The Automotive Industry is currently experiencing many technological changes
Outline which changes you consider to be particularly significant and discuss how those changes might impact upon the industry in the future.
The automotive industry is compiled of many different stakeholders; vehicle manufacturers, car companies, investors, buyers, passengers and drivers but to name a few. The automotive industry is not unlike any other industry in that it is experiencing the technological changes that are abundantly clear in today’s modern world. Considering that only a few years ago there were no such thing as anti-break locking systems (ABS) or electric mirrors, it’s clear to see how advanced the technology has come. Between electric motors, autonomous cars and the new car-sharing trend, technology is changing the automotive industry for good. However, with all of these improvements come some drawbacks. People may lose their jobs if it is decided that machines could perform their job better. These concepts will be discussed in the following essay.
Motor vehicles have come a long way from tiring cranking levers and awkward timing stalks. Today’s car is that of a luxurious automobile, filled to the brim with new technologies; Bluetooth connections, voice recognition, sensory alarms and dashboard cameras but to name a few of the recent developments. The speed of innovation has not only been quick, but rather costly too. Due to “ubiquitous electronics, a variety of digital services, and novel powertrains” (Parkin, Wilk, Hirsh, Singh, 2017) automobiles in the 21st century are more expensive now than ever, which is leading to a steep increase in the cost of production of such cars. This is due to the fact that the physical parts used to manufacture the vehicles are becoming increasingly costly since the technology is rapidly becoming more advanced. The overall cost is at a 20% rise compared to past generations (Parkin et al, 2017.) Many companies will be unable to keep up with these changes, which may lead to their business going away completely (Parkin et al, 2017). Many traditional manufacturers are under pressure to reduce costs anyway, never mind the fact that they have to include this innovative technology into their systems too. Each producer in the automotive industry will have to evaluate whether or not they can keep up with the ever-growing developments of the cars of the future.
When researching “cars of the future” two terms are overwhelmingly used throughout the findings; shared and autonomous. PWC expect there to be four types of cars in the near future: 1) unshared and not autonomous, 2) shared but not autonomous, 3) unshared but autonomous, 4) shared and autonomous (PWC Report, 2017). It is believed that autonomous vehicles will lead to have a “strong, positive impact on sharing concepts”. Car sharing occurs when you do not have ownership over one particular car. Instead, the market place/ a company/ an organisation can facilitate you with a car for your particular journey (Future of Car Sharing website). On average, a car is only used for one hour every day, so many consumers would save a colossal amount of money on insurance, tax, and fuel. It has been shown that the users of car-sharing facilities actually have a high level of education to their name. Judging by a study done in Colorado, 35% of car-share users have a Bachelor’s degree, and a further 48% had some post-graduate work or an advanced degree (Millard-Ball, Murray, Schure, Fox, 2005). Most of the members taking part in the survey were concerned about environmental changes and social issues too (Millard-Ball et al). It is clear that car-sharing is of interest to many people and a concept that many environmentally-conscious people are passionate about. Many stakeholders in automotive industry will have to consider this growing trend and investigate whether or not their company could provide it, and ultimately, make a profit. Newer companies or even entrepreneurs may consider entering the automotive industry in this way. With social and economic changes occurring
rapidly in the world, and the population on whole becoming more environmentally conscious, there would be no surprise if car-sharing was the only option available in the future!
Autonomous vehicles are connected almost hand-in hand with car sharing, as mentioned previously. Numerous cities worldwide have already begun performing trial runs of such “self-driven” vehicles: in Singapore, there have been autonomous bus and taxi trials taking place around the One-North Business Zone and in Helsinki, it is planned for there to be autonomous shuttle buses to schools in certain areas (Lang, Rubmann, Chua, Doubara, 2017). PWC theorised in a recent paper that due to the inventible conjunction of self-driving and autonomous vehicles that by 2020, inventory could drop to over 200 million vehicles, where “27 million automobiles will be responsible for over 40% of personal mileage” (Kuhnert, Sturmer, Koster, 2018). It is believed that mileage will increaser per person NuTonomy is a technology company that has developed a prototype for the new autonomous taxis “using a package that consists of software programmes for navigating urban environments, routing and managing vehicle fleets, and operating vehicles by remote control” (Lang et al, 2017). Self-driving vehicles require no human intervention, even in the most difficult of situations (Kuhnert, Sturmer, Koster, 2018). Autonomous vehicles are made in many shapes and sizes. There will be autonomous taxis, shuttle buses, and even private cars, each being powered electrically, as to lessen the carbon footprint left on the planet. As with everything, there are possible negative effects of such technology. It doesn’t bare thinking about what could happen if there was a fault in the car and it caused a number of accidents on the road. Manufacturers must ensure that the autonomous automobiles are in perfect condition, ready to be sold to eager drivers.
