Ford Says Self Driving Is The Next Model T CarBuzz
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Ford Ford Ford Ford Ford sees much of that revenue coming from ADAS, and like Tesla before it, thinks that means big bucks. "When I see the pricing power for ADAS, not just at Tesla, but all of us… it feels like that's the first shippable software that we could send to a car that customers are really willing to pay a lot of money for," said Farley. "We're about to change the ride just like Apple and all the smartphone companies changed the call. And I believe, when that happens - when you can ship a lot of software to the car and you have great sensors [and you can] really change that experience and be a lot more productive - there will be a large revenue expansion. " Farley also highlighted the consumer benefits of advanced driver-assist tech. He said, "If we can get people to fall asleep in their car, give them 45 minutes back on their commute, they can go to work 45 minutes later, they can go home 45 minutes earlier." CarBuzz CarBuzz CarBuzz Ford It all sounds nice, but self-driving that's advanced enough for drivers to sleep is a big step from where most systems are now. Farley says that as long as there's a real productivity benefit for the consumer, Ford will see that paid back in revenue. If you make technology that's usable and trustworthy, people will pay for it. However, consumers could be hesitant regarding the payment side of things. Farley's speech appeared to suggest a subscription model for these systems, which historically hasn't gone down well for brands. People don't like paying additional subscription fees for a physical object they already own. We saw that when Toyota tried to add remote-start as a subscription, and earlier when BMW tried to make CarPlay a subscription. Frankly, that's how it ought to be. Consumers should own 100% of the cars they buy, with no exceptions. Ford Ford Cadillac CarBuzz
Ford Says Self-Driving Is The Next Model T
Jun. 13, 2022 6:51 AM ET by Chase Bierenkoven Industry News / 1 Comment Jim Farley says he sees massive revenue gains in self-driving. "Well, I believe, like I said in the video, I think this is the biggest, most exciting kind of land grab of revenue in our industry since the Model T. I really believe that. And the reason is because, think about it - we used to use our phones to make a call and then the embedded systems got put in place and the sensor set, and all that software allowed those devices to not be used just for calls." Ford CEO Jim Farley had this to say about Ford's new plans for its autonomous driving software at the 2022 Alliance Bernstein Strategic Decisions Conference. The CEO believes that the company can make a ton of money off BlueCruise and ActiveGlide (Lincoln's version of BlueCruise). Advanced Driver-Assistance System (ADAS) software like this is becoming more and more prevalent in models like the Ford Mustang Mach E, and Farley sees it as a huge financial opportunity. Ford says it expects connected driver services like BlueCruise will bring in roughly $20 billion in revenue yearly by 2030, with another $45 billion coming from Ford's new Pro commercial arm by 2025.Ford Ford Ford Ford Ford sees much of that revenue coming from ADAS, and like Tesla before it, thinks that means big bucks. "When I see the pricing power for ADAS, not just at Tesla, but all of us… it feels like that's the first shippable software that we could send to a car that customers are really willing to pay a lot of money for," said Farley. "We're about to change the ride just like Apple and all the smartphone companies changed the call. And I believe, when that happens - when you can ship a lot of software to the car and you have great sensors [and you can] really change that experience and be a lot more productive - there will be a large revenue expansion. " Farley also highlighted the consumer benefits of advanced driver-assist tech. He said, "If we can get people to fall asleep in their car, give them 45 minutes back on their commute, they can go to work 45 minutes later, they can go home 45 minutes earlier." CarBuzz CarBuzz CarBuzz Ford It all sounds nice, but self-driving that's advanced enough for drivers to sleep is a big step from where most systems are now. Farley says that as long as there's a real productivity benefit for the consumer, Ford will see that paid back in revenue. If you make technology that's usable and trustworthy, people will pay for it. However, consumers could be hesitant regarding the payment side of things. Farley's speech appeared to suggest a subscription model for these systems, which historically hasn't gone down well for brands. People don't like paying additional subscription fees for a physical object they already own. We saw that when Toyota tried to add remote-start as a subscription, and earlier when BMW tried to make CarPlay a subscription. Frankly, that's how it ought to be. Consumers should own 100% of the cars they buy, with no exceptions. Ford Ford Cadillac CarBuzz