Four Risks Facing The Automotive Industry

The automotive industry has been through some massive changes in recent years, as the demand for cars soars, and the technology within them progresses at a fast pace. This progression has also presented some challenges for car manufacturers. There are some real risks facing the automotive industry that manufacturers will need to respond to. Stay informed about these risks with information from sites like Industry Forum.

Self Driving Cars

Self-driving cars have been in development for a while, with manufacturers like Tesla leading the charge. While the technology is still being developed, many people are beginning to be concerned about the effects this change could have. 

There are still safety concerns around the self-drive technology, and many worry that these cars could lead to more accidents. In testing, a self-driving Uber struck and killed a pedestrian, leading to more fears. 

There’s also a concern for insurance providers, as self-driving cars will transform the entire transport system, changing the way people drive, and the risks involved. 

Tariffs

Trade disagreements with China are already impacting the automotive industry, and further problems could make this worse. 

Higher tariffs on aluminium and steel, both usually bought from China, can add a large amount of money to the cost of building a new car. This then means that car prices will rise too, with exports declining. Despite this affects, tariffs don’t seem to be going away. 

If problems continue, we could see tariffs added to imported vehicles and parts for cars, costing the consumer even more, causing sales to drop. 

Ride Sharing And Rental Services

Car ownership has already been rocked by ride sharing apps like Uber and Lyft, and by peer to peer rental companies. As these services become more popular, car ownership may drop even further. 

Parking and insurance costs are discouraging people from owning their own car, and are instead pushing them to share their car when they’re not using it, to rent a car when they need it or just use ride sharing instead of driving at all. 

Cyber Attacks

There is more technology in cars than ever before, with newer models pre-equipped with systems like GPS and Bluetooth connectivity. This technology is popular as it makes it easier to connect your phone to your car, or to get directions while you’re on the go, but it can also make a car vulnerable to a cyber attack. 

In 2015, Fiat Chrysler were forced to recall a lot of vehicles after it was found that it was possible to disable the brakes and steering wheel of the car by hacking the onboard entertainment system. A security breach like this could cost a car manufacturer billions of doors. Cars aren’t getting less technology in them anytime soon, so these cyber security issues remain a real concern. 

As the industry continues to change, and new technology brings in more safety and security concerns, the automotive industry will have to learn to adapt to these changes and respond quickly to these problems.