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posted by CoolHand on Thursday May 21 2015, @03:44PM   Printer-friendly
from the want-to-ride-it-all-night-long dept.

Barclays PLC analyst Brian Johnson predicts that U.S. automobile sales will drop 40% within the next 25 years due to disruption caused by driverless technology, and that vehicle ownership rates will be cut in half as families move to having just one car:

Large-volume automakers "would need to shrink dramatically to survive," Johnson wrote. "GM and Ford would need to reduce North American production by up to 68 percent and 58 percent, respectively."

Self-driving cars have become a frequent topic for auto executives as the technology for the vehicles emerges. The market for autonomous technology will grow to $42 billion by 2025 and self-driving cars may account for a quarter of global auto sales by 2035, according to Boston Consulting Group. By 2017, partially autonomous vehicles will become available in "large numbers," the firm said in a report in April.

Johnson's report, entitled "Disruptive Mobility," contends that the shift to cars that drive themselves will upend the auto industry. "While extreme, a historical precedent exists," Johnson wrote. "Horses once filled the many roles that cars fill today, but as the automobile came along, the population of horses dropped sharply."

"By removing the driver from the equation (the largest cost in a taxi ride), the average cost per mile to the consumer could be 44 cents for a private ride in a standard sedan and 8 cents for a shared ride in a two-seater," Johnson wrote, noting that would be "well below" the $3 to $3.50 a mile consumers now pay to ride in an UberX car or the $1 to $1.50 a mile for an UberPool vehicle.

 
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  • (Score: -1, Troll) by Anonymous Coward on Thursday May 21 2015, @05:44PM

    by Anonymous Coward on Thursday May 21 2015, @05:44PM (#186120)

    You country folk need to get your act together... or to put it in inflamatory terms: UncleDaddy told me and SisterMommy that we should all move to the big city

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  • (Score: 2) by morgauxo on Thursday May 28 2015, @02:11PM

    by morgauxo (2082) on Thursday May 28 2015, @02:11PM (#189084)

    LOL, sure, whatever. There are almost 300,000 people in my city by the way. It still isn't the kind of place you would want to live without your own car. It's only the largest of cities that are like that but they seem to be a very vocal minority.