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Disruptive Innovations in the Auto Industry
Reshaping the Economy and our Cities
Innovations changing the way we move
5G
Wireless
Artificial
Intelligence
Internet
of Things
Driverless
Technology
Electric
Cars
Car
Telematics
Geolocation
Smart
Phones
Mobility Solutions More:
Customer centric
Flexible
Convenient
On demand
Environmentally friendly
Safe
Some changes already here
Car Sharing
Smart Parking Car pooling 2.0
Ride Hailing
P
But the prospect of autonomous vehicles (AVs)
has sparked an unprecedented race
Tech
Disruptors
Startups
Academia
OEMs
Suppliers
Chipset
Manufac-
turers
Stakeholders competing and partnering for a piece of the pie
Source: Crunchbase; CBInsights; TU-Automotive
Attracting a lot of attention
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
News Pieces on Autonomous Vehicles
At August
2017
Extrapolated
at year end
Source: Factiva
And millions of dollars
$109 $685 $407
$1,109 $1,102 $1,307
$2,126
21
44 47
72
100
49
129
2012 2013 2014 2015 2016 2017
Auto Tech Annual Global Financing
Disclosed Funding ($M) # of Deals
Source: CBInsights
At May
2017
Extrapolated
at year end
Why so much interest?
Apart from fulfilling a long-cherished dream…
In the 50’s we already
dreamed of driverless
cars!
Source: Postwar Vision Of The Future, Artist & Date Unknown
Social benefits
…There are other powerful reasons
It’s a difficult
problem to solve
Perfect setting for
commercialization
Potentially a
“game changer”
“Clearly one purpose of
autonomous systems is self-driving
cars. There are others. We sort of
see it as the mother of all Artificial
Intelligence projects.”
Tim Cook
Most complex artificial intelligence problem
500K 3-4 M
100 M
Space Shutle Boeing 777 Mercedes S
Class
Lines of Code
Source: press news; StrategyAnalytics
Social benefits
Accidents Accessibility Quality of Life
Global road fatalities: >1M
US Crashes per year: 5.5 M
Source: Insurance Institute for Highway Safety (IIHS),Citi Research; McKinsey
Human
error:
97%
Other
3%
Alcohol
31%
Speeding
30%
Other
human
error
21% Distraction
21%
Estimated daily time
freed up for
commuters globally:
1B h
Potential additional
global digital-media
revenue:
$5B /y
Potential reduction
in parking space
needs in the US:
$5.7B m2
CO2 Emissions
• People with disabilities
• Elderly
Net impact ?
Perfect setting for commercialization
Source: press news; ABIResearch
Potentially a “game changer” affecting multiple
industries apart from car makers
Source: CBInsights
Insurance Auto
Repairs
Trucking Hotels
Parking Fast Food Energy &
Petroleum
Real Estate
Oil and
Wash Shops
Healthcare Driving
Schools
Urban
Planning
Airlines Auto Parts Mobility
Providers
Public
Transit
Media Deliveries B&M Retail Auto
Dealers
Internet
Providers
Traffic
Enforcement
Cyber-
security
Car Interior
Designers
What is the key technology involved?
Source: McKinsey
But mass
adoption not
expected until
2025-2035
depending on
timely launch of
technology and
favorable
regulation
And when is it going to be ready?
