The Autonomy Ecosystem: The Value Chain (3 of 8) | Summary and Q&A

TL;DR

The shift to self-driving electric vehicles will completely transform the automotive value chain, leading to changes in car manufacturing, ownership, and driving experience.

Key Insights

• 🚙 The automotive value chain will shift from owning and operating gas vehicles to being driven around in electric vehicles by fleets, leading to significant changes.
• 😨 The car value chain will resemble the airline industry, with brand loyalty and safety becoming primary factors for choosing fleet operators.
• 😨 Car manufacturing will focus on safety, reliability, and battery life, with less emphasis on engineering features like the sound of closing doors.
• 👨‍💼 Specialized form factors for different tasks will emerge, such as single occupant cars, buses optimized for carrying stuff, and buses that operate like trains.
• 🖐️ Electronics and software will play a larger role in the automotive value chain, with companies like LG and DeepMap entering the market.

Transcript

we are at the very beginning of a profound shift that could happen a lot faster than any of us are expecting and that shift is from owning and operating our own gas burning vehicles to a world in which were driven around in electric vehicles by fleets now when that happens profound changes to the automotive value change will occur and I want to exp... Read More

Questions & Answers

Q: How will the shift to self-driving electric vehicles impact the automotive value chain?

The shift will lead to changes in car manufacturing, ownership, and driving experience. The value chain will resemble the airline industry, with brand loyalty and safety becoming important factors. The manufacturing focus will shift to safety, reliability, and battery life.

Q: What are some new form factors we can expect in cars of the future?

With self-driving electric vehicles, we can expect specialized form factors for different tasks, such as single occupant cars, buses optimized for carrying stuff, and buses that operate like trains. Cars may also transform into mobile offices or entertainment spaces.

Q: How will electronics and software play a bigger role in the automotive value chain?

Electronics and software will become increasingly important in car manufacturing, with projections suggesting that 50% of the total cost of manufacturing a car will go to electronics and software providers by 2030. Companies like LG and software providers like DeepMap are already entering the value chain.

Q: What are some key challenges and opportunities in the shift towards self-driving electric vehicles?

Key challenges include determining whether the software will be proprietary or open source, whether companies will be full-stack or modular, and who will dominate the future of fleet sales. This shift presents opportunities for safer and more affordable transportation options.

Summary

This video explores the profound shift from owning individual gas-burning vehicles to being driven around in electric vehicles by fleets. It discusses the changes that will occur in the automotive value chain, including the shift to a more loyalty-based decision-making process and the potential for new entrants in the market. It also delves into the types of cars that will be made, the new form factors that will emerge, and the increased importance of electronics and software in the industry.

Questions & Answers

Q: How could the automotive value chain shift with the rise of self-driving electric vehicles?

The value chain could become similar to the airline industry, where the primary loyalty is to a carrier rather than the type of aircraft. Brand loyalty, safety, proximity, and price would become the main factors in choosing a fleet operator. The make and model of the car would become less important.

Q: What changes can be expected in the types of cars produced?

The importance of certain features, such as the sound a door makes when closed, will diminish. Fleet operators will prioritize safety, reliability, and battery life. There will also be a proliferation of specialty form factor cars optimized for specific tasks and functions, including single-occupant cars, buses, and vehicles designed for carrying cargo.

Q: How might the interior of cars change in the future?

The car's interior will be transformed, with traditional elements like gas and brake pedals, steering wheels, and gearshifts being replaced by touchscreens, conference screens, swiveling chairs, and computer monitors. Ford has even filed patents for a touchscreen windshield entertainment system and a retractable conference table with an integrated airbag.

Q: What are some potential futuristic designs for cars?

One concept envisions cars joining together in a caravan on the freeway for increased efficiency and speed, and another proposes cars as mobile offices with conference rooms on wheels. Regardless of the specific designs, the amount of electronics and software in cars will significantly increase, making these areas increasingly important in the value chain.

Q: What role will software play in the future of self-driving cars?

Software will be crucial for self-driving cars and other advanced features. DeepMap, for example, creates highly detailed 3D maps of the world around the car, allowing cars to make safe driving decisions based on the rules and conventions of the road. There is a battle brewing to own the heart of the software for self-driving cars, with questions about proprietary vs. open source systems and full-stack vs. modular approaches.

Q: Who are the potential winners in the future of fleet sales?

The future of fleet sales is uncertain, with incumbents like Daimler, Volkswagen, Toyota, and Ford competing against startups from China and Silicon Valley. The battle for dominance in the industry will be fierce, but the ultimate beneficiaries will be consumers who have access to safer and more affordable ways of transportation.

Takeaways

The shift towards self-driving electric vehicles will have profound impacts on the automotive value chain. Consumers' decision-making process will prioritize brand loyalty, safety, and convenience over the make and model of the car. New form factors will emerge, including specialized cars for specific tasks and functions. The interior of cars will be transformed, featuring touchscreens, conference screens, and other innovative elements. Electronics and software will become increasingly important and influential in the value chain. There will be a battle among companies to own the software that drives self-driving cars, and the winners in the future fleet sales market remain uncertain. Overall, this shift promises safer and more affordable transportation options for everyone.

Summary & Key Takeaways

• Owning and operating our own gas vehicles will shift to being driven around in electric vehicles by fleets, resulting in significant changes to the automotive value chain.

• The car value chain will resemble the airline value chain, where brand loyalty, safety, and convenience become the primary factors for choosing a fleet operator rather than the make and model of the car.

• Car manufacturing will focus on safety, reliability, and battery life instead of engineering features like the sound the door makes when closed. There will be a variety of specialized form factors for different tasks.