Why car companies are building stronger connections with tech startups

At this year's Connected Car Expo (CCE), which runs as part of the LA Auto Show from November 16, over 70 companies - from Volvo and Garmin to Qualcomm and Bosch - will be showcasing innovations that they believe will be the standard in-car features by 2020.

But this year's show will also be a platform for a number of tech start-ups that are approaching the connected car challenge from the opposite direction. They don't build cars, but they know how to build products and services that increasingly connected consumers want.

"We've put a large emphasis on startups this year at CCE because we value the importance of providing a platform where those companies can come together with automakers and suppliers to move our industry forward," said LA Auto Show and CCE President, Lisa Kaz. "This industry is fast evolving and we're committed to bringing ground-breaking news and products to our show floor."

To help bridge this divide, Nokia set up a $100 million fund to help these start-ups develop their ideas into products and several of these firms, including Prazo, a personal mobility concierge service will be at the CCE. "Entrepreneurs with unique solutions are helping to drive a lot of the new opportunities in the auto industry," said Prazo founder, Jon Alain Guzik.

The Web Summit in Dublin, Ireland, which concludes on Thursday is also a hotbed of connected car tech featuring both Ford and Audi as keynote speakers.

"The connected car brings opportunities for new innovative services. They will offer the customer more time and convenience," said Audi board member Dietmar Voggenreiter. "In this spirit, we at Audi are engaging in an exchange with creative minds, people who demonstrate the entrepreneurial courage to fundamentally rethink things afresh."

Ford also hosted a €75,000 competition aimed at encouraging the developer community to build apps for its infotainment systems. "Working with innovators from outside of the automotive industry is a proven way of generating ideas that can enhance the driving experience," said Don Butler, Ford executive director, Connected Vehicle and Services.

The winning app Drive Efficient, built by Unu, monitors engine revving and torque in order to offer verbal and visual pointers for better fuel efficiency.

"Ford Motor Company is tapping into talent like Unu that can generate truly innovative and disruptive ideas with the potential to be translated to reality," said Butler.