Source: McKinsey, Navigant & press releases
PLAYERS
2016 17 18 19 2020 21 22 23 24 25 2030
Shared shuttle
service L4
Singapore
taxi pilot
Boston
taxi pilot
Pilot in Pittsburgh Driverless fleet
ProAI self-driving system
(NVIDIA platform) ProAI in production vehicles
Autopilot 2 and LA-NYC
driverless test
L4
Improved suite of self-
driving features L4
L4
L4Drive Me” public
test program
L4
L4Munich public test
L4
Semi-autonomous truck
ProPILOT (L3) L4
Super Cruise (L3)
L4
L4
L4
Audi A8 (L3)
Launch in
Singapore
Service expected
in 10 cities
L3: Driver does not have
to supervise system at all
times but must be in a
position to resume control
L4: Human driver is not
required for defined use
case
The road ahead is not free of challenges
Adverse Perception Regulatory Uncertainty
Infrastructure
Readiness
• Fear of safety
• Concern with jobs impact
• Cybersecurity
• Privacy
• Need for a standard
• Huge amount of testing
required
• Need for AV technology to be
able to function in all
environments
But we can start to imaging what the customer
experience will be…
Uses mobility app that:
• Integrates different modes
of transportation
• Allows to select optimal
route according to customer
preferences (time / cost
/privacy / exercise / etc.)
User decides to:
• Unlock a bike with phone and ride to the train station
• App sends an electronic signal enabling him to access the
platform and board the train seamlessly
• Shops for a few groceries while in route that are waiting at a
locker upon his arrival to the station
Start
User leaves
office late in
the evening
• Toting shopping bags, user
walks toward the rideshare
pickup area outside the
station
• The ride on the autonomous
pod, that charged itself
wirelessly, is short but user
has the time to watch an
episode of its favorite show on
the car screen
• Payment and insurance all
take place seamlessly in the
background.
End
User arrives
home
1
2
3
4
5
Source: Deloitte
Thank you

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Blanca Sanchez Carrera, Director, Strategy & Innovation, Hertz

  • 1. Disruptive Innovations in the Auto Industry Reshaping the Economy and our Cities
  • 2. Innovations changing the way we move 5G Wireless Artificial Intelligence Internet of Things Driverless Technology Electric Cars Car Telematics Geolocation Smart Phones Mobility Solutions More: Customer centric Flexible Convenient On demand Environmentally friendly Safe
  • 3. Some changes already here Car Sharing Smart Parking Car pooling 2.0 Ride Hailing P
  • 4. But the prospect of autonomous vehicles (AVs) has sparked an unprecedented race Tech Disruptors Startups Academia OEMs Suppliers Chipset Manufac- turers Stakeholders competing and partnering for a piece of the pie Source: Crunchbase; CBInsights; TU-Automotive
  • 5. Attracting a lot of attention 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 News Pieces on Autonomous Vehicles At August 2017 Extrapolated at year end Source: Factiva
  • 6. And millions of dollars $109 $685 $407 $1,109 $1,102 $1,307 $2,126 21 44 47 72 100 49 129 2012 2013 2014 2015 2016 2017 Auto Tech Annual Global Financing Disclosed Funding ($M) # of Deals Source: CBInsights At May 2017 Extrapolated at year end
  • 7. Why so much interest?
  • 8. Apart from fulfilling a long-cherished dream… In the 50’s we already dreamed of driverless cars! Source: Postwar Vision Of The Future, Artist & Date Unknown
  • 9. Social benefits …There are other powerful reasons It’s a difficult problem to solve Perfect setting for commercialization Potentially a “game changer”
  • 10. “Clearly one purpose of autonomous systems is self-driving cars. There are others. We sort of see it as the mother of all Artificial Intelligence projects.” Tim Cook Most complex artificial intelligence problem 500K 3-4 M 100 M Space Shutle Boeing 777 Mercedes S Class Lines of Code Source: press news; StrategyAnalytics
  • 11. Social benefits Accidents Accessibility Quality of Life Global road fatalities: >1M US Crashes per year: 5.5 M Source: Insurance Institute for Highway Safety (IIHS),Citi Research; McKinsey Human error: 97% Other 3% Alcohol 31% Speeding 30% Other human error 21% Distraction 21% Estimated daily time freed up for commuters globally: 1B h Potential additional global digital-media revenue: $5B /y Potential reduction in parking space needs in the US: $5.7B m2 CO2 Emissions • People with disabilities • Elderly Net impact ?
