Why Ford is teaming up with Google in a big way

Stuart Taylor, Ford's Executive Director of Enterprise Connectivity, talks to us about why a big data and cloud deal with Google makes sense, and what that means for Ford buyers in the future.

Video Transcript

SEANA SMITH: We want to bring in Stuart Taylor. He is Ford executive director, enterprise connectivity. And we also have Yahoo Finance reporter and senior producer, Pras Subramanian, joining the conversation. Stuart, this is a huge deal. It was mentioned a couple of times on Google's earnings call last night. It's a big shift for Ford, just in terms of the strategy. But why does this partnership make sense?

STUART TAYLOR: Well, I think it's of strategic importance to us. It is a really big deal. And thanks for acknowledging that. So we've come together in this strategic relationship. We're focusing on Google's cloud capability, their AIML experience. And then we're bringing to that, obviously, our vehicle side capabilities as well.

PRAS SUBRAMANIAN: Hey, Stuart, Pras here. I'm just kind of curious, you know, Google is a great partner and everything, but Ford has so much data on its customers-- where they go, billions of miles worth of information. You know, why give Google that kind of like-- that data and also that kind of control and space in the car itself?

STUART TAYLOR: You know, this is not necessarily about giving up control or giving or ceding the digital cockpit, if you like, with Google. This is more about-- is how do we actually use that data. The data is still Ford's, so let's be really clear on that. And the customer still sits with Ford. This is utilizing Google's technical capability, the depth, and their strength and expertise in this space to actually make better customer experiences for our customers. And so, this is not about ceding control. This is about working together to create new, unique experiences and capabilities in the vehicle.

ADAM SHAPIRO: Stuart, I don't know if you can see. I've got a Studebaker poster right off to my side here. I'm an old car nut. But I do want you to know. As you say, Ford advertising back in the '60s helped put them out of business. When you talk about the data is still Ford's, I've got to imagine, though-- and it doesn't bother me if I get in my Ford, if I get in my old Ford 500, and I drive over to the Kroger a couple times a week, that that data might be aggregated and be used to perhaps target advertising to me. Is that a potential future? Or is this going to be contained within Ford?

STUART TAYLOR: So we're not necessarily looking at or talking today about the kind of services and capabilities that we're going to be offering with Google. But this-- the ability to create new experiences, unique experiences that are very specific to Ford is what this is all about. And in fact to that end, what we're doing with Google is we're going to set up this joint team that's called Team Up Shift, which is really an ideation, a think tank, where we can work together with their expertise and their breadth of knowledge across multiple Google technologies.

And we can then apply those for our customers in the vehicle. And so that kind of ideation, that kind of working together across two very large and very capable companies, is what's going to bring that differentiation to our customers specifically.

PRAS SUBRAMANIAN: Hey, Stuart, what do you say in terms of, is this deal really about AV, Autonomous Vehicle sort of propulsion and that kind of design? Is that-- or it's about the software and Google's Cloud infrastructure powering that?

STUART TAYLOR: We're not talking about AV in this particular deal today, obviously. AV is very much part of our roadmap and intentions as Ford Motor Company. This is really about using the Google Cloud for our current customers starting in calendar year '23, using the depth and the capabilities that they have in their cloud, using some of their expertise around their technologies, and leveraging that to give us what we need.

And so, I think there is this long-term strategic view. Rather than just buying Android for Automotive or Google Automotive Services, it's this thought that within the strengths of our two companies, there is opportunity for co-creation, specifically for the customers of Ford and Lincoln to tomorrow.

ADAM SHAPIRO: So I am curious, going forward, as you bring this to market I guess, will you work with Google engineers to design the cockpit within the car so that it's not only software friendly for me, the consumer, but actually makes sense? I think the term's ergonomic, all of that, for Ford and the buyer.

STUART TAYLOR: If you think about the digital cockpit and how much time you spend in that digital cockpit, that experience is uniquely Ford or uniquely Lincoln. What Google brings to this deal, obviously, is the strength in voice control and its strength in navigation and then its app store. And the app store is where we can create these experiences.

But if you think about how those things come together in the vehicle and then how you use those ecosystems, the roll in, particularly now in terms of using voice control, you can now carry those profiles from your home to your vehicle to your office, when we all get back to the office. And that is the power of partnering with somebody like Google, is we can actually use that to our advantage.

SEANA SMITH: Stuart, customer retention is so important. How do you see a deal like this enhancing customer loyalty?

STUART TAYLOR: Enhancing customer loyalty-- that's a really interesting question. I think from my perspective, when we focus in and when I talked about Team Project Up Shift and Team Up Shift, that's really about creating those experiences that are uniquely Ford or uniquely Lincoln. And that is where the loyalty comes in. When we actually partner with Google like this, we're going to create those experiences together.

So we've got this idea that, together, an innovation, a capability, they will become a uniquely Ford or Lincoln experience, is what builds that loyalty over time. So I'm actually really excited to get started on a lot of those Project Up Shift projects that we're going to be working on over 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 of enterprise connectivity. And of course, our thanks to Pras Subramanian for jumping on with us as well.