Mexican Media Brands
Autonomous Cars Could Cut Crash Repair Revenue Nearly 50%
As more cars become able to drive themselves, carmakers can expect the $5.6 billion they generate each year from selling collision repair parts to plunge to $2.7 billion by 2030 and only $1.4 billion in 2040, according to KPMG’s Manufacturing Institute Automotive Center.
#economics
Share
As more cars become able to drive themselves, carmakers can expect the $5.6 billion they generate each year from selling collision repair parts to plunge to $2.7 billion by 2030 and only $1.4 billion in 2040, according to KPMG’s Manufacturing Institute Automotive Center.
The study says crash repair parts generate only 3% of average carmaker revenue but contribute as much as 20% of operating profits. That equates to a 13% drop in operating profits by 2030.
Carmakers are introducing advanced driver aids such as blind-spot warning systems, automatic braking and lane-keeping assist. Such features will help slash the average crash rate more than 60% by 2030 and 80% by 2040 compared with today’s level, KPMG says.
RELATED CONTENT
-
Report Predicts Limited Impact of Autonomous Tech on Professional Drivers
A new study says autonomous vehicles will displace some taxi drivers but have only a modest impact on the number of truck driver jobs over the next 10 years.
-
Report: Fatal Uber Crash Blamed on Flawed Software
A self-driving Uber Technologies Inc. car struck and killed a pedestrian in March because of shortcomings in its control software, says The Information.
-
Magna Advances Seating Configurations
Magna International is focusing on electrification, autonomy and smart mobility. This is taking the form of things ranging from an electrified system for rear axles (eDrive 1.0) to a collaborative arrangement with Lyft, which includes the co-development and manufacture of self-driving systems.
