General Motors it카지노 게임 컬렉션™s shuttering five production facilities and killing six vehicle platforms by the end of 2019 as it reallocates resources towards self-driving technologies and electric vehicles.

The announcements should come as a surprise to no one, as they echo a similar announcement made by Ford earlier this year that it will exit within two years.

Why the sudden attitude adjustment toward cars? Well, both firms cite a focus on trucks, SUVs and crossovers. OK, sure 카지노 게임 컬렉션” that카지노 게임 컬렉션™s what more people are buying when they buy a vehicle today. But there is a broader and more long-term element to this discussion.

Have we reached Peak Car?

Many may remember the dialogue associated with , or the idea that we had reached or would soon reach the peak production levels of oil around the globe.

Such forecasts and predictions were likely related to price run-ups on commodity and investment strategies in the oil industry. However, new exploration discoveries and extraction technologies ultimately mean we are a long way from running out of oil. While we may still hit peak production in the near future, it is more likely due to a decreasing need as society moves to alternative energy sources.

But what about cars? North American car production hit 17.5 million vehicles in 2016, and dropped marginally to . Interesting, but perhaps not significant.

More telling are changes in driver behaviour. In North America, for example, fewer teens are getting driver카지노 게임 컬렉션™s licences. In 1983, 92 per cent of teens were licensed, while by 2014, that number had dropped to 77 per cent. In Germany, the number of new licences issued to drivers aged 17 to 25 has dropped by 300,000 over .

The future is driverless

Factor in ride-sharing services like Uber and Lyft, the comprehensive cost of vehicle ownership and more effective public transportation (everywhere but Canada) and we get a sense of some of the reasons for these evolving automotive strategies.

Most significant, however, is the evolution of self-driving technology. Picture this scenario:

Julie is an ER doctor at the local hospital, on the 7 a.m. to 3 p.m. shift. She jumps in the family car at 6:30 a.m. and is at the hospital by 6:50 a.m.

After dropping Julie off, the car then heads home, arriving in time to take Julie카지노 게임 컬렉션™s two children to their high school; one of them tosses their hockey equipment in the back of the car. The car then returns home to take Julie카지노 게임 컬렉션™s husband to the law office where he starts work at 9 a.m.

The car then swings by the school to take Julie카지노 게임 컬렉션™s daughter to hockey practice at 2:30 p.m., and then returns to the hospital to pick Julie up. And so on.The technology to support the scenario above exists now, and will result in reduced car ownership through a more economical and efficient approach to managing cars, whether accessed through independent household ownership or fleet membership.

As it is today, a family like Julie카지노 게임 컬렉션™s would need two or possibly three vehicles, and those vehicles would largely sit still most of the day. Tomorrow, the family could be down to one vehicle, possibly an SUV for the hockey gear. What happens when families or groups of people further pool their assets for more ride-sharing or increased capacity?

Fewer cars on the road within a decade

We are moving from a do-it-yourself (DIY) transportation economy to a sharing or . Many of us won카지노 게임 컬렉션™t like it 카지노 게임 컬렉션” I honestly like to drive 카지노 게임 컬렉션” but the numbers and the technology are there.

As safety technologies improve and societal paradigms shift, this evolution will gather momentum. Based on the young driver statistics above, it seems reasonable to anticipate a reduction in cars per capita of 20 to 30 per cent in the next decade.

Unions at GM and Ford are justifiably unhappy, but they shouldn카지노 게임 컬렉션™t be surprised. It is quite possible that we have reached Peak Car in North America and Europe.

Companies that want to succeed in this new environment will need to be different, and especially better in some way. If car volumes drop by 30 per cent over the next 10 years, there better be something special about the car company that hopes to survive, let alone prosper 카지노 게임 컬렉션” like better technology, better comfort or better service.

If current trends continue, we can anticipate more shutdown announcements 카지노 게임 컬렉션” like GM카지노 게임 컬렉션™s 카지노 게임 컬렉션” from car companies and parts suppliers, as there won카지노 게임 컬렉션™t be room for all of them.

______________________________________

 is an assistant professor in the Smith School of Business at  He is an expert and thought leader in innovation, execution and operations strategy. 

The Conversation provides news and views from the academic and research community. Queen카지노 게임 컬렉션™s 카지노게임사이트 is a founding partner. Queen카지노 게임 컬렉션™s researchers, faculty, and students are regular contributors. 

The Conversation is seeking new academic contributors. Researchers wishing to write articles should contact Melinda Knox, Associate Director, Research Profile and Initiatives, at knoxm@muwangwooden.com. 

This article is republished from under a Creative Commons license. Read the .