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It's not a car--it's a device on wheels
Updated: Mon, Jan 08 08:21 AM EST
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by Rachel Konrad, Special to ZDNet
American automakers are plugging on-board
computers with phone and email access for all at
the 2001 North American International Auto Show
in Detroit.
DETROIT--Don't call it a car. That four-wheeled
machine in your driveway is actually a "mobile
consumer connectivity unit."
That's the message from executives at American
automakers, who are strongly pushing their
dashboard technology and e-commerce efforts at
the 2001 North American International Auto Show
in Detroit. The show, one of the largest of its kind
in the world, opened Sunday with a four-day media
preview and will be open to the public Saturday
through Jan. 21.
"Connectivity is one of our highest priorities," said Wayne Cherry, vice president of
design for General Motors. "E-commerce is changing the way we think of our
vehicles."
T
he automakers and their suppliers echoed that
sentiment at the Consumer Electronics Show, which
began Saturday in Las Vegas. Numerous electronics
makers unveiled gadgets for the car, from in-dash
DVD players to voice-activated navigation units. Sirius
Satellite Radio and XM Satellite Radio also previewed
services and products for the car.
On Sunday, GM kicked off its auto show preview by
giving journalists a sneak peek at four futuristic
concept vehicles, including one with a dash-mounted
PC and cellular modem access. For years, automakers
have struggled to keep up with the faster cycle times of the electronics industry,
usually with unfortunate results: Very few automobiles come equipped with the latest
serial or UBS ports to accommodate PCs or handheld devices.
Moving toward lower end
GM, which last fall unveiled pre-installed PCs in some models of its Cadillac luxury
vehicles, hopes to change that. It plans to provide up-to-date PC access on
lower-end models and expects to make "significant announcements" on that front
later this year, Cherry said.
On Sunday, GM introduced the GMC Terracross sport-utility vehicle, which features an
integrated laptop computer with a cellular modem on the vehicle's dashboard. It also
has a configurable color instrument panel that allows the driver to display information
from the speedometer, fuel gauge, tachometer and warning lights in dozens of
different ways. Although concept cars rarely see the light of the mass-production
assembly line, automakers liberally borrow cues from their most popular concept
cars, which appear around the world at big auto shows.
GM researchers say young consumers are demanding dash-mounted PCs with cellular
Internet connections. To appeal to Generation Y, which is just now learning to drive,
the world's largest manufacturing company must perceive itself as a connectivity
provider--not than just an automaker.
" They told us they wanted in a car all the things they wanted to do at home, from
email and Web surfing to video games," said Carl
Zipfel, chief designer for the Terracross. At 33,
Zipfel was the oldest member of the Terracross
design team.
According to automotive marketing group J.D.
Power and Associates, 30 percent of consumers
say they are "interested in" on-board computers,
while 23 percent say they are interested in
passenger video games.
That pales in comparison to the number of
consumers who expressed interest in safety
features: 84 percent wanted run-tires and 80
percent wanted low tire pressure monitors. But the
number of technophilic drivers willing to pay extra
for on-board gadgets is rising sharply,
representing an important revenue stream for the
mature auto industry.
Although rigging automobiles to suit a wired population is a priority, the automakers
also hope to revolutionize their own operations through technology.
Each is experimenting with selling vehicles online, and GM is even letting its Brazilian
customers configure vehicles online--a process that cannot currently be imported to
the United States because of franchise laws that forbid manufacturers from selling
directly to consumers.
Covisint not connecting
G M, Ford Motor and DaimlerChrylser also announced early last year the formation of
Covisint, an online marketplace where automakers
and an estimated 30,000 suppliers can sell parts
and collaborate on projects.
Although auto executives insist they can wring
roughly $3,000 out of the cost of an average new
vehicle, the project has been beset by turmoil: Its
leaders cannot find a capable chief executive to
lead the venture, and it does not have a
permanent headquarters. And many analysts are
warning that, as the U.S. economy cools and
Internet businesses fall on tough times, the
automakers that are funding the venture might
scale back grandiose plans.
Despite the difficulties, it's clear that the auto
industry is eager to shed its Rustbelt reputation
and align itself more closely with the New Economy
than with the smokestack industries of the Old
Economy.
Ford Motor CEO Jacques Nasser told an audience of thousands of journalists and Ford
employees Sunday that e-commerce is an "imperative" for the automaker.
"We've started a variety--really a flurry--of e-business efforts," Nasser said to rapt
applause from Ford workers.
And, putting a new spin on the New Economy buzzword "bandwidth," Nasser said that
Ford is in a unique position to connect customers--be they patrons of Ford's upscale
Jaguar division, yuppie parents who drive Volvos, farmers who favor F150 pickups or
nostalgic aficionados of the redesigned Ford Thunderbird.
"We can leverage our significant brandwidth," Nasser said.
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