Existential Risk': Western Car Companies Are Blowing The Software Race

"The survey of 1,002 senior SDV executives found that Chinese automakers are the most focused on how they build and scale SDV capabilities while many Western automakers remain spread across legacy platforms."

"Western players are at greater risk of dependency on outside partners at key SDV control points, making it harder to capture full returns from their SDV investments."

"Creating software-defined vehicles isn't about turning cars into a software product; it's about owning the software in your vehicle."

A report from AlixPartners reveals that Western automakers are ceding control of user experience to third-party companies, hindering their ability to compete with Chinese firms in software-defined vehicles (SDVs). A survey of 1,002 senior executives indicates that Chinese automakers prioritize building SDV capabilities, while Western companies rely on outdated platforms and software. This dependency on external partners increases risks and limits potential returns on SDV investments. The restructuring of Volkswagen Group's CARIAD software division exemplifies the challenges faced by traditional automakers in adapting to the software-driven automotive landscape.

Read at insideevs.com