The decade long research of Self-Driving Cars has not only put lot of investment and research on stake, but also the major industry analysts are unable to properly settle, whether the self driving cars would deteriorate the automotive industry or bring revolution.
The consumers have not reached the tipping point, where self-driving cars are all set to become an everyday technology. Even we’re on the course of enhancement of the various technologies, which still needs top level research and development.
All this is increasing the worries of the traditional auto manufacturers, who are working out very keenly on how to respond. With the recent announcement of Ford for tripling their fleet of self-driving test vehicles; Mercedes’ commencement of self-driving car and truck, and a sharing app; and BMW’s and Baidu’s recently road tested 3-series on an 18-mile drive in Beijing; it’s evident that these giant players are all set to enter the market.
However, the conventional auto makers, regardless of trying tough might not survive the generation of self-driving automobiles. The worst part about this is, throughout the technological disruptions there has been a critical shift in technologies, and it is always the new companies that evolve through this shift, and not the elder ones.
Now the question is, who would become biggest loser? It could be Europe, and Japan, since both of these regions accommodate the massive car industry, however have weak technology sector. The European countries are most likely to become losers due to the switch on self-driving cars, while the gainers would be Americas and Asian Countries.
Even though, massive amount of investment is getting sunk into the development of self-driving cars, it is difficult to admit that there won’t be any demand for them after perfect development. Yet again, the conventional auto makers are going to struggle.
Undoubtedly, this fear has waken them up and leading to huge investment in pedaling themselves parallel with the technology. It seems that they’re not at all in a mood to allow Apple and the rest of the Silicon Valley companies consume their meal without any effort. They will definitely keep some benefits on their side.
The United States is home to various auto giants, however they’re not as big as they used to be. Also the country has several factories, which are involved in the assembling of German and Japanese cars, along with having a tremendous technology industry.
On the contrary, Europe doesn’t have anything, which can strengthen the technology that the U.S. has, and if the region is on a course of development of a significant competitor, then it would be a British or Scandinavian firm.
Europe already faces a lengthening list of economic challenges, from a dysfunctional currency union, to aging populations, to high taxes and rigid labor markets that keep unemployment at far higher levels than necessary. But just because things are bad does not mean that they can’t get worse.
The self-driving car is likely to become yet another issue for the European economy, and most importantly for Germany.