Automakers are pushing hard to bring autonomous vehicles and electric vehicles to market. That includes General Motors, which is investing aggressively in both sectors at the cost of a broader contemporary vehicle portfolio, as we covered previously. However, according to a recent report from J.D. Power, consumer confidence in these future mobility technologies has actually decreased.
The Cruise Origin AV
In its recent 2020 Q1 Mobility Confidence Index Study, J.D. Power found that the consumer confidence index for autonomous vehicles decreased for the very first time, down to 35 from 36 for American consumers, and down to 36 from 39 for Canadian consumers. Both scores are on a 100-point scale.
Additionally, the study found that the U.S. consumer confidence index for electric vehicles remained steady at 55 for a fourth consecutive quarter, while the EV consumer confidence index for Canadian consumers decreased to 57 from a previous 59. These scores are also based on a 100-point scale.
The confidence index decreases are at odds with an industry-wide push to offer additional autonomous vehicle technology and all-electric vehicles. General Motors is currently spending billions to develop AV and EV tech, cutting back on its current vehicle portfolio with an aggressive “profit or die” strategy to help free up resources to cover development costs.
“Frankly, we’re concerned for automakers,” said the executive director of driver interaction and human machine interface research at J.D. Power. “They’re pushing forward with technology that consumers seem to have little interest in. Nor are they making the strides needed to change people’s minds. Especially now, automakers need to reevaluate where they’re spending money. They are investing billions in these technologies but they need to also invest in educating consumers. Lack of knowledge is a huge roadblock for future adoption.”
2020 Chevrolet Bolt EV
The J.D. Power Mobility Confidence Index Study is conducted quarterly, and examines market readiness for autonomous vehicles and electric vehicles via responses from consumers and industry experts. The recent 2020 Q1 study included responses from over 8,500 participants with regard to autonomous vehicles, and over 8,000 participants with regard to electric vehicles. Critically, the study survey was fielded in March of 2020, prior to most stay-at-home orders went into effect.
With regard to autonomous vehicles, the study’s key findings included consumer belief that autonomous vehicle and electric vehicle technology were not ready, or that society itself was not ready for the technology. Additionally, the study uncovered uncertainty over the timeframe for public availability of this technology, as well as changing needs as a result of the COVID-19 pandemic.
Key findings with regard to electric vehicles included the revelation that few consumers have experience with battery-electric vehicles, previous ownership of an EV does not guarantee future purchases, and things like charging station, driving range, and high price remain a barrier to more widespread adoption.
Comments
Has anyone ever thought that autonomous car rides could become like search engine results (or worse yet, like Facebook)? All three of those follow different algorithms programmed by someone. Let’s say you’re in a GM autonomous car. Could a Company A outbid Company B, and get “prioritized” routes to either go by that destination (advertisement), or to that destination? Or maybe your ride would be pushed further behind another person that has requested a ride to that certain company. What if an autonomous car company decides that a certain company or organization doesn’t “live up to their standards”, and refuses rides to that place, or to even go by that place…”The CEO of Company X recently retweeted content that doesn’t align with our values, so our autonomous cars will no longer include it as a destination”? Something to think about.
Big surprise here. Gas is cheap and no one wants to be near other people.
GM had better invest their money in their meat and potatoe products or lose more market share. I’m encouraged by the new full size SUVs. The ICE is not going away fast. It is still the best solution rnow for most people.
Michael Moore’s new movie helps expose the fraud that is “green energy”.
GM has alot of eggs in the EV basket… I think having a solid EV product in your portfolio is a good move but to base your entire future on it is seriously risky. GM is committed to the Chinese market where the Communists run everything, its a dictatorship. I think its a big world out there even though thats the biggest market. GM shrinks globally and focuses on China specifically…. not a good strategy IMO.
Perhaps as China gets more aggressive and other nations are beholden to them, which is coming, they’ll force EV’s on them?? Shut off the power = shut off the mobility of the people. This is real life not a movie where everyone gets along and has the same motivations….
I wish GM would take a break from all new development for a year or two. There is so much $money to be made in the next 3 to 4 years in ICE autos, with gas prices at these low prices and look like gas will remain very low for a long time. With GM position in large SUVs, full-size pickups, crossovers, large and small CUVs, Cadillac is totally rebuilt, Corvette has a 3 year backlog. Let’s make these $$billions, it is there for the taking, GM is position to make a lot of money in ICE autos.
Same color as my 2020 Bolt,Oasis Blue.
“Especially now, automakers need to reevaluate where they’re spending money. They are investing billions in these technologies but they need to also invest in educating consumers. Lack of knowledge is a huge roadblock for future adoption.”
This statement here has been a major problem with GM from the dawn of time, whether it be ICE or EV until they learn marketing they are doomed to repeat the mistakes of the past.
Its all smoke and mirrors. They have to keep stock investors who live in pipedream land with elon musk happy. Thats why they say we will have it released in two years and under production in 3, so a year from now they can delay it another year. always promising, never fulfilling. saves money, keeps the wallstreet money flowing.
I’d say few are “buying ” GM as the stock stinks. Most, I suspect are stuck with it because its a dog. No one wants to sell as they don’t need/want the losses. GM should be strong, focused and a power house yet its been a 3 legged dog stock for, well since Mary Barra has been CEO. Its a rudderless company that creates no excitement. Every single launch in the last 10 years has been underwhelming cept the Vette. All Sr Mgt needs to be fired… the Board are losers.
I bet Mary wishes she had Impalas, Lacrosse’s now to sell I know 5 people who would buy one .