Auto Industry Insights You Should Know
Posted: Aug 22, 2019
There are many trends that are affecting the automotive industry and its role in the coming decades. On the forefront, the biggest shakeup is the transition into all-electric vehicles. Many large manufacturers are still hanging onto combustion engines. After all-electric models become standard, we will see another transformation as fully autonomous vehicles take over the roads. And what will the impact of all these major transportation changes mean for other industries of the world? Let's find out by reading about these topics in greater detail below.
#1: All-Electric Vehicles
Ford and many other major automakers have been slow to retool their factories for the production of all-electric vehicles. They have admitted that the failure to keep up with the Tesla trend is all economics. If they are losing thousands of dollars on each vehicle by trading out the combustion engine, then it doesn't make financial sense.
Since these companies are under pressure to produce high quarterly profits for their stockholders, the transition has been slow. However, in the next few years, GM, Ford, and many others plan on eliminating their combustion models. This may be in part to European emissions regulations that seek to do away with the combustion engine altogether.
#2: Automated Vehicles
Although there were many promises made that we'd have fully automated vehicles by 2020, the reality is not yet there. Automation can help to increase efficiency and to reduce accidents. But it will have to be developed in phases. There are already fatalities linked to the use of autonomous driving. Several Tesla owners have put their vehicles into a semi-automated mode while sitting in the passenger's seat. These driver crashes have stained the image of autonomous driving and reliance on radar sensors and GPS for mobility.
Anyone who uses a GPS app to drive their vehicle manually knows how unreliable these maps can be. Solving all these technological glitches and having the safety net of backups to keep occupants safe is still in development. But once automated cars come out onto the market, driving will be stress-free but dull. Of course, taking the best crossover SUV out for the first time may kick in some adrenaline as you wonder about whether it will stop or maneuver properly. But once the safety is proven, the thrill will diminish.
#3: Electricity as the New Auto Fuel
Driving a combustion engine is still very convenient and affordable for many Americans. Thanks to the uptick in homeland energy production, gas prices are at an all-time low since the recession.
The fracking industry and the reductions of environmental regulations are coming with a price, however. At the back end of it, these vehicles are still contributing to global warming, which is believed to be the cause of the jet stream slowing down. As a result, Europe experienced record heat over the summer of 2019. In addition, many of the energy plants powering electric vehicles still run on dirty coal and produce more greenhouse gases than automobiles individually could.
This means that we are not yet making any ground on the environmental front. Although the potential is there, we have yet to cross the threshold into reducing our pollution. Fracking is also taking a toll on the environments where it occurs. These areas are experiencing earthquakes and contamination of groundwater, among other problems.
The automotive industry is undergoing a major metamorphosis. Its reliance on Lithium batteries and automation will affect many other industries. We can only wait and see how everything plays out. They have already improved upon the Lithium-ion battery, which may open up the door to days or weeks of traveling without a charge.
Damien Justus writes in the business, home improvement and real estate spaces, and is very passionate about health, cooking, diet plans and anything that has to do with staying fit.