Tech companies, automakers are wary partners at Frankfurt show

A sense of impending disruption hangs over all the shiny new cars at this year's edition of the Frankfurt International Motor Show, Jsonline.com reports.

The potential impact of automated driving and of extensively "connected" cars has pushed aside electric and low-emission vehicles as the major theme in just the two years since the show was last held.

New technologies could lead to all sorts of innovations, such as real-time navigating around a slippery stretch of road and eliminating the need for a home garage by having cars drive themselves to people who summon them through a mobile app.

The big question among automakers is whether they will be the ones to provide new technologies — and profit from them — or will major tech companies like Google and Apple take a slice of the industry. For now,
the two sides are balancing cooperation against competition as they gauge what the future holds.

General Motors CEO Mary Barra succinctly expressed a common view, asserting that "we will see more change in the industry in the next five to 10 years than we have in the last 50."

Dieter Zetsche, the head of Daimler AG, described the car and technology companies as being "frenemies."

If Apple or Google starts making cars — something neither has said it intends to do — "then we are competitors."

Consultancy McKinsey found expectations of rapid change were widespread in the industry. In a survey of 91 industry executives for a report released Wednesday, it found 90% "believe that their organization's business model will change or broaden because of connectivity and autonomous driving."

The company also found that more car customers would be willing to switch brands for better connected services.