The automobile industry is undergoing huge transformation simultaneously engendered by forces within and outside its sphere. The pace of alterations in designs change is on the crescendo as cars become the primary recipients of technological innovations.
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| Image source: fastcompany.net |
Unlike in the past, automobiles are now ruled by software that allows high-tech operation and entertainment such as backup sensors and assisted parking. There are programs that enhance driving skills or make more efficient routine maintenance. Software is applied to examine tire pressure, in backup cameras, audio and infotainment purposes as well as collision warning systems. Thus, semiconductors become crucial in car development as these are important in running more sophisticated levels of software.
Meanwhile, new entrants into the automaking business are sources of internal pressures for shifts in automobile designs. Google is into launching a driverless car through its Google Chauffeur program. A prototype proved lesser unfavorable incidents. The company is into on-road trials and plan to have the stable models commercially produced two years hence. Tesla is having a significant impact for having sold and delivered 67,000 electric vehicles (EVs) since its introduction in the market. EVs are predicted to be potential competitive edge for a manufacturing firm in the coming years, the reasons perhaps why Nissan and General Motors are broadening their EV development to gain market advantage.
The prevailing trend in car sharing also casts influential effects on automobile manufacturing. Ride-sharing companies, such as Uber and Lyft, cause intensive growth in utilization of personal vehicles. However, the continuous success of car sharing schemes could spell the downfall in auto sales figures. In an attempt to counterbalance this bleak future, Ford (F) is testing a car-sharing service, GoDrive, wherein the manufacturer has a participative role. Other attempts are being modeled by BMW’s DriveNow and Daimler’s (DDAIF) “car2go black” programs.
Regulations likewise compel innovation in the automobile industry. The rise to 54.5 miles per gallon by 2025 of the government fuel efficiency standard, a further hike in 2016 figures obliged companies to enhance the fuel efficiency of their models. One is through the usage of lighter weight materials such as aluminum to replace the heavier steel. Other strategies include more aerodynamic designs and smaller engine sizes.
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| Image source: justfitbox.com |
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