About this sample
About this sample
Words: 1206 |
7 min read
Published: Aug 4, 2023
Words: 1206|Pages: 3|7 min read
In today's society, public transportation and private vehicles are how people get from destination to destination. However, these vehicles, although essential in the present, are not preparing for the future of the automobile industry. They lack the fundamental benefits required for vehicles in the future. Therefore, the industry's future will be defined by the development of new and improved vehicles that can address the evolving needs of society as a whole.
To begin with, the auto industry’s future was forged by an economic crisis that began in 2007 that affected the global car industry, leaving multiple countries with billions of dollars in losses of revenue. These major losses in revenue resulted in car companies researching and discovering new ways to help better the industry. According to McKinsey & Company, “the Industry profits in 2012 (EUR 54 billion) were much higher than in 2007 (EUR 41 billion), the last crisis year” (Padhi, 3). This major increase in profits was accounted for by new research in reducing emissions for cars and the technology updates that were implemented. This crisis leads researchers to believe that “by 2020, global profits could increase by another EUR 25 billion, to EUR 79 billion” (Padhi, 5). While a dramatic decrease in profits for an entire industry usually results in companies defaulting or going under, the crisis that occured in the auto industry actually helped pave the way for the future and help raise the total revenue of an entire industry.
While the future of the automobile industry was helped forged by an economic crisis, federal regulators are forcing manufacturers to implement regulations on vehicles which in turn have also paved a way for the future of the car industry. With regulations being enforced to help reduce global warming and other environmental hazards, car companies have begun to create more fuel efficient vehicles that emit less greenhouse gasses. According to an Access Magazine article, “all vehicle classes and sizes have the same regulations which have helped reduce the carbon dioxide emissions per mile in half and for fuel economy, an average compact car today that gets 30 mpg will achieve about 51 mpg in 2025, and today’s 17-mpg-full-size pickup will achieve about 29 mpg in 2025” (Lutsey, 11). These statistics show that regulations are implemented to not only benefit the environment and help with fuel economy, but they are also there to help better the vehicles which in turn will lead to more revenue for the car industry in the future because customers are satisfied with their vehicle and the fuel efficiency that they get. While these regulations may be a burden to car manufacturers now, the regulations will help improve the environmental quality and lead to economic growth for the car industry in the future.
Furthermore, regulations are a start for the future of the automobile industry and lead to the creation of more electric cars. Electric cars will play a large role in the future of the auto industry and will lead to higher fuel economy and a better environment just like the regulations for cars. Benefits of the electric vehicles include charging your vehicle in seconds, having a larger range for how far the vehicle can travel without a recharge and consumers can aquire large tax incentives for owning an electric vehicle (Fisher, 10). These benefits help pave the way for the future because they can lead to more profits for car companies, better air quality and increased environmental standards. Also, the electric car will lead to the future of the automotive industry because there are efforts around the globe trying to put an outright ban on gas powered vehicles. This means that every large automaker will phase out their internal combustion engine vehicles and turn to electric vehicles in the near future (Williams, 9). Going electric will allow automakers to produce more vehicles that are safer for the environment and have higher incentives for the consumers.
As more and more electric cars are going to be produced in the future, the hydrogen car looks promising for the future of the automobile industry. The hydrogen cars are similar to the electric cars, where they are very beneficial for the environment and can help improve the overall air quality. Benefits of a hydrogen vehicle include that the hydrogen gas is made from renewable resources, the excess energy that is used in the braking system is reused for other purposes and also helps reduce the air pollution into the environment (Franklin-Wallis, 9). Having a car that is made of renewable resources and is environmentally friendly is key to the future and can help with the problems that the world faces today. Also, the hydrogen car “can travel more than 300 miles on a single tank and refuel in minutes ... whereas today’s EVs take several hours to charge” (Franklin-Wallis, 19). As hydrogen car companies will begin production in the next few years, these cars will help prepare the automotive industry for the upcoming future.
Besides the automobile industry going electric in the future, these changes cannot be made possible without new and improving technological advances in the vehicles. Undoubtedly, the software in the cars are what will lead the auto industry into the future, with technology like self-driving vehicles and lane control intel. Software in vehicles will be the future of the industry because it can provide intel that can improve regular commutes through automatic emergency braking, collision warning, autopilot in traffic jams, lane assist warnings and self-driving systems (BlackRock, 4). Also, the technological advances will help pave the way for the automotive industry through saving people lives. As stated in a report from BlackRock Investment Institute, [They] believe the development and adoption of [technology] may help avoid and minimize the impact of accidents and improve road safety — just as existing safety features such as seat belts and air bags have done” (BlackRock, 5). These features will allow the future of driving to be safer for everyone and allow people to become more aware of their surroundings out on the road.
To conclude, the automobile industry is preparing for the future through an economic crisis that made car companies work harder for the future. Also, companies are preparing for the future through new technological advances that can help save lives, by switching to electric and hydrogen vehicles that will help improve the environment and through stronger regulations. The vehicles of today that are getting people from place to place will be improved and will now allow for safer commutes and safer technology to help the drivers.
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