The document discusses how autonomous vehicles will transform the automotive industry and mobility. It outlines that more than 50 companies have been approved to test autonomous vehicles. Uber signed a deal with Volvo to supply autonomous vehicles between 2019-2021. There will be a shift from car ownership to mobility as a service, with people paying monthly fees. This will disrupt the insurance, auto loans, used car, and rental industries. Autonomous vehicles could increase property values by reducing the need for parking and reshape cities. Brands will need to become experience providers rather than just product makers to remain relevant in this new landscape.

1. Mirco Pasqualini, October 1, 2018
Automotive Brands & the
Autonomous Vehicle
Economy.
Mirco Pasqualini, October 1, 2018
TOMORROW

2. Mirco Pasqualini, October 1, 2018
“What these cars could do, how
they could do it, safety, etc…"
We can find thousands upon thousands of articles, blogs and research, but
most are limited to a perspective of technology, but
“what Automotive Brands should be in this scenario?”
READ FULL ARTICLE ONLINE

3. Mirco Pasqualini, October 1, 2018
“We expect too many changes in a
year, and not too much in 10 years”
The future will move faster, faster than
what we believe.

4. Mirco Pasqualini, October 1, 2018
More than 52 companies already
have been approved by the
California Department of Motor
Vehicles to test autonomous
vehicles on the road.
All over US other experiments are running:
California, Oklahoma, New York, Arizona, Nevada, Texas, Pennsylvania

5. Mirco Pasqualini, October 1, 2018
Uber, signed a framework
agreement with Volvo to sell "tens
of thousands of autonomous
driving compatible base vehicles
between 2019 and 2021”.

6. Mirco Pasqualini, October 1, 2018
Next step:
Mobility as a Service (MaaS)
Cars may increasingly come to resemble smartphones—not just
lumps of hardware, but consumer experiences that we pay monthly
fees to use.

7. Mirco Pasqualini, October 1, 2018
2015
$2.25 Trillion
US Consumer transportation
Future states
Car Ownership
Car as a service
$1.15 Trillion
Car Ownership
$63 Trillion
Public Transportation
$36 Trillion
Rental Cars
$12 Billions
Taxis & Limo
$1 Billion
Black Cars
Ride Sharing
Source: Bureau of Labor Statistics, IBIS World, U.S. Department of Commerce, U.S. Census Bureau, and Morgan Stanley Research

8. Mirco Pasqualini, October 1, 2018
Some consequences of a
diffused autonomous vehicles
business system

9. Mirco Pasqualini, October 1, 2018
Subordinated car’s business
disruption.
Younger people are, in growing numbers, rejecting not
just car ownership but even the once-mandatory rite of
passage that is getting a driver’s license.
Business effected
Insurance business = $190B
Auto Loans = $1.2T
Used Cars $740B
Rentals = $27B

10. Mirco Pasqualini, October 1, 2018
Since these cars are autonomous, and probably in many cases shared, the
problem of parking a car could no longer be a problem anymore.
That could increase property values and create new local economies,
including re-shaping cities and accelerating gentrification
Change in property values and
creation of new local economies.

11. Mirco Pasqualini, October 1, 2018
Personal car vs collective car.
Plenty of car companies aren’t giving up on private ownership of vehicles,
instead others such as Elon Musk foresee a Tesla Network, a “shared
autonomy fleet” in which car owners can rent their vehicles out to others on
their own terms.

12. Mirco Pasqualini, October 1, 2018
Rise of vehicle experience
business vs maker business.
No insurance to pay, no parking spots to pay for, no violation tickets, no
garage required, no maintenance, affordability, etc...

13. Mirco Pasqualini, October 1, 2018
Taxes & Insurance
Should you continue to pay an “owner tax” for each vehicle, if you share it with others?
Should we pay insurance for AI instead of the vehicle’s owner or riders?
Reduced car ownership = 2% of US GDP
Unemployed drivers (Bus, Trucks, Taxi, Uber,..) = 1% of US Workforce

14. Mirco Pasqualini, October 1, 2018
New form of car-owner income.
After having dropped off your kids at school, after dropping you off in the office, instead
of going home, you can let your car provide rides to your local community, and monetize all
this time, as an extra form of income.
Average Consumer saving $5,600 Annually (compare to owning a car)
Aspected US saving in Healthcare and First Aid $1.8T (due to the car accidents)

15. Mirco Pasqualini, October 1, 2018
What Automotive Brands
should be in this scenario?

16. Mirco Pasqualini, October 1, 2018
“Cars will not only be driverless,
but also probably ownerless, at
least in the customary sense.”
Who becomes the new customer of car maker brands?

17. Mirco Pasqualini, October 1, 2018
“Should Automotive Brands already
start to re-shape their entire brand
experience (and business) as an
Experience provider and less as a
product maker?”
What should be the new and next most relevant value in a car maker’s brand?

18. Mirco Pasqualini, October 1, 2018
We will buy only AI for Cars
independently from which car
brand we choose to unlock the
maximum experience in our
mobility experience?

19. Mirco Pasqualini, October 1, 2018
New automotive brands most
relevant factors:
Safety
Reliability
Affordability
Experience
Sustainability
Riders are safe
Concerns are addressed immediately
Cars are available
Wait times are short
Riders are affordable
Price are competitive
Vehicles are clean and comfortable
Riders are enjoyable and personalized
Impact in the system
The value from the car experience, leave
positive element in the world.

20. Mirco Pasqualini, October 1, 2018
Thanks.
Mirco Pasqualini
Head of Design, Ogilvy.
linkedin.com/in/mircopasqualini
twitter.com/mircopasqualini