Name: Insights: Here’s How the Auto Industry Is Driving Itself Into the Future
Uploaded: 2020-03-11
Duration: 4 min 1 s
Description: Discussing ride-sharing, ride subscriptions, and autonomous vehicles with auto titans at Fortune’s Brainstorm Reinvent conference. (September 2018)

 [MUSIC PLAYING] ATIF RAFIQ: We've actually said that by 2025, we want 50% of the cars that we move, the cars that we make, to be available to get subscriptions. So we've been out there very publicly. The subscription is basically trying to make a car work like a phone. So if you said, hey, you know, I love the iPhone. I'm in, and every two years, just give me a new one. I don't want to have to think about, "do I own this thing?" What's the residual value? Is the asset depreciating? You know, how do I get rid of it, then I get a fair price? Just make a new one show up because I want to-- I just want to stay current. So that's why we're kind of really bullish on this idea of subscription, really taking that kind of question marks out for the customer, if that makes sense. And by the way, I think that that really blurs the model between ownership and sharing if you will. And I'm-- we can talk a little bit more about that. But let me come to the question you actually asked around, the "what do you do inside the car?" So two weeks ago, we had an event where we basically showed the interior of a car, where the car was driving itself. So the question was, what do you do inside the car? And we made-- we have come up with a design that makes the car more like a living room or a bedroom, quite frankly. So you have a bed. You can sleep. You have a fridge, and you have a place where you can be entertained or be productive, for example, with your work. RACHEL BHATTACHARYA: When we think about this, I mean, we look at what happens when you do share a vehicle. Right? So a lot of studies out there, but if you think roughly 10 cars taken off the road for each one that's shared. So that's a big part of it. And then as we think about-- and we were talking offline earlier just partnering with the city. Right? So you don't want to think of this as coming in and asking for forgiveness. It's more of a come in, and partner, and think about, "can we amplify transit?" Can we understand where some of the other city constituents might need as an example, charging infrastructure? And can we think about working with them on how do we amplify some of that with bringing as, an example, you know EVs in a high mileage application, where we can guarantee some demand for that and help derisk risk some of those business models ahead of time. So that public goods like electrical infrastructure, can come a little bit faster than they otherwise would. And so for us it's as much about that, again, that ecosystem view that we all talk about of approaching this more holistically as a systems integrator, which is I think what our OEMs are used to doing, as opposed to coming in with one piece of this little system and trying to just quote that. Right? So it's much more of that ecosystem play. JEN WIECZNER: There's some concern that, you know, if cars become too comfortable, and you don't actually need to have your hands on the steering wheel-- you could be asleep in the car for example-- that it's going to increase traffic because people won't be taking public transportation. They'll just be riding around. Sunny, I know you're working with cities to explore of different types. Can you talk about if that happens, what the implications are for traffic or how you solve that? SUNNY MADRA: Yeah, so you know, one of the things that we're trying to do with our transportation mobility cloud is basically, bring all different modes of transportation. So that one, from a city perspective, they can leverage the data that comes out of it to basically help understand how to route around those kind of things and also, provide rules and some guidelines in the vehicles. So you know, you think about the future where there's autonomous vehicles. It makes sense for a vehicle to potentially take a certain route if it has a passenger in it, but take a different route if it's empty. Right? And how does it reposition itself? So there's a lot of work that has to happen, not only with vehicles, but then integrating that with other modes. We were talking about that earlier, right? It may be efficient for you to drive or take your vehicle, you know, in the-- lying in your bed from your house to the train station, and then get on the train as Rahm said. Take the train in, and then get on a scooter or a bike for that last mile to your office. So I think you have to think of mobility across multiple modes in the future. We're starting to see that, especially with this urbanization happening, because we're not going to really be able make more roads. We're going to have to get more efficient and bring other modes into the cities. [INSTRUMENTAL MUSIC]

Insights: Here’s How the Auto Industry Is Driving Itself Into the Future

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Discussing ride-sharing and ride subscriptions.

The Auto Industry Is Driving Itself Into the Future

Discussing ride-sharing, ride subscriptions, and autonomous vehicles with auto titans at Fortune’s Brainstorm Reinvent conference. (September 2018)

2025 1 50% of the cars that we moved the cars that we make to be available the subscription. So we've been out there very publicly. The subscription is basically trying to make a car work like a phone. So if he said, Hey, you know I love the iPhone in and every two years just give me a new one I don't want to have to think about, you know, Do I own this thing with the residual value? Is that appreciating? How do I get rid of it? You know, they get a fair price. Just make a new one show up because I want I just want to stay current. So that's why we're kind of really bullish on this idea of subscription. Really. Taking that kind of question marks out for the customer. If that makes sense. And by the way, I think that that really blurs the model between ownership hearing, if you will, we can talk. We can talk a little bit more about that, but let me come to the question you actually asked around the you know what you do inside a car. Two weeks ago, Way had an event where we basically showed the interior of a car where the car was driving itself. So the question was, What do you do inside the car? And we made We have come up with a design that make the car more like a living room or a bedroom, Quite frankly. So. You have a bad you can sleep. You have you have afraid and you have a place where you could be entertained or be productive on, for example, with your work. When we think about this and we look at what happens when you do share a vehicle, right? So a lot of studies out there. But if you think roughly 10 cars taken off the road for each one that shared, so that's a big part of it. And then, as we think about when we were talking offline earlier, just partnering with a city, right? So you don't want to think of this as coming in and, you know, asking for forgiveness. It's more of a come in and partner and think about. Can we amplify transit? Can we understand where some of the other city constituents might need is an example charging infrastructure and can we think about working with him on How do we amplify some of that with bringing as an example? You know, evey is in a high mileage application where weaken guarantee on demand for that unhealthy risk some of those business models ahead of time so that public goods, like electrical infrastructure, can come a little bit faster than they otherwise would. And so for us, it's as much about that again, an ecosystem view that we all talk about of approaching this more holistically as a systems integrator, which is, I think, what our Liam are used to doing as opposed to coming in with you. No one piece of this little system and trying to just go with that. It's much more of that ecosystem play. There's some concern that, you know cars become too comfortable and you don't actually need to have your hands on the steering wheel. You could be asleep in the car, for example, that it's going thio increase traffic because you know people won't be taking public transportation will just be riding around. Sonny. I know you're working with cities to explore different can you talk about, You know, if that happens, what what the implications are for traffic or how you felt that. Yeah, so you know, one of things that we're trying to do with our transportation mobility cloud is basically bring all different modes of transportation so that no one from a city perspective, they can leverage the data that comes out of it to basically help understand how to route around those kind of things and also provide rules and guidelines. The vehicles, you know, you think about a future where there's autonomous vehicles. It makes sense for a vehicle to potentially take a certain route if it has a passenger in it to take a different route, if it's empty right, and how does it reposition itself? So there's a lot of work that has to happen not only with vehicles, but then integrating that with other modes. We were talking about that earlier, right? It may be efficient for you to drive or take your vehicle lying in your bed, too, from your house to the train station and then get on the train. As Ron said, Take the train in and then get on a scooter or a bike for that last mile to your office so I think you have to think of, you know, mobility across multiple modes in the future. We're starting to see that, especially with urbanization happening because we're not gonna really make more roads. We're gonna have to get more efficient and bring other modes and into the city.