Car manufacturers of luxury cars shy away from Android Auto partially because they believe it turns one of their main selling points and silos (advanced technology) into yet another commodity.
> which requires minimal integration with the vehicle
My guess: maybe VW is scared of a potential "which CURRENTLY requires minimal integration with the vehicle" (I imagine that the push for more and more integration will increase in the future) and therefore decided to give it a try now and not to become passively dependent on Google.
BMW allows carplay with a monthly subscription to the rest of their services, largely because they believe that as long as you're getting the full benefit of a connected car, you'll be attached to the value - strategically, it makes no sense for them to give it away from free.
The other thing? These companies are starting to change their mind as consumers demand it as a feature.
Although to be honest, if not for the unconscionable amount of money they (or Navteq, I guess) asks for map updates, I'd be even happier just using the built-in navigation all the time.
But really be careful how much Android you're talking about. There are some brands really using Google's automotive services; this is not our strategy. When you do this, you get a great package of function and services, no doubt. But you also have to open up all the car's sensor data [to Google], and when I say all, it really is all sensor data," Senger told me.
(statement from Christian Senger, mentioned by Ars as being VW Group's Digital Car and Services division)