The End of the Auto Era as We Know It May Be Approaching Faster Than You Think

 

Bob Lutz is a former vice chairman and head of product development at General Motors. And in this essay for Automotive News, he declares the end of the auto industry as we know it:

It saddens me to say it, but we are approaching the end of the automotive era. The auto industry is on an accelerating change curve. For hundreds of years, the horse was the prime mover of humans and for the past 120 years it has been the automobile. Now we are approaching the end of the line for the automobile because travel will be in standardized modules. The end state will be the fully autonomous module with no capability for the driver to exercise command. You will call for it, it will arrive at your location, you’ll get in, input your destination and go to the freeway. . . .

Most of these standardized modules will be purchased and owned by the Ubers and Lyfts and God knows what other companies that will enter the transportation business in the future. A minority of individuals may elect to have personalized modules sitting at home so they can leave their vacation stuff and the kids’ soccer gear in them. They’ll still want that convenience. The vehicles, however, will no longer be driven by humans because in 15 to 20 years — at the latest — human-driven vehicles will be legislated off the highways. The tipping point will come when 20 to 30 percent of vehicles are fully autonomous. Countries will look at the accident statistics and figure out that human drivers are causing 99.9 percent of the accidents. . . .

CNBC recently asked me to comment on a study showing that people don’t want to buy an autonomous car because they would be scared of it. They don’t trust traditional automakers, so the only autonomous car they’d buy would have to come from Apple or Google. Only then would they trust it. My reply was that we don’t need public acceptance of autonomous vehicles at first. All we need is acceptance by the big fleets: Uber, Lyft, FedEx, UPS, the U.S. Postal Service, utility companies, delivery services. Amazon will probably buy a slew of them. These fleet owners will account for several million vehicles a year. Every few months they will order 100,000 low-end modules, 100,000 medium and 100,000 high-end. The low-cost provider that delivers the specification will get the business.

Of course don’t forget the second half of the phrase “creative destruction”:

So auto retailing will be OK for the next 10, maybe 15 years as the auto companies make autonomous vehicles that still carry the manufacturer’s brand and are still on the highway. But dealerships are ultimately doomed. And I think Automotive News is doomed. Car and Driver is done; Road & Track is done. They are all facing a finite future. They’ll be replaced by a magazine called Battery and Module read by the big fleets. The era of the human-driven automobile, its repair facilities, its dealerships, the media surrounding it — all will be gone in 20 years.

Published in Culture, Economics, Technology
Like this post? Want to comment? Join Ricochet’s community of conservatives and be part of the conversation. Join Ricochet for Free.

There are 208 comments.

Become a member to join the conversation. Or sign in if you're already a member.
  1. EDISONPARKS Member
    EDISONPARKS
    @user_54742

    Elizabeth Salinger (View Comment):
    Before making the 2002 movie Minority Report, Spielberg gathered a bunch of folks together in a creative think tank and asked how the world would look in 25 years. Each time I watch it, I’m always impressed with how very possible everything seems and how much of it is right on the money. When they go to the part about transportation, the think tank didn’t say “oh, we’ll make them flying cars,” they realized that the Jetsons idea wouldn’t cut it, that Americans love their cars and they love to drive, but that in highly populated areas, as cars became more techy and less mechanical in nature, it would be more efficient for the computer to take over.

    If that’s the case, I think it will start where cities contract out their transportation grid to a tech company that owns the responsibility for the whole thing. It will be illegal for a human to drive within that vicinity. But as soon as you get into a rural setting or interstates that are outside metropolitan areas, you get control of the vehicle again.

    Thanks for posting, btw. Born and raised in Detroit, general interest in the auto industry is ingrained in you for life. :)

    What button would you push to program a car to illegally double park in front of a restaurant on a tight busy city street while some disabled elderly restaurant goers are helped into a car.   Not to mention city valet parking and the crazy park jobs those guys have to perform.

    I think we will discover that as flawed as humans are, it is next to impossible to program in every variable and nuance that happens when we drive that we as humans encounter and react to instinctively to our benefit (ie: turning off a major street onto a side street when we see an accident is stopping traffic ahead).

