A new study from KPMG predicts that the U.S. will go from a majority multi-car household to one where only 43% of households have more than one motor vehicle by 2040, and rideshare and car-share, along with demographic changes, will play key roles.
"As a growing number of consumers participate in car sharing [e.g., Zipcar], wait longer to buy their first vehicle and move to the suburbs, KPMG predicts that in about 25 years, fewer than half of U.S. households will own more than one vehicle," writes Phil LeBeau of CNBC.
According to the report, 57 percent of American households currently have two or more cars. Although that percentage has held relatively steady over the last couple of decades. Gary Silberg, (a partner at KPMG who conducted the study and heads KPMG's automotive practice) forecasts it will fall to 43 percent by 2040. That's thanks, in part, to the growing popularity of ride-share [e.g., Uber] companies.
The report is not centered on declining auto ownership, however. It is about the changing auto marketplace, and how auto manufacturers need to be innovative to survive. KPMG's press release states, "In its latest whitepaper, “Me, My Car, My Life [PDF],” KPMG’s automotive practice suggests that the era of ubiquitous connectivity - the moment when you, your car and your life are one - has arrived."
Greg Gardner of the Detroit Free Press adds to the dialogue on the future of car ownership by writing about a related, if conflicting talk given by Ford Motor Co. executive chairman Bill Ford in Dubai on Nov. 19.
Where the KPMG study and Ford diverged was on the role the traditional auto industry will play in solving the challenge of urban mobility.
Gardner indicates that whereas Ford sees the auto industry rising to the occasion to meet urban residents' mobility needs, Silberg foresees "displacement of the status quo." "We will see new players surge forth, some old players reinvent themselves and others totally left behind", said Silberg.
"What if autonomous driving could extend the driving life of the elderly?" Ford asked. "What if this technology could enable them to maintain the personal freedom that comes from mobility? Imagine how that could improve their quality of life, and reduce some of the dependency on caregivers."
"Silberg held firm to his projection that technology will deliver alternatives to individual vehicle ownership," writes Gardner.
"Owning a car is not the most rational economic decision," he said. "The average price of a car is around $31,000. The minute you drive it off the lot you lose 11% and, by the way, it sits idle 90% of the time."
FULL STORY: Wave goodbye to the two-car family
Pennsylvania Mall Conversion Bill Passes House
If passed, the bill would promote the adaptive reuse of defunct commercial buildings.
World's Largest Wildlife Overpass In the Works in Los Angeles County
Caltrans will soon close half of the 101 Freeway in order to continue construction of the Wallis Annenberg Wildlife Crossing near Agoura Hills in Los Angeles County.
U.S. Supreme Court: California's Impact Fees May Violate Takings Clause
A California property owner took El Dorado County to state court after paying a traffic impact fee he felt was exorbitant. He lost in trial court, appellate court, and the California Supreme Court denied review. Then the U.S. Supreme Court acted.
Podcast: Addressing the Root Causes of Transit Violence
Deploying transit police is a short-term fix. How can transit agencies build sustainable safety efforts?
Minneapolis as a Model for Housing Affordability
Through a combination of policies, the city has managed to limit the severity of the nationwide housing crisis.
Indy Bikeshare System Turns 10, Expands to E-Bikes
Pacers Bikeshare riders logged over 700,000 rides since the system launched in 2014.
City of Costa Mesa
Licking County
Barrett Planning Group LLC
HUD's Office of Policy Development and Research
Mpact Transit + Community
HUD's Office of Policy Development and Research
Tufts University, Department of Urban and Environmental Policy & Planning
City of Universal City TX
ULI Northwest Arkansas
Urban Design for Planners 1: Software Tools
This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.
Planning for Universal Design
Learn the tools for implementing Universal Design in planning regulations.