Software steering the auto industry

The Financial Times had a great article this week about the fact that as software becomes an increasingly important part of the overall cost of the vehicle (according to BCG, the “cost of the electronic parts in the average vehicle will rise from 20% in 2004 to 40% this year” and “a premium class car now contains 100 microprocessors and runs on 100m lines of software code”), it is revolutionizing the auto manufacturing industry and shifting the balance of power between the auto OEMs and the big Tier 1 suppliers (of note: “Bosch and Continental supply 40% of vehicle electronics”). As the vehicle increasingly becomes a computer on wheels, Silicon Valley giants, like Google and Apple, can become powerful players in the mobility space, once dominated by Detroit.

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