Naysayer Sees Peril in Carmaker Alliance with Tech Companies

Carmakers would be wise to consider tech companies such as Google Inc. as lethal threats rather than partners for sustained growth, warns Morgan Stanley analyst Adam Jonas, Bloomberg News reports.

Jonas contends that carmakers are too focused on selling vehicles that are used for only 3% of the day. He tells Bloomberg manufacturers should be looking for ways to generate revenue from the time people spend in their vehicle, which is exactly what tech companies are doing.

Apple, Google and others don’t really care about carmaking, Jonas argues. He says their real interest in partnering with carmakers is to find ways to sell drivers in-car hardware, features, data and entertainment services.

Once they achieve that result, Jonas warns, they will “devour” their automotive partners.