    • #31
  2. rico Inactive
    rico
    @rico

    OccupantCDN (View Comment):

    RushBabe49 (View Comment):
    What a bunch of [redacted].

    My car is My Liberty, no government will make me give it up, ever. I will never voluntarily own a vehicle that subjects me to constant range anxiety. When Congress does away with the tax credit for electric vehicles, sales will crater, where they belong. In fact, drivers of electric cars should pay a $500 tax every year, to make up for the road maintenance they are not paying for through gas taxes.

    Thats a good point. Electric self driving cars would bankrupt the states and cities that depend on gas taxes and speeding tickets for a fair percentage of their budgets.

    This financing problem will be solved by 1> randomized “speeding events” and 2> mandatory cigarette purchase quotas for riders of self-driving cars.

    • #32
  3. Bob W Member
    Bob W
    @WBob

    Basil Fawlty (View Comment):

    Bob W (View Comment):
    Not to mention the question, will your car be programmed to kill you under certain situations? Such as when it must decide whether to hit someone or steer the car off a cliff?

    Or when it’s surrounded by Antifa protestors.

    That’s right! Will driverless cars respond to a “ramming speed!” command?

    • #33
  4. Kate Braestrup Member
    Kate Braestrup
    @GrannyDude

    Bob W (View Comment):
    What if you want to make out with your girlfriend or boyfriend in a car?

    Ummmnnn…..this seems, somehow, evidence for the other side?

    Personally, I’m looking forward to naps, reading and knitting.

    • #34
  5. DrewInWisconsin Member
    DrewInWisconsin
    @DrewInWisconsin

    OccupantCDN (View Comment):
    I highly doubt that human driven vehicles will ever be completely banned, particularly in the places that have seasons, winter driving conditions are way too challenging for the robot drivers.

    Neither legislators nor think tanks consider reality when they dream their robot dreams.

    The market will never demand we get rid of human-driven cars. Just like the market never demanded that we legislate away the 75-watt incandescent bulb. Instead, it will be the corporate rent-seekers paying off legislators to do their bidding.

    • #35
  6. Hoyacon Member
    Hoyacon
    @Hoyacon

    rico (View Comment)

    When manual-driven cars are outlawed, only outlaws will have manual-driven cars.

    You betcha.  If I’m going down, it’ll be in a Charger SRT 392.  Top O’ the World, Ma!

     

    • #36
  7. DrewInWisconsin Member
    DrewInWisconsin
    @DrewInWisconsin

    La Tapada (View Comment):
    I am trying to imagine the events at the church shooting in Texas taking place in the context of driverless cars: The shooter arrives in his driverless car and asks it to wait for him for a few minutes. . . .

    Silly person. Driverless cars won’t take you to church. That would require the use of the National Robot Car Auto Control Grid, and using that to take you to church would violate the separation of church and state.

    Think like a Democrat and the abuses are myriad.

    • #37
  8. DrewInWisconsin Member
    DrewInWisconsin
    @DrewInWisconsin

    rico (View Comment):

    James Pethokoukis: CNBC recently asked me to comment on a study showing that people don’t want to buy an autonomous car because they would be scared of it. They don’t trust traditional automakers, so the only autonomous car they’d buy would have to come from Apple or Google.

    THIS is the truly huge breakthrough: We’ll all place our trust in Apple and Google.

    I detect sarcasm. : )

    • #38
  9. Max Knots Member
    Max Knots
    @MaxKnots

    James Pethokoukis: Most of these standardized modules will be purchased and owned by the Ubers and Lyfts and God knows what other companies that will enter the transportation business in the future.

    Or maybe not. Uber doesn’t own vehicles now. It’s business module requires their drivers to own, insure and maintain the vehicles. For this and a modest fee, Uber finds and connects them to customers and handles the money. The power of this concept is its ability to provide additional surge resources when demand increases.

    Sure there’s the potential for abuse; drivers who shouldn’t be drivers for example. But the taxi industry has the same problem. And because customers don’t generally rate the drivers, and the drivers the customers, I think the potential for abuse is worse in the traditional taxi business.

    I’ve used Uber a few times when I was medically unable to drive myself and found the service to be exactly what I needed.

