What does new and innovative technology emerging within the auto industry mean for Detroit?
Howes says that earlier this week the CEO of apple confirmed the company has interest in the automotive sector and autonomous vehicles.
“They think that this is the single space that’s most right for disruption,” Howes says. “Which is a phrase that oughta send shivers down the spines of anybody associated with the Detroit car companies.”
He discusses how the Detroit auto industry is being set up to compete with Silicon Valley for investor attention, talent, automotive engineers, and coders. The auto industry in transitioning into a world they do not know and that moves at a much faster pace, Howes says.
Wall Street has had a good relationship with Silicon Valley, Howes says, however the Detroit auto industry and Wall Street have not had the same relationship. This makes competition with Silicon Valley even harder for Detroit.
Howes says autonomous vehicles have the potential to change the entire model of car ownership and insurance. However, he adds that a key part of the situation will be the role that the federal government plays in allowing these changes. He says Michigan has been the fastest moving state thus far to allow autonomous testing on public roads.
Howes and Henderson also discuss the week’s news, including President Trump and his role in ongoing criminal investigations related to Russia.
Click on the audio player above to hear the full conversation.