Cars and Drivers
A New Forecast That Cars Are Going Away
Published:
Last Updated:
With the dawn of the self-driving cars and ride-sharing services, many experts have said that sales of traditional sedans, coupes, crossovers, sport utility vehicles and pickups will plunge. This would gut revenue at the world’s largest car companies, including U.S.-based manufacturers GM and Ford. An industry leader recently made comments to support the theory that mainstream cars will disappear, and the warning is starker than most.
According to Automotive News:
As sharing services change car use and ownership, Toyota Motor Corp.’s new design chief believes that vehicles will shift towards either generic boxes on wheels for everyday use or ultra-luxury cars, wiping out the need for mass-market models.
Simon Humphries, responsible for design at the automaker’s Toyota and Lexus brands, said that fleets of electric, self-driving shuttle bus-like vehicles could one day eliminate the need for people to drive themselves around on a daily basis.
What is left unsaid is that the largest car companies can make the new vehicles, but the numbers will never be more than modest. Demand for traditional vehicles, made by the millions each year, will never return. Car plants will be idled and the people who work in them laid off. The white-collar employees who operate the manufacturers will become less and less necessary as well.
Where will this leave the publicly traded car companies? Presumably with dwindling revenue and more difficulty keeping their bottom lines. Companies like Toyota Motor Corp. (NYSE: TM) will shrink to the size of BMW or smaller. BMW’s sales run about 2.4 million a year. Toyota’s are 10 million. An even more pessimistic number is based on Porsche’s global sales, which number about 230,000.
The “generic boxes on wheels” may help large car companies keep some volume. But these will be inexpensive, which means margins will be hard to come by.
It may well be that the future of the car industry is grim and getting grimmer.
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
