Automakers Will Shape the Future City (Again)
Starting in the late 1930s and continuing through the 1940s, when most Americans’ attention was occupied by war, a General Motors-backed company called National City Lines took over a controlling interest in streetcar operations in cities across the U.S. Many of these transit systems were subsequently converted to bus services, or discontinued altogether.
The owners of National City Lines (including GM, Firestone Tire, and Standard Oil of California) were eventually convicted of conspiring to monopolize the sale of buses to NCL-controlled transit systems. Whether or not the intent was to kill electrified public transit, the story is an early example of automakers’ ability and desire to shape our transit infrastructure. The decades that followed featured road building that has defined transportation in America through to the present day.
Recent trends favoring city living and the convenience of ride hailing suggest a potential drop in car ownership rates. Tech companies and personal-transit platforms like Uber and Lyft have accelerated the development of autonomous vehicles and seem best positioned to take advantage of this personal-mobility-as-a-service outcome. But there are signs that traditional automakers will once again have their say.
Manufacturers like GM, Daimler, and Volkswagen are partnering with companies involved in various aspects of AV development, and the pace of this crossover is accelerating. There is GM’s well-publicized $500 million investment in Lyft, but also numerous other partnerships matching manufacturers with large tech firms, navigation technologies, and research institutions. There are even signs that automakers may be willing to accept a fundamentally different business model, successfully employed by ride-hailing companies and possibly made more lucrative by AV technology. Daimler Chairman Dieter Zetche:
“We see the car transforming from a product into the ultimate platform.” (VentureBeat)
If one assumes that ubiquitous AV transport will require significant changes to urban infrastructure, then it seems likely that some of the same companies that enabled suburban sprawl will play prominently in how next-generation cities are designed. Maybe local and regional governments can be better prepared this time around.
References:
Why Big Auto Still Has A Chance To Shape The Driverless Future. (2016, July 13). Retrieved November 12, 2016, from https://www.cbinsights.com/blog/big-auto-corporates-autonomous-car-opportunity/
Automakers partner to compete against Apple and Google for autonomous car services. (2016, September 29). Retrieved November 12, 2016, from http://venturebeat.com/2016/09/29/automakers-partner-to-compete-against-apple-and-google-for-autonomous-car-services/
