Stuart Taylor, Ford’s CEO of Enterprise Connectivity, talks to us about why a big data and cloud deal with Google makes sense and what it means for Ford buyers in the future.
Video transcription
SEANA SMITH: We want to bring in Stuart Taylor. He is Ford executive director, enterprise connectivity. And we also have a reporter and senior producer from Yahoo Finance, Pras Subramanian, participating in the conversation. Stuart, this is a great deal. It was mentioned several times last night on Google’s earnings call. This is a big shift for Ford, just in terms of strategy. But why does this partnership make sense?
STUART TAYLOR: Well, I think that’s of strategic importance to us. This is really a big deal. And thank you for acknowledging this. So we came together in this strategic relationship. We focus on Google’s cloud capability, their AIML experience. And then of course we also bring it to the side of the vehicle.
PRAS SUBRAMAANS: Hi, Stuart, Pras here. I’m just curious, you know, Google is a good partner and all, but Ford has so much information about its customers – wherever they go, billions of miles of information. Do you know why you give Google that kind – that data and also the kind of control and space in the car itself?
STUART TAYLOR: You know, it’s not necessarily about giving up or giving up the digital cabin, if you will, with Google. This is about – how do we use that data? The data is still from Ford, so let’s be really clear. And the customer is still sitting at Ford. It uses Google’s technical ability, depth and strength and expertise in this space to create better customer experiences for our customers. So it’s not about relinquishing control. It’s about working together to create new, unique experiences and capabilities in the vehicle.
ADAM SHAPIRO: Stuart, I do not know if you can see. Here I have a Studebaker poster by my side. I’m an old car nut. But I want you to know that. As you say, Ford advertised in the 60s helped put them out of action. If you’re talking about the data still being from Ford, I have to imagine – and it does not bother me when I get in my Ford, when I get in my old Ford 500 and drive to the Kroger a few times a week, so that the data can be aggregated and used to perhaps target ads to me. Is this a potential future? Or will it be contained within Ford?
STUART TAYLOR: So we do not necessarily look at or talk today about the kind of services and capabilities that we will offer with Google. But it is the ability to create new experiences, unique experiences that is very specific to Ford. And in fact, we are going to set up with Google this joint team called Team Up Shift, which is actually an idea, a brainstorm, where we can collaborate with their expertise and their knowledge in different Google technologies.
And then we can apply it to our customers in the vehicle. And so is the kind of ideas, the kind of collaboration between two very large and very capable enterprises, that are going to bring the distinction specifically to our customers.
PRAS SUBRAMAANS: Hi, Stuart, what do you say in terms of, is it really about AV, propulsion of autonomous vehicles and the kind of design? Is it – or is it about the software and Google’s cloud infrastructure?
STUART TAYLOR: Of course, today we are not talking about AV in this particular agreement. AV is very much a part of our roadmap and intentions as a Ford Motor Company. It’s really about using the Google Cloud for our current customers from calendar year ’23, using the depth and capabilities they have in their cloud, using their expertise around their technologies, and using it to give us what we need.
And so, I think, there is this long-term strategic view. Instead of just buying Android for Automotive or Google Automotive Services, it is this thought that within the strengths of our two companies there is the opportunity to co-create, specifically for the customers of Ford and Lincoln until tomorrow.
ADAM SHAPIRO: So I’m curious to go ahead, if you bring it to market, I think you will work with Google engineers to design the cabin in the car so that it’s not just software – friendly to me, the consumer, but also makes sense? I think the term is ergonomic, all this for Ford and the buyer.
STUART TAYLOR: When you think about the digital cabin and how much time you spend in the digital cabin, the experience is uniquely Ford or uniquely Lincoln. What brings Google to this agreement, of course, is the strength in voice control and its strength in navigation and then its app store. And in the app store we can create these experiences.
But if you are thinking about how things get together in the vehicle and then how you use the ecosystems, then you can transport these profiles from your home to your vehicle to your office, especially now in terms of using voice control. when we all come back to the office. And that’s the power of a partnership with someone like Google, if we can actually use it to our advantage.
SEANA SMITH: Stuart, customer retention is so important. How do you see an agreement like this that increases customer loyalty?
STUART TAYLOR: Improving customer loyalty – this is a really interesting question. I think from my perspective, when we focus and when I talk about Team Project Up Shift and Team Up Shift, it’s actually about creating experiences that are uniquely Ford or uniquely Lincoln. And that’s where the loyalty comes in. If we work with Google in this way, we will create these experiences together.
So we have the idea that together it is a renewal, an ability to become a unique Ford or Lincoln experience. So I’m really excited to get started with a lot of the Project Up Shift projects that we’ll be working on for the next six months to two years.
SEANA SMITH: Stuart Taylor, we really appreciate you taking the time. We hope to have you back, Ford’s Executive Director for Business Connectivity. And of course our thanks to Pras Subramanian for jumping with us.