Tech companies a potential threat
Technology companies muscling in on the automotive industry should be considered a threat by traditional motor companies, according to financial services firm Morgan Stanley.
Speaking at an Automotive news conference, Morgan Stanley analyst Adam Jones warned that tech companies such as Google and Apple could form partnerships with automakers to gain knowledge, before ‘devouring’ them later on down the road.
He said the likes of Ford and Toyota should regard tech companies looking to enter the market as a threat rather than a growth opportunity.
He said, ‘They would use Ford as a host and devour them later. You’re talking about the end of human driving, the end of private ownership, the end of the internal-combustion engine and the end of car dealerships. Other than that, it’s business as usual.’
Ford is reported to be talking to Google about working together.
Mark Fields, Ford’s chief executive officer, said, ‘There’s all this talk about disruption. We’re disrupting ourselves. And we are looking at this from a position of strength today in terms of the financial health of our business and saying, ’How do we position the company for success in the future?’’