    • #39
  10. DrewInWisconsin Member
    DrewInWisconsin
    @DrewInWisconsin

    RushBabe49 (View Comment):
    When Congress does away with the tax credit for electric vehicles, sales will crater, where they belong.

    Very very good point.

    • #40
  11. rico Inactive
    rico
    @rico

    DrewInWisconsin (View Comment):

    rico (View Comment):

    James Pethokoukis: CNBC recently asked me to comment on a study showing that people don’t want to buy an autonomous car because they would be scared of it. They don’t trust traditional automakers, so the only autonomous car they’d buy would have to come from Apple or Google.

    THIS is the truly huge breakthrough: We’ll all place our trust in Apple and Google.

    I detect sarcasm. : )

    automated sarcasm detection system? check.

    • #41
  12. Larry Koler Inactive
    Larry Koler
    @LarryKoler

    EDISONPARKS (View Comment):

    Justin Hertog (View Comment):
    In all seriousness, I think Lutz is on to something. He says that human-driven cars will be legislated off the road. And that’s the only way his prediction about the end of automobile era will come true. Think about electric vehicles. As long as gas is cheap, EVs will never dominate; the economics don’t work. The cars are too expensive and they don’t save drivers nearly enough money. The question is not whether a legislature can ban a product; it’s whether they can compete in a free market.

    I’ve always wondered what is supposed to happen when our entire vehicle fleet (cars, trucks, tractor trailers) goes electric.

    Wouldn’t we then need to massively expand our electric generating capacity and wouldn’t that most likely be generated by coal. We would be exchanging one carbon emitting fuel (gasoline,diesel) for another coal (most likely coal given low capacity/expense of solar and wind and the environmentalist dislike of hydro and nuclear).

    Not to mention abandoning a well developed driver retail fuel distribution system that has worked remarkably well for nearly a century.

    I love the fact that some critics call electric cars: coal-powered cars.

    • #42
  13. EJHill Podcaster
    EJHill
    @EJHill

    Wait until we have autonomous vehicular terrorism, i.e. navigation systems that produce a single day of spectacular carnage. Then, when people refuse to ride them and the economy takes a massive hit the man with antique car will make a mint.

    • #43
  14. James Gawron Inactive
    James Gawron
    @JamesGawron

    anonymous (View Comment):
    What many people miss is that autonomous vehicles don’t have to be better than the best human drivers, but simply better than the mean human driver, in order to reduce the number of accidents and casualties.

    John,

    So, of course, you are willing to write that into a warranty, yes. Do you actually think that in any given situation when the autonomous car wrecks and kills people that the lawyer for the plaintiff won’t assert that a human driver could have avoided the accident? Juries aren’t insurance companies. I think you may be missing the fact that your evolution to a self-driving car superior to the mean human driver may be an evolutionary just-so story. The probability that everything will come together to form even your mean driver superior vehicle is far too remote to actually happen.

    Meanwhile, when you fall short, predators will be around to devour your new, less than viable, automobile species.

    Regards,

    Jim

     

    • #44
  15. James Gawron Inactive
    James Gawron
    @JamesGawron

    anonymous (View Comment):

    James Gawron (View Comment):
    I think you may be missing the fact that your evolution to a self-driving car superior to the mean human driver may be an evolutionary just-so story. The probability that everything will come together to form even your mean driver superior vehicle is far too remote to actually happen.

    Get back to me in 2025. Everybody who has bet against Moore’s law since 1965 has lost. With present-day sensors and compute power, autonomous vehicles are arguably already competitive with human drivers. By 2025, the sensors and compute power will have increased in capability by a factor of 16, while human drivers will be no better.

    John,

    Remember Chess? This is a simple game with a fixed little 2D universe of 64 squares and six different pieces. The list of the rest of the rules is rather short. This game starts in exactly the same position every time with no random variables to worry about. It took about 3 decades to slowly creep up on being better than humans. First, the software would improve and then the hardware would invest the major concepts from the software and then new concepts would be worked out in the software..etc. There’s going to be a lot of dying when it isn’t a stupid little chess board and human life will be at stake on every iteration.

