Samsung makes an $8 billion bet on cars

Samsung last week entered the car business with an $8 billion investment in the audio company Harman, which makes the JBL and Harman Kardon brands of equipment. The move – Samsung’s biggest deal ever – puts the company squarely in the ever-competitive world of connected vehicles and continues a trend of blurring the lines between technology and the auto industry.

As cars continue to incorporate more and more technology, they also represent an enormous business opportunity for companies like Samsung that want to cash in on passengers who want more in-car entertainment and communication services. With the acquisition of Harman, Samsung gets a well-known and respected auto supplier that represents part of a market that is projected to reach $7.8 trillion by 2030.

Harman is mostly known for its audio technology but also has a connected-car division that spans a broad range of industries that is appealing to Samsung. For example, Harman markets technology to carmakers that allows them to gather customers’ driving data for safety and insurance purposes.

With Harman, Samsung is expected to extend its is reach into an area that it has, until now, merely probed. The move also reveals that Samsung may be looking to develop corporate relationships with companies like major automakers. The deal should be finalized by mid-2017.

(Source: www.washingtonpost.com)

Let us know! How do you think cars will change in the future in terms of technology?

 

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