Issue Mobility: software capability decides who survives

Summary

This issue argues that software skills, not engines, will determine which carmakers survive. As cars become software platforms, established manufacturers face a shortage of the right human capabilities. By 2028 vehicles are expected to move from more than 100 separate controllers to three to five powerful computers, each managing one physical zone of the car, which requires software engineering talent most makers lack. One electric vehicle maker's fleet can already be fully updated over the air, compared with 35% for European manufacturers and 15% for Detroit. EY expects winners to be those that control the customer experience, earn money from data and deliver autonomous features. Because legacy firms cannot build software-native organizations quickly enough on their own, they will need acquisitions or partnerships, or they risk ending up as contract manufacturers.