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Toyota (TM) to Rev Up Software Game With New Operating Platform
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Per Nikkei, Toyota Motor (TM - Free Report) plans to develop and launch its own automotive software platform by 2025. This new comprehensive operating system, Arene, will be capable of handling everything, from basic functions to advanced applications like autonomous driving.
Arene will power basic components like the steering wheel, brakes and accelerator and manage safety systems as well as location and traffic information. Irrespective of the make or model, all vehicles integrated with Arene will have access to shared functions. Consumers can update the system online, which will result in enhanced performance.
Arene will be open to other developers and companies from outside the industry so that they can participate in creating new applications for autonomous driving and other functions. Toyota aspires to make Arene a more efficient platform as more users and developers join, generating more data that can be used to develop new services.
Toyota plans to integrate Arene in its vehicles by 2025, post which the software will be made available to its affiliates, including brands like Subaru and other manufacturers as well as startups working on electric or autonomous vehicles. The company will make the software available to others through a licensing model.
Of late, the competition to enhance the value of vehicles has been shifting from hardware to the software controlling it. In fact, software is playing a crucial role in vehicles, from managing electric motors and batteries to supporting functions such as autonomous driving, entertainment and navigation.
With the rollout of the Arene operating system, the Japan automaker will rev up its software game. It will also pose intense competition to other auto giants as well as tech companies by setting the standards high in relation to developing in-house software that will power the next generation of vehicles.
With this, Toyota will follow the footsteps of automakers that have already decided to take all the software development in-house. For instance, Toyota faces fierce rivalry in this field from Volkswagen, which is working on its "vw.os" operating system.
Toyota will also boost the hiring of software specialists to 40-50% from 20% previously. Though the company has not revealed how much investment will be made in the software development, the automaker seems geared to take its software game a notch higher.
A few other stocks in the auto space that investors can consider are Fox Factory Holdings (FOXF - Free Report) , Genuine Parts (GPC - Free Report) and LKQ Corporation (LKQ - Free Report) , all of which carry a Zacks Rank of 2 (Buy) currently.
Fox Factory has an expected earnings growth rate of 23.33% for the fourth quarter of 2021. The Zacks Consensus Estimate for its fourth-quarter 2021 earnings has been revised downward by 2 cents in the past 60 days.
Fox Factory’s earnings beat the Zacks Consensus Estimate in the last four quarters. FOXF has a trailing four-quarter earnings surprise of 15.85%, on average. FOXF has surged 52% in the past year.
Genuine Parts has an expected earnings growth rate of 10.53% for the fourth quarter of 2021. The Zacks Consensus Estimate for its fourth-quarter 2021 earnings has been revised upward by 4 cents in the past 60 days.
Genuine Parts’ earnings beat the Zacks Consensus Estimate in the last four quarters. GPC has a trailing four-quarter earnings surprise of 15.97%, on average. GPC has surged 38.8% in the past year.
LKQ Corp has an expected earnings growth rate of 18.84% for fourth-quarter 2021. The Zacks Consensus Estimate for its fourth-quarter 2021 earnings has been revised downward by 4 cents in the last 60 days.
LKQ Corp’s earnings beat the Zacks Consensus Estimate in the last four quarters. LKQ has a trailing four-quarter earnings surprise of 34.37%, on average. LKQ has rallied 66.5% in the past year.
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Toyota (TM) to Rev Up Software Game With New Operating Platform
Per Nikkei, Toyota Motor (TM - Free Report) plans to develop and launch its own automotive software platform by 2025. This new comprehensive operating system, Arene, will be capable of handling everything, from basic functions to advanced applications like autonomous driving.
Arene will power basic components like the steering wheel, brakes and accelerator and manage safety systems as well as location and traffic information. Irrespective of the make or model, all vehicles integrated with Arene will have access to shared functions. Consumers can update the system online, which will result in enhanced performance.
Arene will be open to other developers and companies from outside the industry so that they can participate in creating new applications for autonomous driving and other functions. Toyota aspires to make Arene a more efficient platform as more users and developers join, generating more data that can be used to develop new services.
Toyota plans to integrate Arene in its vehicles by 2025, post which the software will be made available to its affiliates, including brands like Subaru and other manufacturers as well as startups working on electric or autonomous vehicles. The company will make the software available to others through a licensing model.
Of late, the competition to enhance the value of vehicles has been shifting from hardware to the software controlling it. In fact, software is playing a crucial role in vehicles, from managing electric motors and batteries to supporting functions such as autonomous driving, entertainment and navigation.
With the rollout of the Arene operating system, the Japan automaker will rev up its software game. It will also pose intense competition to other auto giants as well as tech companies by setting the standards high in relation to developing in-house software that will power the next generation of vehicles.
With this, Toyota will follow the footsteps of automakers that have already decided to take all the software development in-house. For instance, Toyota faces fierce rivalry in this field from Volkswagen, which is working on its "vw.os" operating system.
Toyota will also boost the hiring of software specialists to 40-50% from 20% previously. Though the company has not revealed how much investment will be made in the software development, the automaker seems geared to take its software game a notch higher.
Zacks Rank & Other Key Picks
Toyota currently flaunts a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
A few other stocks in the auto space that investors can consider are Fox Factory Holdings (FOXF - Free Report) , Genuine Parts (GPC - Free Report) and LKQ Corporation (LKQ - Free Report) , all of which carry a Zacks Rank of 2 (Buy) currently.
Fox Factory has an expected earnings growth rate of 23.33% for the fourth quarter of 2021. The Zacks Consensus Estimate for its fourth-quarter 2021 earnings has been revised downward by 2 cents in the past 60 days.
Fox Factory’s earnings beat the Zacks Consensus Estimate in the last four quarters. FOXF has a trailing four-quarter earnings surprise of 15.85%, on average. FOXF has surged 52% in the past year.
Genuine Parts has an expected earnings growth rate of 10.53% for the fourth quarter of 2021. The Zacks Consensus Estimate for its fourth-quarter 2021 earnings has been revised upward by 4 cents in the past 60 days.
Genuine Parts’ earnings beat the Zacks Consensus Estimate in the last four quarters. GPC has a trailing four-quarter earnings surprise of 15.97%, on average. GPC has surged 38.8% in the past year.
LKQ Corp has an expected earnings growth rate of 18.84% for fourth-quarter 2021. The Zacks Consensus Estimate for its fourth-quarter 2021 earnings has been revised downward by 4 cents in the last 60 days.
LKQ Corp’s earnings beat the Zacks Consensus Estimate in the last four quarters. LKQ has a trailing four-quarter earnings surprise of 34.37%, on average. LKQ has rallied 66.5% in the past year.