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When Android Automotive goes in the dash, Google wins — and automakers lose data

You've gotta hand it to Google for the way the Silicon Valley tech giant has made indelible inroads into the car on multiple fronts. The most obvious is with its pioneering self-driving car technology that's caused car companies to get their act together on autonomous vehicles — and also collaborate with Google. Google has more directly extended its influence and data-mining capabilities into the car with its Android Auto smartphone-projection platform that most major automakers have adopted along with Apple's CarPlay. And now it's preparing to dig even deeper into dashboards by deploying its open-source operating system, Android Automotive, beginning with Audi and Volvo. Volvo recently announced that its next-generation Sensus infotainment system will run Android Automotive as an OS and include Google's Play Store for cloud-based content, Maps for navigation and Google Assistant for voice recognition, which can even command a car's climate control. By embedding Google in the dash, Volvo says owners will get an improved connected experience. "Bringing Google services into Volvo cars will accelerate innovation in connectivity and boost our development in applications and connected services," Volvo senior vice president of R&D Henrik Green said in a statement. "Soon, Volvo drivers will have direct access to thousands of in-car apps that make daily life easier and the connected in-car experience more enjoyable." Having Android Automotive onboard could benefit drivers — and provide a big win for Google, since it opens a deep and lucrative new data-mining vein for the company. But it's a wave of a white flag for car companies when it comes to delivering their own cloud-based content and services. It also represents a massive data giveaway and, for Audi, a reversal of earlier reservations about letting Google get too much access to car data. Not long after Android Auto and Apple CarPlay were introduced in 2014 and most automakers eagerly embraced the technologies, several German automakers second-guessed their decision when they realized what was at stake: data. At a conference in Berlin in 2015, Audi CEO Rupert Stadler said car owners "want to be in control of their data, and not subject to monitoring." A few months earlier, Stadler stated that "the data that we collect is our data and not Google's.

There might be a second VW software cheat

The initial flurry of news about Volkswagen's diesel scandal is just beginning to settle down, but the company is months away from actually having any of the affected vehicles fixed. A stop sale is still in effect on new examples in the US, as well. The remedy process now faces yet another hurdle because the Environmental Protection Agency is requesting more info about other previously undisclosed emissions software on the engines, Bloomberg reports. Separate from the defeat device that evades tests, this new bit of code reportedly helps warm up the engine. However, automakers are supposed to disclose to the EPA any software that can affect emissions. The tech isn't necessarily against the law, but the regulatory agency needs to know about it during evaluations. The company didn't reveal this system until applying for certification on the latest TDIs. "VW did very recently provide EPA with very preliminary information on an auxiliary emissions control device that VW said was included in one or more model years," EPA spokesperson Nick Conger told Bloomberg. In response to the disclosure, VW took back its application for the diesels until it provided more details to the EPA on the previously undisclosed code. So far, there's no evidence that this code is actually another defeat device, though. Regulators are preparing an onslaught of tests on the revised engine to make sure the German automaker isn't gaming the system again. VW has until November 20 to outline a fix for the diesels to the California Air Resources Board. In response to the scandal, the company is preparing for severe cutbacks to have enough money to pay for all of the expected fines and repairs. It also recently announced plans for a serious electrification push in the near future.

United States drivers buying fewer Mexican-made cars

Crossovers and pickup trucks are not only growing in market share, they're also more profitable than cars. A crossover on the same platform as a sedan retails for thousands more, despite similar components. It's one of the reasons we've seen automakers rapidly shifting production of their sedans and hatchbacks to Mexico, where cheap labor preserves the thin profit margins on these inexpensive vehicles. But as the market continues to shift in the United States, Mexico is getting burned by its lack of product diversity. The country's auto exports, which are heavy on cars, suffered a 16-percent drop last month, Automotive News reports. In total, year-over-year exports fell from 233,515 to 197,020 last month, while year-to-date exports are down by 7.4 percent, from 922,029 to 854,118. The number one culprit? America – which usually accounts for 75 percent of Mexico's exports – and its appetite for crossovers and pickup trucks bolstered by cheap gas prices. While Mexico does build some light truck models – AN specifically calls out the Ram 2500, Honda HR-V, GMC Sierra, and Toyota Tacoma as export leaders – the vast majority of vehicles rolling out of its factories are sedans and hatchbacks. In fact, the three biggest drops in Mexican exports came from companies whose south of the border factories only build cars – Ford (Fusion/Lincoln MKZ and Fiesta), Mazda (Mazda3), and Volkswagen (Golf and Jetta). Mexican Automotive Industry Association President Eduardo Solis told AN the export shortfall will likely be sorted out sooner rather than later, thanks to a pair of new factories – a Kia car factory and an Audi SUV plant – that are coming online by year's end. The two facilities will add around 100,000 vehicles to the country's export totals, which Solis said should leave the industry on the verge of breaking another export record in 2016. But how sustainable will these record-breaking years be? Slapping an "Hecho en Mexico" sticker on a new German SUV won't be enough to change the fact that Mexico's product mix is tilted too heavily towards body styles that are not growing in volume. Mexico's record-breaking export years probably aren't at an end, but we'd argue they're certainly under threat. News Source: Automotive News - sub. req.Image Credit: Omar Torres / AFP / Getty Images Plants/Manufacturing Ford GMC Honda Mazda RAM Volkswagen Truck Crossover SUV Mexico