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Mobility-driven future will mean more sales

January 17, 2019 Article 1 min read
Authors:
Daron Gifford
Despite the narrative that driverless cars and ride-sharing services will put automakers out of business, increased use will lead to shorter vehicle life cycles and more frequent replacement — good news for the industry’s future. Read more in Automotive News.

High energy city 

Self-driving vehicles and ride-sharing services are going to upend the idea of traditional vehicle ownership, they say, leading to fewer people owning cars, which will result in a massive drop in overall vehicle sales.

Their arguments are buttressed, they believe, every time a major automaker announces plant closures and layoffs as a result of a planned pivot toward these new technologies — investments made with no real timetable for a payoff.

And people whose job it is to sell cars are in for an even ruder awakening, or so this line of thinking goes. The number of car dealerships would crater in this scenario, dropping, some predict, by as much as 50 percent by 2025.

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