We recently caught up with Michael Szudarek of Marx Layne Public Relations, who has these critical takeaways on the outlook of mobility. This is what he said…

 

“Automakers have been innovating and adapting to change ever since Henry Ford invented the first moving assembly line and made vehicles affordable on a mass scale.

Fast forward nearly a century later, and the Great Recession nearly destroyed the American automotive industry –– yet they survived –– and adapted once again with technology and innovation at the forefront.

A global pandemic is threatening the mobility landscape that has dominated the auto industry for the last decade and its impact has automakers navigating uncharted territories.

So how is COVID-19 transforming the future of mobility in this age of uncertainty? A recent analysis from McKinsey & Company offers some insights.

To help break it down, we caught up with Mike Szudarek of Marx Layne, who has these critical takeaways on the outlook of mobility.

 

Health and Safety is Paramount

As the number of COVID-19 cases continues to trend upward, consumers are aptly focused on health and safety when choosing their transportation mode. More people are working from home and avoiding public transportation due to health concerns.

While ride-sharing and public transit have quickly become overshadowed by less vulnerable transport options during the pandemic, such as personal vehicles and biking, commuters are expected to resume some normalcy in ridership post-pandemic.

The more substantial mobility shift is likely to be on long-distance travel, with more commuters favouring cars over airplanes and trains.

 

 

Policymakers Have a Say

The rising number of coronavirus infections prompted governments worldwide to restrict mobility by implementing lockdowns and social distancing measures to contain the virus’s spread.

However, in the wake of the crisis, policymakers are likely to increase their influence over the future of mobility by either advocating its economic growth or stalling its progress.

For example, regulators may enact policies that support low-emission vehicles or, by contrast, relax emission standards. They may also work with cities to stimulate eco-friendly travel by building more bike paths or offering tax incentives.

 

 

Mobility Will Vary by Region

The impact of Covid-19 on mobility may be different by region. Stakeholders will need to pivot strategies based on the virus’s outcome. For instance, cities that are considered hotspots may have higher restrictions in place, limiting mobility.

McKinsey & Company forecasts that by 2030 some major European cities will see a sweeping decrease in the use of private cars, whereas, in North America, the reduction in driving private cars is marginal.

In South Asia, where public transit is highly relied upon by the populous, it is likely to remain unhinged by 2030.

 

 

Business Models Are Changing

Pre-Covid, automakers were already re-evaluating their business models in response to personal mobility developments, including autonomous vehicles, connected cars, electrification, and ride-sharing services.

Innovation and technology have become the new business model for the auto industry.

As the virus propels forward, automakers are forced to re-examine their business models yet again as tech companies compete for their place in the market, and e-commerce dictates how vehicles are sold.

Not only will OEMs need to invest in more technology, but they will also need to quickly understand their role in mobility as a service or MaaS.

Instead of purchasing vehicles, consumers will buy miles (mobility). How automakers respond will be key to their survival.

 

 

Innovate, Innovate, Innovate

Through so much uncertainty, one thing IS certain: innovation is essential and must triumph for those with a stake in mobility to avoid their shrinking status in the ecosystem.

In conclusion, the impact of Covid-19 on mobility and consumer behaviour has certainly created challenges for those with a stake in the game.

Stakeholders have had to pivot strategies and focus on day-to-day operations and safety protocols. However, post-Covid, leadership will need to reprioritise, refocus on innovation and re-evaluate their unique value propositions.”

Who is Michael Szudarek?

As a Partner, Szudarek counsels clients in the automotive, technology and professional services industries, among others. He is responsible for directing a broad range of marketing communications, media relations, reputation management, expert positioning and strategic guidance activities for clients in both the consumer and B2B market segments.

Szudarek brings a unique understanding of the complexities of engineering and product development, management, and public policy and regulatory affairs, combined with the communications skills and relationships to deliver strategic programs.

 

Specific highlights include:

  • Public relations and marketing communications advisory services to two Chinese automakers related to increased North American visibility
  • Media affairs and communication strategy services within the automotive telematics sector for two of the world’s most recognizable brands
  • Media relations and marketing communications services for numerous automotive component suppliers—both consumer and B2B
  • Public relations counsel and day-to-day marketing communications for a premium European automaker

 

Prior to joining Marx Layne in 1998, Szudarek worked for another metro Detroit area public relations agency, where his efforts were focused primarily in servicing several automotive suppliers in implementing marketing communication programs for use throughout North America.

His academic credentials include a Bachelor of Arts degree in journalism from Wayne State University. He holds membership in the Automotive Press Association as well as other public and private board positions.

You can follow Michael on LInkedIn here.

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