    Regards,

    Jim

    • #45
  16. David Foster Member
    David Foster
    @DavidFoster

    Here’s a case study on an interstection between transportation, automation, and bureaucracy:  Blood on the tracks

    • #46
  17. Justin Hertog Inactive
    Justin Hertog
    @RooseveltGuck

    Miffed White Male (View Comment):

    Justin Hertog (View Comment):
    As long as gas is cheap, EVs will never dominate; the economics don’t work.

    The irony is that the more electric vehicles there are on the road, the cheaper gas will get (due to reduced demand).

    I was wondering about that, too.

    EDISONPARKS (View Comment):

    Justin Hertog (View Comment):
    In all seriousness, I think Lutz is on to something. He says that human-driven cars will be legislated off the road. And that’s the only way his prediction about the end of automobile era will come true. Think about electric vehicles. As long as gas is cheap, EVs will never dominate; the economics don’t work. The cars are too expensive and they don’t save drivers nearly enough money. The question is not whether a legislature can ban a product; it’s whether they can compete in a free market.

    I’ve always wondered what is supposed to happen when our entire vehicle fleet (cars, trucks, tractor trailers) goes electric.

    Wouldn’t we then need to massively expand our electric generating capacity and wouldn’t that most likely be generated by coal. We would be exchanging one carbon emitting fuel (gasoline,diesel) for another coal (most likely coal given low capacity/expense of solar and wind and the environmentalist dislike of hydro and nuclear).

    Not to mention abandoning a well developed driver retail fuel distribution system that has worked remarkably well for nearly a century.

    I recall one scholar (it might have been Peter Huber) saying that it would make more sense to embrace CNG for automobiles over electricity. The advantage of CNG is that existing gasoline engines can be converted to CNG for relatively little money. Also, the existing distribution system of gas stations could be used to sell the product. The conversions can also work for the “big iron” rigs that currently use diesel fuel. But there does not seem to be much interest in CNG.

    • #47
  18. James Gawron Inactive
    James Gawron
    @JamesGawron

    anonymous (View Comment):

    James Gawron (View Comment):
    Remember Chess?

    Remember Go? This was a game that everybody expected to defy computer players for at least a decade into the future. In 2015, AlphaGo defeated 9-dan player Lee Sedol in a tournament match, and in 2017 it defeated Ke Jie, the number one ranked human player in the world. Human players now study innovative strategies developed by AlphaGo which no human player tried over millennia.

    It’s difficult to appreciate exponential growth. When compute power is doubling every two years, what’s absurdly impossible today will be easy five or six years from now.

    John,

    Go has fewer rules and fewer different pieces than chess. It is far less of a challenge. This is exactly the kind of hubris that makes me so repelled by this whole project. This is simply a fantastically hard application and human lives will be in the balance to a huge degree. Do you remember the integrity and work ethic of the 50s and 60s. I’m not sure we have that kind of integrity anymore. When the dying starts they’ll run for the hills. They just want to make a quick easy buck riding on the back of technology that they haven’t the slightest idea of the difficulty of making.

    Why, John, you know that Mathematics itself is racist.

    Regards,

    Jim

    • #48
  19. James Lileks Contributor
    James Lileks
    @jameslileks

    As I’ve said before on the subject, the desire of the state to control mobility is a way of enforcing their preferred mode of urban organization: large concentrations of dense housing with small allotments of private space. The people who vote for such things do not want them for themselves; they want nice houses with lawns and gardens, or big lofts downtown in reclaimed buildings, overlooking the river. But they hate the suburbs, and believe everyone in general is better off if we (meaning, they)  live in dense, “sustainable” developments, bike to work, or take the bus.

    These are the people who will vote for “progressive” politicians who will legislative human-driven vehicles off the road. These voters are already intellectually predisposed to approve of altering other people’s behavior by coercion, if the outcome is nominally egalitarian.

    By the time the first attempts are made, we’ll have heard “car culture” described in the same terms as “gun culture”; the arguments about freedom will be drowned out by angry recitations of highway fatality statistics. The first politician to get behind the idea will run ads that show him next to his prized BelAir, talking about how he loves to drive, and how his daddy was a shade-tree mechanic, and no one’s coming to take your keys away. “But it’s time to look to a cleaner, safer future.”

