Detroit’s Big Three fight to dominate the next generation of the car industry
Detroit’s Big Three automakers — General Motors, Ford, and Fiat Chrysler Automobiles — are vying to seize a leadership position in the next generation of the car industry, as the paradigm of car ownership shifts towards electrification and digital services. They’ve made big investments in autonomous and alternative-power vehicle development, as well as digital platforms like the GM Marketplace or FordPass that allow for customer engagement and vehicle subscription plans. Each company is also racing to deploy driverless vehicle fleets with commercial partnerships. To ensure the leadership in this space, these automakers are launching venture capital arms and investing in startups. GM stakes in Cruise, Lyft, and startup support organization Techstars, and Ford’s stakes in startups Nirenberg Neuroscience and Argo AI demonstrate the Big Three’s increasingly aggressive investment strategies. This significant investment in research, development, and acquisitions is representative of a larger shift towards new business models for addressing the needs of modern customers.