Lots of money being poured into technology that might not end up paying off.
24.6.2018
The "unprecedented" amounts of money being spent on autonomous and electric vehicle development have put the automotive industry on track for a "pile-up of epic proportions" in the coming years.
According to a report from consulting firm AlixPartners, a whopping US$255 billion ($344 billion) will be poured into electric vehicle research and development (R&D) between now and 2023. That money is being used to develop upwards of 200 unique models, many of which the report argues won't be profitable because of "high systems costs, low volumes and intense competition".
Atop that projected spend on electric technology, the report says US$61 billion ($82.5 billion) will be put toward autonomous development in the same time period, despite the fact consumer surveys have suggested buyers will pay just US$2300 ($3100) for autonomy, compared to existing vehicle prices.
Currently, the study finds, it costs manufacturers US$22,900 ($30,950) to give a vehicle the technology.
"A pile-up of epic proportions awaits this industry as hundreds of players are spending hundreds of billions of dollars on electric and autonomous technologies as they rush to stake a claim on the biggest change to hit this industry in a hundred years," John Hoffecker, global vice chairman at AlixPartners, said in a statement.
"The winners in this free-for-all will be those who have the right strategies and, equally important, execute on those strategies to their fullest potential—as billions will be lost by many.”
