TO THE EDITOR:
Regarding Center for Automotive Research CEO Carla Bailo's comments ("Will Magna take a crack at Veoneer leftovers?" autonews.com, Oct. 8): Qualcomm has acquired the relevant Veoneer value. The balance of Veoneer assets will be of secondary, if not tertiary, importance for advanced driver-assistance and future fully autonomous vehicles.
Magna acquisition of Veoneer remnants, from the traditional automotive industry perspective, may appear to make sense. But Magna may consider guarding against becoming a victim of its own success.
The telecom and software industries have their Nortels and Cullinets, which became footnotes in history when their industries shifted. In automotive, semiconductor and software for telematics is on a collision course with consumer electronics mobile applications in the connected-car arena. The latter may inadvertently overdeliver the capabilities demanded of the former.
From the perspective of the greenfield electric vehicle industry, the Veoneer remnants may burden Magna with dependence on an outdated mobility model.
Magna might consider that consumer electronics manufacturers may be able to mass-produce EVs superior in quality and cost performance than the legacy OEMs.
General Motors or Toyota may be the "canary in the coal mine" striking conservative balances between today's consumer mobility demands and the prospects of future EV mobility. If those automakers are not in the mix for the Veoneer remnants, Magna may benefit from rigorous due diligence of their value.
The safe bet is on silicon software services. Keeping a "finger on the pulse" of GM or Toyota and Qualcomm is a prescription for highest gain and lowest risk.
STEWART SKOMRA, CEO, OmniQuest, Novi, Mich. OmniQuest develops design synthesis software for optimal automotive engineering.