Volvo CEO Jim Rowan has a different view on the software-defined vehicle. He says software is not the game changer, it's the silicon. Automakers will need to leverage the additional computational power embedded in future models to provide performance benefits as well as new services. One of those is insurance. Rowan outlined his vision in an interview with Automotive News Europe Managing Editor Douglas A. Bolduc.
How will the move toward offering software-defined vehicles affect Volvo?
The software-defined vehicle actually starts with firmware, which is basically the silicon. It doesn't start with software. You need to start with the silicon so that you know what the architecture is with the silicon and what the computational power is of the silicon. That way you know how you can use that to create the different attributes in the car and determine what type of performance you want in that car. You need to have some really good control over the software so you can take the high computational power that you're buying -- which is an expensive component -- and maximize the potential performance advantages you have and the services that you want to offer to the customer.