaning other companies can use other cloud or any existing Ford data centers, Google will be using mobile dominance assets to help with the cloud business.
Ford also said they will be working with other cloud service providers and collaborate with tech companies including Amazon Web Services (AWS).
The deal will allow Ford and Lincoln vehicles to utilize Android, Google Assistant, Google Maps, and Google Play in 2023. Google’s cloud services can also be used, along with other types of services.
Ford will also take advantage of Google’s cloud for sending car owners messages regarding the scheduled maintenance and other trade-in opportunities. Additionally, the automaker can also use supply chain logistics for manufacturing plants.
A new group is also formed under the partnership, named Team Upshift, aimed to explore the data uses of new retail and create ownership offers for Ford customers. This enables both companies to understand the customers better and enhance their experience.
Data-Enabled Services
The move to partner with Google comes from the pressure from Tesla Inc., which is the world’s most valuable automaker today. Ford lacks the technology for data-enabled services and software, data management for electric or connected vehicles.
Other automakers are also stepping up and following in Tesla’s footsteps, partnering with major tech companies. For instance, Japan’s Toyota Motor Corp. has partnered with Amazon Inc. to monetize data from the global vehicle fleet.
Volkswagen AG also made a deal with Microsoft in 2019 to roll the cloud computing services in China and the United States.
This new move also reflects Ford’s CEO Jim Farley’s unbelievable management skills since stepping into the position in October. Then, Ford’s stock went up to 60 percent.
Farley mentioned how Ford can build partnerships as part of its strategy for growth. “We have to get out of the business of doing generic things that we do not add value,” added Farley.
CEO Farley said they’ve analyzed a number of tech companies before going with Google. Ford has specifically chosen Google for the interactive cloud services.
