New Alliance Aims To Change Auto Technology With ‘Connected Car’

A new auto industry alliance that debuted this week at the TU Automotive Conference in Detroit is seeking to create and deliver a “connected car” within two to three years that fundamentally changes the driving experience, a top executive with AutoLabs.com told Talk Business & Politics.

“When driving a car, we just are not connected,” said Juha Christensen, CEO of Menlo, Calif.-based CloudMade and a member of the newly-created AutoLabs alliance. “There needs to be a generation shift in car buying and automotive technology.”

Christensen said AutoLabs was founded by seven startup and hi-tech companies in Silicon Valley and Europe that are looking to take advantage of the profound “millennial” demographic shift that will change the nature of the automotive industry in a few years.

The CloudMade exec made reference to a recent research and interactive online portal created by Wall Street investment giant Goldman Sachs to offer financial data and economic insight on the 92 million Americans born between 1980 and 2000 now coming of age.

“Much like the Baby Boomers changed the world and set the pace for generations after, today’s Millennials are having a similar effect on society,” Christensen said.

The Silicon Valley startup executive said the alliance’s founding members, Cogniance, CloudMade, Nebula Systems, Parkopedia, Pieker, Navmii and Pelagicore, joined forces to provide automotive solutions that are design-driven, cloud-oriented, and millennial-focused. Each company in the alliance offers a unique, cloud-based technology that automaker’s can easily adapt for new models now in production.

“Our software solutions speak perfectly to the group’s mission of providing design-driven connected car experiences that appeal to Millennials. Auto manufacturers need to address this highly influential demographic or they will lose them to new, digitally driven competitors,” he said. “The members of The AutoLabs have the solutions right now to address this need and we are delighted to be a part of the initiative.”

The group unveiled their AutoLabs website on Wednesday at the TU Automotive in Detroit, which is billed as the world’s largest conference & exhibition dedicated to automotive technology. This year, promotor’s said there were 150, speakers, 200 booths and 3,000 registered attendees at the two-day conference that ends today.

The CloudMade chief executive told Talk Business & Politics that the alliance has approached a long list of automakers and suppliers, known as original equipment manufacturers (OEMs), and provided them with solutions that are slowly being adapted in new car models.

Over the next few years, he said, the alliance will operate labs across the world, fostering partnerships between auto manufacturers and technology companies. The initial labs, now located in Silicon Valley and Stuttgart, Germany, will offer co-working spaces, networking events, and conferences to create opportunities for interaction and innovation.

“Right now, we have two labs, but our goal is to have 20 or 30 in the next year,” Christensen said during a phone interview from the Detroit automotive tech show.

By partnering with the members of alliance, Christensen said, auto manufacturers can move from being product-centric brands into “digitally native,” with profitable services and solutions that transform their offerings.

For instance, alliance member Nebula Systems develops vehicle data analytics platforms that empower car owners to know more about their vehicle’s health before a mechanical issue happens.

Parkopedia, based in the United Kingdom, provides detailed information on over 28 million parking spaces in 40 countries around the world, allowing drivers to find the closest parking to their destination, telling them how much it will cost, and whether the space is available.

Christensen’s company, CloudMade, offers cloud-based predictive learning and location-based systems and car and driver analytics software to help automakers better understand vehicle performance and connect with customers at a deeper level to improve efficiency and brand loyalty.

“In just basically two or three weeks, we have technology that is able to predict people’s driving habits and then build a driver profile that will dramatically increase driver safety,” he said. “And it is highly personal. Two drivers of the same car can have a totally different driving experience once they get behind the wheel.”

Most of the companies in the alliance are established tech companies or proven startups with strong venture capital backing. For instance, CloudMade is backed by 83North, Sunstone Capital and Intel Capital, all highly- recognized Silicon Valley venture capital funds.

Steve Haney, spokesman for the AutoLabs alliance and VP of Marketing at Cogniance, said the new venture will be funded by fees and corporate sponsorships. The alliance is launching its inaugural PR and social media campaign with the hashtag #GetMillennial over the next few months.

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