This analysis discusses issues in an article that describes the automobile industry. According to the article, the automobile industry is a great beneficiary of technology growth. Modern car manufacturers are more aware of environmental changes caused by carbon emissions from fossil fuels. Daimler is a company that is facing three concrete issues that reinvent mobility in the modern world. According to the article, there is need to strike a balance between economic growth and environmental protection. Reinventing mobility entails participating in environmental conservation and promoting economies by manufacturing electric vehicles, autonomous cars and integrating ridesharing technology in the automobile industry.
Issue 1: Electric Vehicles
Electric Vehicles (EVs) have been recommended for most economies as a means of reducing carbon emissions. EVs make use of electric energy to move from one location to another. This form of technology has been initiated in France as agreed in a recent Paris Climate Accord. Electric vehicles are expensive to manufacture hence attract high prices for ordinary people to purchase. According to the article, manufacturing EVs would enable Daimler remain relevant in most automobile markets. The world is fighting against climatic changes that result from global warming. Carbon emissions from diesel fuels need to be reduced to avoid adverse conditions of climatic changes.
Daimler is objective in identifying EVs as a strategic move in the automobile market. In future, manufacturing of automobiles will depend on electric technology features and functionalities. Modern EVs measure engine power on the amount of electric charge and the distance covered. Since the technology is at its initial phases, Daimler is aware that future manufacturing of EVs will depend on distance and energy. Electric vehicles will also transform many economies which depend on fossil fuels for energy needs. For instance, stations for charging EVs will replace traditional gas stations and Daimler notes this service will increase revenue generation levels.
EVs are expected to promote clean energy production in most economies. Daimler notes that car manufacturing plants use diesel fuels to produce vehicles. Initiating and sustaining environmental change, through adopting and implementing clean energy, would improve the organizational image of any car manufacturers. Daimler needs to address EVs by using renewable sources of energy such as wind and geothermal sources. Adoption of clean energy would enhance Daimler desire’s to set progressive precedence in the automobile industry. Production of EVs is expected to improve the adoption of clean energy to reduce carbon emissions to minute levels. The business context of manufacturing EVs, according to the article, will define the production of vehicle units in the future.
Issue 2: Autonomous Vehicles
The article also discusses the market relevance of autonomous vehicles in the automotive industry. Autonomous vehicles have the capacity to move from one location to another without a driver. Also known as “driverless cars”, autonomous vehicles can sense its surrounding. Data acquired from the environment is used to give directions to the vehicle. Daimler acknowledges that autonomous vehicles will determine key success factors of the automotive industry in the future. Automobile firms will have to produce cars that use electric energy to achieve environmental conservation objectives. Autonomous vehicles will only be relevant in the automotive market if they move on electric charge.
The article notes that autonomous vehicles will reinvent mobility in different ways. For instance, Daimler acknowledges that autonomous vehicles will reduce the rate of accidents in busy highways. Most countries suffer from high mortality rates due to ignorance and negligence among drivers. Both developed and developing countries experience high death rates during festive seasons due to ignorant driving. Daimler notes that autonomous vehicles would reduce accidents by a huge number. Protection against fatal accidents is a market element that plays a key role in the purchasing decision of a consumer. Traffic is another element that autonomous vehicles can influence.
Reinventing mobility through the production of autonomous vehicles will improve public transport in the motor industry. According to the article, autonomous vehicles are expected to influence the transport sector of most economies. Accidents are recorded include public vehicles which ferry people across long distances. The ability to reduce the rate of accidents and control traffic will make autonomous vehicles a target for most clients. Institutions like schools are also expected to promote autonomous vehicles to avoid loss of lives among children. Most governments are also expected to encourage the use of autonomous vehicles through commercial policies and regulations. Daimler identifies that manufacturing autonomous vehicles increase production cost due to high and expensive technology.
Issue 3: Ridesharing Technology
Ridesharing technology is a key success factor of the automotive industry as it determines market demand in thriving economies. For instance, Uber is considered the largest LPO across the US in the transport sector. The company attributes its market success to the access to affordable vehicles. According to the article, Uber has generated positive financial revenues continuously since its adoption in 2009. Daimler acknowledges that the ridesharing technology will improve in the future. Car manufacturers are expected to identify units of vehicles that meet the objectives of ridesharing companies. Vehicle producers will have to manufacture small units of vehicles that provide transport services conveniently. Maintaining a competitive edge will require Daimler to identify investment opportunities in the ridesharing market. According to the article, ridesharing technology has revolutionized public transport in most economies.
Ridesharing technology has provided numerous jobs to many people across the globe. According to the case, Uber has employed over 16,000 drivers who operate in different economies. This indicates that the demand for vehicles is growing with respect to new technology invention. Consequently, Daimler should identify investment opportunities that would increase the demand for vehicles. The article notes that technology is expected to improve the transport sector of most economies if technology-based vehicles have appealing functionalities. For instance, most users of taxi services will prefer autonomous vehicles if rates of accidents increase dynamically. According to the case, autonomous taxis would be profitable to Daimler in terms of car sales and high market demand.
Electric vehicles would reduce carbon emissions by significant volumes. A 2019 SOS report acknowledged that carbon emissions from vehicles that use diesel contribute to the death of plants and animals. The ecosystem is facing extinction as more and more species of insects die due to high record temperatures arising from global warming. Autonomous vehicles have also played a key role in transforming the automobile industry. Transport logistics indicate that autonomous vehicles have the capacity to reduce road accidents that arise from driving negligence. Road accidents form part of the leading causes of high mortality rates in most economies. Daimler is also expected to respond to technology integration as a means of reinventing mobility. Ridesharing technology has capitalized on connectivity to provide transport services. Daimler acknowledges that automobile markets need to integrate ridesharing technology to remain relevant in the business.