    Ten years later a series of scandals and mishaps will lead to a push to define the  transportation companies as public utilities, and they’ll be regulated to prioritize and ration certain types of travel.

    It’s possible, no?

    • #49
  20. Larry Koler Inactive
    Larry Koler
    @LarryKoler

    RushBabe49 (View Comment):
    What a bunch of [redacted].

    My car is My Liberty, no government will make me give it up, ever. I will never voluntarily own a vehicle that subjects me to constant range anxiety. When Congress does away with the tax credit for electric vehicles, sales will crater, where they belong. In fact, drivers of electric cars should pay a $500 tax every year, to make up for the road maintenance they are not paying for through gas taxes.

    What if you only have to charge your car once a week? or batteries that last 30 days?

    • #50
  21. James Gawron Inactive
    James Gawron
    @JamesGawron

    James Lileks (View Comment):
    As I’ve said before on the subject, the desire of the state to control mobility is a way of enforcing their preferred mode of urban organization: large concentrations of dense housing with small allotments of private space. The people who vote for such things do not want them for themselves; they want nice houses with lawns and gardens, or big lofts downtown in reclaimed buildings, overlooking the river. But they hate the suburbs, and believe everyone in general is better off if we (meaning, they) live in dense, “sustainable” developments, bike to work, or take the bus.

    These are the people who will vote for “progressive” politicians who will legislative human-driven vehicles off the road. These voters are already intellectually predisposed to approve of altering other people’s behavior by coercion, if the outcome is nominally egalitarian.

    By the time the first attempts are made, we’ll have heard “car culture” described in the same terms as “gun culture”; the arguments about freedom will be drowned out by angry recitations of highway fatality statistics. The first politician to get behind the idea will run ads that show him next to his prized BelAir, talking about how he loves to drive, and how his daddy was a shade-tree mechanic, and no one’s coming to take your keys away. “But it’s time to look to a cleaner, safer future.”

    Ten years later a series of scandals and mishaps will lead to a push to define the transportation companies as public utilities, and they’ll be regulated to prioritize and ration certain types of travel.

    It’s possible, no?

    JamesL,

    Gimme that old time megalomania.

    Regards,

    Jim

    • #51
  22. Larry Koler Inactive
    Larry Koler
    @LarryKoler

    anonymous (View Comment):
    What many people miss is that autonomous vehicles don’t have to be better than the best human drivers, but simply better than the mean human driver, in order to reduce the number of accidents and casualties. The mean human driver isn’t all that good,

    Mean people shouldn’t drive anyway. I know: let’s just outlaw mean people. Like guns, too.

    Like this: It’s now against the law to be mean and if you are mean you cannot leave your home.

    • #52
  23. Stina Member
    Stina
    @CM

    James Lileks (View Comment):
    As I’ve said before on the subject, the desire of the state to control mobility is a way of enforcing their preferred mode of urban organization: large concentrations of dense housing with small allotments of private space. The people who vote for such things do not want them for themselves; they want nice houses with lawns and gardens, or big lofts downtown in reclaimed buildings, overlooking the river. But they hate the suburbs, and believe everyone in general is better off if we (meaning, they) live in dense, “sustainable” developments, bike to work, or take the bus.

    These are the people who will vote for “progressive” politicians who will legislative human-driven vehicles off the road. These voters are already intellectually predisposed to approve of altering other people’s behavior by coercion, if the outcome is nominally egalitarian.

    By the time the first attempts are made, we’ll have heard “car culture” described in the same terms as “gun culture”; the arguments about freedom will be drowned out by angry recitations of highway fatality statistics. The first politician to get behind the idea will run ads that show him next to his prized BelAir, talking about how he loves to drive, and how his daddy was a shade-tree mechanic, and no one’s coming to take your keys away. “But it’s time to look to a cleaner, safer future.”

    Ten years later a series of scandals and mishaps will lead to a push to define the transportation companies as public utilities, and they’ll be regulated to prioritize and ration certain types of travel.

    It’s possible, no?

    I think I just died a little inside.

