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Finally, the outlook for legacy automakers remains bleak, with continued discussions around tariffs affecting GM. Mary Barra, GM's CEO, has acknowledged a potential financial hit from these tariffs, which could reach $5 billion. Meanwhile, other tech giants like NVIDIA foresee a rapid rise in the adoption of robots and automated technologies.
The automotive industry is undergoing a profound transformation driven by software and AI, and legacy automakers who fail to write their own software may find it exceedingly difficult to stay relevant. As Farley emphasizes, embedding in-house software capabilities is critical for survival; however, many are finding that transforming decades-old business models and systems is easier said than done.