It is becoming increasingly popular to own an electric car in today’s world. Many people believe that electric cars have only recently been created but in fact, the electric car can be traced back to the 1800’s when Robert Anderson, a British inventor, created such a concept. His crude electric carriage was a monumental invention which lends itself to the development of the practical electric car, developed in the 20th century (Department of Energy, 2014). The electric car was quiet, easy to use, and possessed over 30% of the automotive industry. (Department of Energy, 2014). However, the electric car became almost extinct when Henry Ford took to the stage and developed the Model T; a gasoline powered car that was considerably cheaper than the electric car (Department of Energy, 2014). In the blink of an eye, the electric car became something seen on a rare occasion. Fast forward to 2018 where one can see that the electric car is on the rise again. Due to climate change and the incremental cost of petrol over the years (Automobile Association Development report), there is a lot of time and money being invested into battery-powered technologies like the electric car, in order to combat these issues (Kley, Lerch, Dallinger, 2011). There has been “considerable progress made due to mass production in other sectors” and this technology is now being applied to electric cars (Kley et al, 2011). This use of technology to compensate the global push is changing the motor industry drastically. In a recent study performed by the University of Sussex, it was revealed that many consumers developed a “feel good factor” after testing out electric cars and believed they were doing something good for the environment. Sales of electric cars rose 63% globally from 2015 to 2017 (Bloomberg New Energy Finance). By 2025, it is believed that one in six cars will be electric. Some companies in the automotive industry have already started to adapt, for example; BMW, Chevrolet and Volkswagen. Volvo have taken it a step further, and have announced that from 2019 onwards, they will only be selling battery powered cars. The demand for electric cars is increasing, bur the technology required to meet such demands will lead to increased costs for any companies that have decide to take on the challenge. It has been revealed that Chevrolet’s Bolt EV costs about $28,000 to
manufacture (GreenNews.ie, 2017) which is a considerably high price compared to the production cost of a petrol powered vehicle. For some car companies, these production costs may not be feasible. Electric vehicles have already started changing the automotive industry, and are certain to continue to do so in the future. F 34 34R WE ERW
One issue that is associated with the advancement of technology is the concern that these machines that are performing the manufacturing or engineering are going to result in less jobs for humans. In Britain, it is predicted that four million jobs in the private sector alone will be replaced by robots in the next decade (thersa.org). The driverless cars are improving in decision making, accuracy and safety as the years go on, but what could that mean for taxi drivers? Considering the fact that autonomous cars and car-sharing may end up occurring simultaneously, this could potentially mean that the taxi drivers in the automobile industry could lose their jobs completely. If the future entails a world full of electric cars, will that mean petrol/ diesel stations will become extinct? Since there will be charging ports all along the roadside, there simply may not be enough demand for gas powered cars anymore. Not only may the workers on the road be effected, but a vast amount of factory workers may be out of a job if technology can do their job better, and cheaper. According to Acieta, an industrial automation business, robots are the best option for a vehicle-producing factory. Robots don’t suffer fatigue or get distracted, so each cycle time is the same, meaning it’s guaranteed that a set number of units will be produced each day (Aceita website). Along with that, robots will not be susceptible to certain injuries that can occur when performing repetitive tasks, like musculoskeletal disorder (Aceita website).
It goes without saying that the automotive industry will experience even more technological changes in years to come. The days of “cutting out” or “breaking harshly” may soon become a thing of the past. It is certain that all members of the automotive industry will be effected in some manner, whether it be a good or bad result. I personally believe that the technology is something to embrace and not to fear. Where one job is lost, another may be created in engineering, programming, or even customer service. The numerous academic articles prove that the technological change is rapid and inevitable. In my opinion, each stakeholder should attempt to embrace the technological changes that occur within the industry. If not, I predict that companies will simply be left behind, and thus, out of business.
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