The automotive industry and the circular economy

Kai Neumann

Model from perspective of factor profit of selected automaker

PI

The model is fairly simple if not just logical. My target was to show how wise it would be for the automotive industry to adapt to change. The Accenture article also featured the benefits of a change. However, the analysis shows ....

PI

... that a continuation of the current strategy of most vendors (continue to offer new conventional cars) seems to be almost as wise as are attractive offers of car sharing. Modular designs (for recycling and reuse) are effective in any way.
Long term....

PI

... attractive offers of car sharing may even become increasingly negative. This was against my mental model, I have to admit. It is what we see right now, an extreme variety of models and types of cars with a new model every few years. So, is my mental model wrong or the model. Well, the offer of car sharing would indeed accelerate a change back from individuals owning a car. But ...

PI

... as some factors that will shape the future of what we want will come anyway it would be unwise not to take the short term benefit of attractive offers of car sharing. Unless, all the car vendors and third parties would resist this business model collectively. But even then public transportation could win the race.