Following the news that General Motors has suspended its Maven car-sharing operations;
Calum MacRae, Automotive Analyst at GlobalData, a leading data and analytics company, offers his view:
“Maven was one of those brave new mobility experiments that was guaranteed to get Wall Street excited about automotive dinosaurs seeking new revenue streams and extracting more value from underutilized assets.
“However, new business models have become a distraction for the established automotive players, when they should instead have a laser-like focus on making their products as good as they can be.
“Maven was launched in early 2016, but never really took off. With today’s unprecedented coronavirus crisis in full flow, corporate largesse is out and corporate redress is in.
“Car companies have long cast envious glances at tech start-ups and their sky-high market capitalisations. They are now being brought back down to earth by the COVID-19 crisis and must focus on core business activity.
“Original equipment manufacturers (OEMs) and suppliers will be busy cutting back to those products that are essential for driving revenue and profitability.”