Software is king.
Now that smart cars can evade road obstacles, display 3-D maps and respond to voice commands, the software and electronics hardware for these features can cost more than a vehicle's raw metal.
According to an estimate by IHS Automotive, the price tag for a vehicle's software can range from $350 to $1,050.
The electronics hardware -- that is, the computer chips, displays and user controls that put this software to use -- can add another $2,000 to $6,000 to a vehicle's cost, says Egil Juliussen, a researcher for IHS Automotive.
"Software is the major factor, and in some cases the deciding factor" in an automaker's decision to buy a particular component, Juliussen said.
As suppliers beef up their software development, the hunt for software talent has taken on the urgency of a gold rush.
"Software expertise is in short supply in any industry, and certainly in the auto industry," Juliussen said. "That's why suppliers are opening up research centers in Silicon Valley -- it's easier to attract talent."
To cope with the software engineer shortage, suppliers such as Visteon Corp. are turning to unconventional sources -- such as the movie and video game industries -- to recruit people such as Kyle Entsminger.