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comment by veen
veen  ·  3538 days ago  ·  link  ·    ·  parent  ·  post: Why Automakers Should Fear Google's Driverless Car

Very valid point. I think you might find this video interesting:

(I'd love to know what your wife thinks of the design and / or their design process. How capable is Google at designing cars?)

The thing is, it's too early in the production process for Google to make a final decision on how to implement their system. That's what we're really talking about, a system of computers and some sensors. Making those do something useful is what Google's good at. All Google wants is to bring their system into as many cars as possible. Here's what could happen:

- Google will build a car themselves, or acquire a car company. Remember, they acquired Motorola for $11 billion just to get into the smartphone game.

- Google will partner with a large car company. Collaboration means that Google doesn't have to manage the car part except from some sensor placements.

- Google will license their system to other car companies. Ever heard of George B. Selden? Held the patent for the automobile, became rich off royalties. Google could end up in the same luxurious position. They're far ahead of the competition.

Most people (including the author of that piece), after seeing the prototype car released last month, assumed that Google would automatically go for option #1. They're making a car themselves now, surely the future Google car is from Google? I'm of the opinion that the third option is the most likely - Google having their proprietary system, selling it to GM, VW, Toyota etc as an option on regular cars, like cruise control is now. Further in the future it might be the other way around, with cars having GoogleDrive as default and steering as an option.





b_b  ·  3538 days ago  ·  link  ·  

    (I'd love to know what your wife thinks of the design and / or their design process. How capable is Google at designing cars?)

They're rich enough to poach designers from established companies, or to hire new grads. There are only three major schools in the US that train car designers, and most car designers come from one of them, or from one of the handfull of others in UK, France, Korea or Japan. So my guess is they could figure it out.

But as to which option Google will choose, I think it most certainly won't be option one. Take total employment, as an example. Google employs about 47,000 people, if Wikipedia is to be trusted. GM alone employs 205,000 people directly, with hundreds of thousands of others working for suppliers needed to support their manufacturing operations. GM's domestic market share is 18%, with their world market share at about 11%, according to the most recent figures I could find. Do the simple math to extrapolate the total global automotive workforce. It's staggering. Unless Google is planning to increase it's workforce by two orders of magnitude (in a wholly different industry than the one in which they have expertise), they aren't really in a position to dominate anyone, are they? Any asshole with some knowledge, money, and time can make a prototype. Only a mega manufacturing company can make safe, affordable, attractive, mass production vehicles. So yeah, option two or three are the only real options, but really option three is the only logical one, unless Google really wants to get into the auto business, which I'm sure they don't (that $11 billion is chump change compared to what a major auto company is worth; even if their market cap is lower, one needs to value assets to assess a sale price, and all the factories and capital equipment of a major player adds up to a boatload of cash). (And yes, I used to hang out at a bar on Selden street in Detroit when I lived a block away--everything here is named after auto company men.)