GM: A driverless automobile may be here soon
Posted by: in Companies Competitive StrategyFiled under: Forecasts, Industry, Consumer experience, Competitive strategy, General Motors (GM)
General Motors Corp. (NYSE: GM) might be taking the concept of the designated driver a bit far. According to The Wall Street Journal, the company is “prepared to spend millions of dollars in pursuit of something long viewed as science fiction: a vehicle that drives itself.”
The new vehicles, if they ever come to market, will be able to park themselves, accelerate and brake without the driver’s help, and move around spots with traffic congestion. In theory, the automobiles will be safer because they’ll take certain functions that may be critical in avoiding accidents and give them to a machine.
The plan does have drawbacks. One is clearly going to be cost. The driverless cars won’t be money savers; they’ll still need engines, wheels, seats and radios. That actually means that a “driverless” car is apt to be more expensive. In an era where fuel costs could stay high for years or even decades, it is not clear that consumers want to spend more for vehicles with fancy features.
GM might feel that it needs more bells and whistles to make its vehicles more attractive than competition from Japan, but products with better quality, longer warranties and higher fuel mileage might work just as well.
Douglas A. McIntyre is an editor at 247wallst.com.
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