Western car companies are blowing a major opportunity. That’s the takeaway from a new report from consulting firm AlixPartners, which found that many traditional automakers are giving up control of their user experience to third-party companies. We already know that’s part of why they’re behind Chinese companies in the race to create compelling software-defined vehicles (SDVs). Now, though, we know what it means for the future of their businesses.

 

“The survey of 1,002 senior SDV executives (up to the CEO level) from automakers, Tier-1 auto suppliers and technology companies in North America, Europe, and Asia, found that Chinese automakers are the most focused on how they build and scale SDV capabilities while many Western automakers remain spread across legacy platforms, patched software stacks, and transitional architectures,” the report reads. “This leaves Western players at greater risk of dependency on outside partners at key SDV control points and makes it harder to capture full returns from their SDV investments.”