Google, Renault Expands Partnership to Make Cars like Mobile Phones

Renault expands its partnership with Google in a bid to extend capabilities on remote software updates to Renault’s new car models such as the electric Austral and Megane E-Tech. Renault wants to make the car an intelligent object, that learns and can be upgraded over the air, like a mobile phone, said Luca de Meo, chief executive officer of Renault.

Automobile companies are struggling to catch up with the technological capabilities of Tesla Inc., including the ability to deliver updates to cars. The expansion of the partnership with Google, which started in 2018, will allow Renault to offer more software updates as well as add several on-demand services.

Luca de Meo said that the new in-vehicle digital features will create some additional revenue while increasing the residual value of Renault cars, and retaining customers. The new functions will include drivers being able to locate cars in large parking lots.

The product stays in connection with Renault for more than one ownership, said Luca de Meo. This partnership expansion with Google shows the horizontal strategy of Renault, which includes partnerships with software developers rather than designing the technology in-house.

Volkswagen AG has also delayed some important new models and  removed ex-chief executive officer Herbert Diess in July 2022 amid issues at the company’s software unit located in Cariad.