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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.

Dealers mobilize to protect their margins from automaker subscription services

Six individual auto brands — Lincoln, Cadillac, Porsche, Mercedes, BMW and Volvo — have established or are trialing a vehicle subscription service in the U.S. Three third-party companies — Flexdrive, Clutch and Carma — run brand-agnostic subscription services. And three automakers — Mercedes-Benz, BMW, and General Motors — have also launched short-term rental services. Dealers, afraid of how these trends might affect their margins, are building political and lawmaking campaigns to protect their revenue streams. So far, three states are investigating automaker subscriptions, and Indiana has banned any such service until next year. It's certain that those three states are the first fronts in a long political and legal battle. Powerful dealer franchise laws mandate the existence of dealers and restrict how automakers are allowed to interact with customers to sell a vehicle. On top of that, Bob Reisner, CEO of Nassau Business Funding & Services, said, "Dealers and their associations are among the strongest political operators in many states. They as a group are difficult for state politicians to vote against." In California earlier this year, the state Assembly debated a bill with wide-ranging provisions to protect against what the California New Car Dealers Association called "inappropriate treatment of dealers by manufacturers." One of those provisions stipulated that subscription services need to go through dealers, but that item got stripped out when dealers and manufacturers agreed to discuss the matter further. In Indiana, Gov. Eric Holcomb signed a moratorium on all subscription programs by dealers or manufacturers until May 1, 2019, to give legislators more time to investigate. Dealers in New Jersey have taken their campaign to the state capitol, asking that the cars in subscription programs get a different classification for registration purposes. Automakers run the current subscription services and own the vehicles. Sign-ups and financial transactions happen online or through apps, leaving dealers to do little more than act as fulfillment centers to various degrees, with little legal recourse as to compensation amounts when they're called on to deliver or service a car. That's a bad base to build on for business owners who've sunk millions of dollars into their operations.

Mercedes teases IAA Concept for Frankfurt

Mercedes-Benz is being coy about the IAA Concept you see above. The Germany automaker admits its name is short for Intelligent Aerodynamic Automobile, but isn't letting out much more. In a very short statement, Mercedes describes the IAA as "two cars in one: an aerodynamics world champion and a four-door coupe embodying irresistible design." Does that mean the IAA points the way forward for the next version of the brand's shapely CLS, which it also refers to as a four-door coupe? Probably, but we're not sure where the "Intelligent" part comes in. Will it be an electric machine that presages a competitor to the Tesla Model S? We'll just have to wait and see. One thing is for certain: The Mercedes IAA looks sleek. While the details of its design are shrouded in strategically placed shadows, we can clearly see a double-bubble roofline that flows seamlessly into a graceful hatch that reminds us of the Audi A7, which isn't a bad design to borrow cues from. The overall shape of the Intelligent Aerodynamic Automobile makes it look like bodywork shrink-wrapped atop the chassis as tightly as possible. We're keen to take a look at the IAA ourselves, and that's going to happen rather soon. Mercedes promises a debut at the Frankfurt Motor Show in the early afternoon (Eastern). Stay tuned. The Mercedes-Benz "Concept IAA" (Intelligent Aerodynamic Automobile) is two cars in one: an aerodynamics world champion and a four-door coupe embodying irresistible design. World premiere. September 14, 7.30 pm (CEST). Featured Gallery Mercedes IAA Concept teasers News Source: Mercedes-Benz via Facebook Design/Style Frankfurt Motor Show Mercedes-Benz Coupe Concept Cars Sedan