    • #53
  24. Retail Lawyer Member
    Retail Lawyer
    @RetailLawyer

    rico (View Comment):
    I look forward to driving the last human-driven car. Imagine — merging onto the freeway, left turns against oncoming traffic, etc. — every car on the road yields to your every whim.

    Rico grasps the problem here.  I suppose you could outlaw human operated vehicles.  But the pedestrians would be even worse.  Lutz needs to get out more.  In San Francisco you can see pedestrians taunting  cars, walking through red lights as a political statement.
    And then there are the drunks and lunatics.  The beggars will create  impromptu toll booths.  The only reason they have not brought traffic to a complete halt is the fear that some driver is texting and will run them over, or get so pissed off that they resort to violence.

    This is utopian nonsense.  Think Segway.

    • #54
  25. rico Inactive
    rico
    @rico

    James Lileks (View Comment):
    The first politician to get behind the idea will run ads that show him next to his prized BelAir, talking about how he loves to drive, and how his daddy was a shade-tree mechanic, and no one’s coming to take your keys away. “But it’s time to look to a cleaner, safer future.”

    This is truly insightful.

    • #55
  26. Miffed White Male Member
    Miffed White Male
    @MiffedWhiteMale

    anonymous (View Comment):
    It’s difficult to appreciate exponential growth. When compute power is doubling every two years, what’s absurdly impossible today will be easy five or six years from now.

    So the computer can make stupid mistakes that much faster.

    Had an email conversation with my brothers this morning, before this thread appeared.  One of them recently recommended a book he had picked up in a  used book shop:  “There’s a war to be won:  The United States Army in World War II”.   Brother # 2 went to his local library to reserve a copy, and did a “search by title” in the catalog.  He got two returns on the title search:

    1:  The book,

    2:  the DVD set for the second season of Desperate Housewives.

    I replied to the two of them that this was more evidence that self-driving cars would not be widely available in our lifetime.

     

    • #56
  27. OldPhil Coolidge
    OldPhil
    @OldPhil

    Stina (View Comment):
    No automated vehicles until we get our hover craft.

    I know; I’m still waiting for the flying cars I saw on the Jetsons.

    • #57
  28. Weeping Inactive
    Weeping
    @Weeping

    I wouldn’t be surprised if the car as we know it today will one day be gone. That’s how technology works – it keeps changing. However, I doubt it will disappear within the next 20 years. 50 to 100, maybe – but not 20.

    • #58
  29. Weeping Inactive
    Weeping
    @Weeping

    Viator (View Comment):
    It’s never going to happen. Does your smart TV always work, do you have problems streaming videos, does your computer ever freeze, reboot, or need rebooting? Do you have an automobile with the check engine light on (check engine only monitors the emissions, imagine if it monitored the whole vehicle which it would have to do with a self driving vehicle) and a mechanic pulling his hair out after the third trip to see him? Are your roads clearly marked with lines 24/7, 365 days of the year? Would your teenagers, or you, be prepared to suddenly take control of your vehicle in an instant when it relinquished control because of a fault?

    Self driving vehicles are a fantasy divorced from reality.

    I’m not convinced that the technology won’t advance to the point where self-driving vehicles and the future envisioned by the person interviewed will never happen. But you do bring up some excellent obstacles that will need to be overcome first.

    • #59
  30. Weeping Inactive
    Weeping
    @Weeping

    Bob W (View Comment):
    The only thing that gives me pause is the millennial “iGen” kids. They’re weird. Who knows what they will or will not put up with.

    ****************************************

    anonymous (View Comment):

    James Gawron (View Comment):
    Remember Chess?

    Remember Go? This was a game that everybody expected to defy computer players for at least a decade into the future. In 2015, AlphaGo defeated 9-dan player Lee Sedol in a tournament match, and in 2017 it defeated Ke Jie, the number one ranked human player in the world. Human players now study innovative strategies developed by AlphaGo which no human player tried over millennia.

    It’s difficult to appreciate exponential growth. When compute power is doubling every two years, what’s absurdly impossible today will be easy five or six years from now.

    These are reasons why I’m not willing to completely rule out the possibility of a future with only autonomous cars.

    • #60
Become a member to join the conversation. Or sign in if you're already a member.