Ford Anticipates Fewer Cars In Cities As Automakers Ramp Up Urban Tech Transport Models

Automotive executives, recognizing both the threat and opportunity in urbanization, are re-imaging their business models. The returns to ownership and single car commuting may be declining in light of increasing congestion and rising costs of maintenance, insurance and parking.

They are trying to get ahead of the curve in a way that does not leave them exposed - and which enables them to take advantage of the emerging trends. But Ford bicycles?  JL

Peter Campbell reports in the Financial Times:

Urban congestion is an issue, with two-thirds of the world’s population to live in cities by 2050. Carmakers are looking at new business models, especially in urban areas, where owning a car is not always convenient. BMW, Audi and Mercedes-Benz have  launched city car sharing schemes, Nissan is trialling a shared-ownership project in that uses social media. Ford  has experimented with car-sharing in the UK and Germany, last year bought ride-sharing business and plans minibus service outside of the US
 Cities must have fewer cars on their roads to ease congestion and free up alternative forms of transport, Ford’s Europe president says. im Farley, who runs the US carmaker in Europe, the Middle East and Africa, will tell the FT’s Future of the Car conference in London on Wednesday that carmakers cannot be “selfish” when looking at solutions for crowded urban centres.“We must work on how to take cars out of the system when there is an alternative, more sustainable solution,” he will say. “Cities are facing huge challenges — congestion, emissions and air quality to name a few. The answer to these challenges lies in collaboration with cities and city leaders.”Carmakers are looking at new business models, especially in urban areas, where owning a car is not always convenient.Volkswagen is looking to launch on-demand minibus services in cities through its new Moia brand, while General Motors has launched a car-sharing scheme called Maven and invested $500m in Lyft, the taxi-booking service.We must work on how to take cars out of the system when there is an alternative, more sustainable solutionJim Farley, Ford’s head of EuropeBMW, Audi and Mercedes-Benz owner Daimler have all launched inner-city car sharing schemes, while Nissan is trialling a shared-ownership project in Paris that uses social media to match co-owners of a Nissan Micra car.Ford, which has experimented with car-sharing programmes in the UK and Germany, last year bought ride-sharing business Chariot and plans to expand the minibus service outside of the US later this year.Mr Farley told the FT conference that each Chariot vehicle leads to 11 fewer cars on the street in the US, and as many as 25 in China.Urban congestion is an increasingly relevant issue, with two-thirds of the world’s population expected to live in cities by 2050.“Our cars and trucks have shaped these populated areas,” he says.The FT conference, held in central London on Wednesday, (brought) together leaders from across the industry to debate the future of the sector amid a plethora of changes including electric cars, driverless cars and even the potential for flying car-like vehicles.Mike Flewitt, chief executive of McLaren Automotive, talked about the potential impact of Brexit, as well as the future of the supercar.Former Nasa engineer Maarten Sierhuis, head of Nissan’s Silicon Valley research arm, talked about the role of artificial intelligence in making autonomous vehicles better drivers than humans.The event, now in its third year, also featured speakers from Daimler, Volkswagen, Renault, Mitsubishi and Jaguar Land Rover.