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Autonomous cars are the answer: Ghosn
Renault Nissan chief lays out future strategy for safe, affordable and eco-friendly motoringThe president and CEO of the Renault Nissan Alliance has spelled out his vision for the future of the car and its place in society – and self-driving cars are at the forefront.
Speaking at the Automobile Club de France (ACF) last month, Carlos Ghosn (pictured) observed that car companies faced challenges from myriad pressure points – "four imperatives" – but these could be addressed with overlapping remedies.
The four imperatives mentioned were: safety, quality of life, environment and accessible mobility. Where the overlap occurs is, to use one example, in the commercialisation of autonomous cars. Currently a work in progress for many companies around the world, autonomous motoring offers benefits in at least three of those four imperatives.
The added safety of autonomous motoring – once all the bugs are worked out – needs no further explanation. There are also obvious 'quality of life' gains to be derived from having the car do all the work in commuter traffic; and by driving at speeds and along routes calculated to reduce overall fuel use, autonomous motoring is kinder to the environment. Additionally, the fourth imperative can be catered for once the price of the technology becomes affordable.
Ghosn predicts autonomous car Advanced Driver Assistance Systems (ADAS) will be broadly available "in less than a generation." That sounds like half a lifetime away, but Ghosn is actually more "optimistic" than that. The roll-out will begin slowly, he suggests, with Japan, the USA and France among the earliest adopters, from 2018. Ghosn foresees wider acceptance of the new technology throughout Europe from around 2020, but that is contingent on full-blooded support from the public sector around the world for the development of sophisticated infrastructure.
Renault's contribution to the autonomous car R&D focus is the 'Next Two' concept, which operates autonomously – including parking – at speeds up to 30km/h. According to Ghosn, the Next Two project has yielded a "working prototype currently being tested."
ADAS lends itself to unrelated but compatible technology, including zero emissions drivetrains and cars that will be more environmentally friendly across the whole of life. Currently, new cars in Europe must comply with an edict that 30 per cent of materials used in a car be recyclable – contributing to Ghosn's "circular economy."
Reducing the cost of materials and increasing economies of scale will lead inevitably to elevated vehicle ownership and improved affordability, particularly in emerging markets.
"To think that car ownership in the emerging countries will not rapidly reach at least half the European level is unrealistic," Ghosn said (in French).
"The goal is to offer a robust, modern and reliable car for less than €5000 in the emerging countries."
Finding new markets and increasing the demand for motor vehicles around the world will ensure car companies remain economically viable, which is important, Ghosn says, because the automotive industry is a "wonderful creator of jobs," contributing as much as "10 per cent of Europe's jobs."
Ghosn stressed the importance of regional manufacturing and marketing.
"To sell cars in China, you must assemble and source them there," he said, echoing those sentiments for India and – by extension – any emerging market. While it's of value to the local economy, expanding production into these developing markets will also safeguard the future prosperity of each company moving into those respective markets.
"If not, you will remain a small manufacturer," Ghosn remarked.
Concluding his presentation to the ACF, Ghosn touched on the changing complexion of the modern global industry, with companies "working collectively" for the greater good – one example being the collaborative effort by Renault Nissan and Daimler AG.
Contrary to the prevailing view decades ago, car companies don't have to band together as businesses – through acquisition or merger – in order to succeed. But they do have to establish reciprocal relationships for R&D.
"Reinventing the automobile and the auto industry of the 21st century is a challenge," Ghosn said. "We can only succeed collectively."
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