  • 12. Perfect setting for commercialization Source: press news; ABIResearch
  • 13. Potentially a “game changer” affecting multiple industries apart from car makers Source: CBInsights Insurance Auto Repairs Trucking Hotels Parking Fast Food Energy & Petroleum Real Estate Oil and Wash Shops Healthcare Driving Schools Urban Planning Airlines Auto Parts Mobility Providers Public Transit Media Deliveries B&M Retail Auto Dealers Internet Providers Traffic Enforcement Cyber- security Car Interior Designers
  • 14. What is the key technology involved? Source: McKinsey
  • 15. But mass adoption not expected until 2025-2035 depending on timely launch of technology and favorable regulation And when is it going to be ready? Source: McKinsey, Navigant & press releases PLAYERS 2016 17 18 19 2020 21 22 23 24 25 2030 Shared shuttle service L4 Singapore taxi pilot Boston taxi pilot Pilot in Pittsburgh Driverless fleet ProAI self-driving system (NVIDIA platform) ProAI in production vehicles Autopilot 2 and LA-NYC driverless test L4 Improved suite of self- driving features L4 L4 L4Drive Me” public test program L4 L4Munich public test L4 Semi-autonomous truck ProPILOT (L3) L4 Super Cruise (L3) L4 L4 L4 Audi A8 (L3) Launch in Singapore Service expected in 10 cities L3: Driver does not have to supervise system at all times but must be in a position to resume control L4: Human driver is not required for defined use case
  • 16. The road ahead is not free of challenges Adverse Perception Regulatory Uncertainty Infrastructure Readiness • Fear of safety • Concern with jobs impact • Cybersecurity • Privacy • Need for a standard • Huge amount of testing required • Need for AV technology to be able to function in all environments
  • 17. But we can start to imaging what the customer experience will be… Uses mobility app that: • Integrates different modes of transportation • Allows to select optimal route according to customer preferences (time / cost /privacy / exercise / etc.) User decides to: • Unlock a bike with phone and ride to the train station • App sends an electronic signal enabling him to access the platform and board the train seamlessly • Shops for a few groceries while in route that are waiting at a locker upon his arrival to the station Start User leaves office late in the evening • Toting shopping bags, user walks toward the rideshare pickup area outside the station • The ride on the autonomous pod, that charged itself wirelessly, is short but user has the time to watch an episode of its favorite show on the car screen • Payment and insurance all take place seamlessly in the background. End User arrives home 1 2 3 4 5 Source: Deloitte

Editor's Notes

  1. Intel One company hoping to cash in on the self-driving car is chip giant Intel, which has been investing in technologies outside of its core PC business for several years. Last week, it hosted its annual developer conference in San Francisco and touted its recent partnership with BMW AG to provide the computing power for BMW’s self-driving car efforts, via its Atom and Xeon chips. But Intel (first partnered then acquired on March 2017) is betting that it can reshape the competitive landscape with its acquisition of Mobileye, which makes cameras, sensors and software that enable cars to detect what is ahead. With the $15.3 billion deal, which closed Tuesday, Intel gains instant credibility because Mobileye already supplies technology to most major automakers and is a leader in areas like digital mapping and sensors. Nvidia Deals with automakers testing its graphics processors and DriveWorks software for developing selfdriving cars. Focus on deep learning, Avs, gaming and virtual reality. Also selling chips to car makers for other functions (infotainment, digital cockpit) in mainstream cars. Qualcomm Develops modem chips for infotainment systems and working on a connected car platform NXPI Has a portfolio of automotive chips Texas Instruments Supplier of a range of infotainment and ADAS functions including a driver assistance system-on-a-chip. Renesas Tokyo-based Renesas Electronics announced Monday that it is launching a new open platform for advanced driving assistance (ADAS) and autonomous driving systems.  Ottomatika In 2015, Delphi acquired Ottomatika, a Pittsburgh-based spinoff of Carnegie Mellon University that has software now governing path planning and control.