1

AUTONOMY & THE SHARING ECONONY A FUNDAMENTAL SHIFT IN THE AUTO INDUSTRY

2 2

Source: KBB Future Autonomous Vehicle Driver Study

Know nothing Know a little Know some

12% Know a lot

about AV

28% 35% 25%

3 3

Source: KBB Future Autonomous Vehicle Driver Study

2017 2016 2015

70% 32% 41% 49% Likely to consider

a vehicle with AV features

AV Features Make People Better Drivers

4

4 4

comfortable letting a vehicle drive them without their control

(vs. 36% of total)

Younger generations have a higher propensity to adopt AV

OF YOUNG GEN Z

48%

Source: KBB Future Autonomous Vehicle Driver Study

WILL DRIVERLESS CARS END TRADITIONAL CAR OWNERSHIP?

CAR SHARING RIDE SHARING

AUTONOMOUS

FLYING CARS V2V SELF DRIVING

IOT

RIDE HAILING

OWNERSHIP

V2I

FRACTIONAL USAGE

DRIVERLESS CAR

VTOL

5 5

Traditional Ownership

Public Transportation

Taxi / Rideshare

Fully Autonomous Taxi/Uber/Google

Ride Sharing

Public Transportation

Shared Ownership

Traditional Ownership

Subscription Services

OWNERS

FLEETS

MOBILITY SERVICES MODEL

6 6

0.0

1.0

2.0

3.0

4.0

5.0

6.0

2016 2018 2020 2022 2024 2026 2028 2030 2032 2034

Pa

ss

en

ger

Mil

es

Tra

ve

led

(T

rill

ion

s)

Fleet-Owned Vehicle Miles

Consumer-Owned Vehicle Miles

U.S. PASSENGER MILES TRAVELED

Consumer preferences evolving

Greater ease of use of ride-sharing

Consumer wallets squeezed

Ride Sharing

Car Sharing

Driverless AV

• Source: Cox Automotive 7

TRENDS DEALERS NEED

TO KNOW

Isabelle Helms, VP of Research & Market Intelligence

Jonathan Smoke, Chief Economist