BY VIVA TECHNOLOGY 2022, PARIS: The CEOs of Qualcomm and car giant Renault Group have highlighted the benefits of cross-industry collaboration on connected vehicle developments, as the latter predicted software would help used vehicles retain their value.
In a panel discussion, Qualcomm Chairman and CEO Cristiano Amon (in the photo, on the left) and Renault Group CEO Luca de Meo (on the picture, right) argued for joint development as automakers continue to add more computing elements to vehicles.
Amon noted that the automotive industry is at the cusp of “an incredible opportunity” with connected technology meant to create new business models around services. He added that Qualcomm has seen a change in the nature of its relationship with the auto industry.
“Automakers want to have direct relationships with technology companies,” he said. “It didn’t exist before, there were many different companies in the chain. Thanks to this direct relationship, it allows us to understand what the needs of the car manufacturers are and to develop in a way to meet the demand”.
De Meo noted that Renault “cannot do everything alone”.
“We need people’s expertise, but it can’t be a classic either. [relationship] between customers and suppliers. Technology is changing and integrating technology into a car is not an easy thing, so you need deeper collaboration.
Among the benefits of various connected vehicle technologies, Amon highlighted the immediate opportunity to bring assisted driving technology to all vehicle price points, while de Meo highlighted a change in the value of the vehicles themselves. .
“Today, software represents 10% of the value of the car. In 2030, it will be 40%,” added de Meo.
“Cars will become intelligent, they will learn from the driver,” noted the Renault boss. “Probably in three years your car will be better than [on] the first day because he knows you.
“Having a car that is better at the end of its life cycle than at the start will probably solve one of the big bugs in our business: after three years, a car you pay €30,000 for is worth €15,000,” he added. “You clearly see that if you have a car that improves, the impact on the residual value will be huge and it will change our business.
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