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Google shows off their new advancements on the road....
The American automotive industry isn't as resistant to innovation as it once was. But Detroit's big three automakers have their cost structures to deal with, their reputations to think about, and (lately) their profits to protect. So anything too risky is going to be a hard sell.

It doesn't get much more risky than a technology that would turn cars into robots and end driving as we know it.

It's no wonder, then, that Google and Detroit haven't found much common ground in their early discussions about self-driving car collaborations, as Reuters' Alexei
Oreskovich and Ben Klayman reported Monday:

In one meeting, both sides were enthusiastic about the futuristic technology, yet it soon became clear that they would not be working together. The Internet search company and the automaker disagreed on almost every point, from car capabilities and time needed to get it to market to extent of collaboration. It was as if the two were "talking a different language," recalls one person who was present.
Clayton Christensen's shopworn theory has its limitations, but it's not a bad lens through which to view the sort of bind in which Google's self-driving car technology could place companies like Ford, GM, and Chrysler. Unlike classic examples of disruptive technologies, self-driving cars are likely to be more expensive than human-driven versions, at least initially. But the long-term vision of the self-driving car involves moving from an ownership model to a service model, in which large numbers of people simply call cars whenever they want them. One Google patent even suggests that retailers could offer potential customers a free ride to their store in exchange for bombarding them with ads. That implies an existential threat to Detroit's entire business model, from production to marketing to distribution and sales.
If Detroit automakers were certain that this were the future, they would have little choice but to begin preparing, even at great cost to their existing businesses. If your platform is burning, it's better to jump ship than go down with it. The catch is that it's far too early to tell whether Google's radical vision of a driverless society will catch on. It would be rash, bordering on suicidal, for a company like Ford to invest heavily in fully driverless technology today only to see the market—or regulators—reject it tomorrow.

Instead, the automakers are looking to Google and other tech companies for incremental improvements to their existing products, like in-car technology, crash-avoidance systems, or automated parallel parking.

But Google has become increasingly convinced that such half-measures are a poor substitute for fully autonomous driving technology. The more you're forced to rely on the human behind the wheel, the fewer benefits you derive from self-driving software. Only when every car is automated will a crash-free (not to mention hands-free) world be possible.

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