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Three Big Gear Shifts for the World Car Industry
4th April 2010
Margareta Pagano has a fascinating comment piece in the Independent citing three possible game changers in the world auto industry
1/ The takeover of Volvo by Chinese car maker Geely 2/ A sizeable investment in research by the Norwgeian government in advanced batteries for the next generation of electric cars 3/ Research in Italy about a new business model for car finance built around leasing vehicles rather than buying them - this (according to Pagano) could be the tipping point for the industry
“leasing cars is the future; it’s cheaper and more sustainable as the manufacturer takes back the cars to recycle. Imagine that, no more second-hand dealerships; no more Arthur Daleys.”
How might a move towards leasing vehicles affect the car insurance industry? There is a growing market in car rentals - especially for those wanting short-term mobility around cities. Can leasing ever take-off from the household sector?
More here
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.
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