Automotive industry 3.0
Here are some solutions to the automotive industry union woes... incorporating the corporation's concerns around EV transition costs.
I am proposing an ecosystem approach:
- Auto manufacturers argue rising costs of retooling for electric vehicles make it difficult to meet union wage demands. However, a web3 co-ownership model spreads risks and rewards across stakeholders.
- With partial employee ownership, unions can tie wage increases to profitability targets that account for R&D and CAPEX outlays needed for electrification. Smart contracts built on blockchain can automate these payouts transparently.
- Shared ownership in a platform cooperative model also unlocks access to decentralized funding like token governance and liquidity pools. This lessens dependence on debt or equity markets alone to fund the EV transition.
- Co-ownership can extend beyond automakers to the entire EV ecosystem - charging networks, battery recyclers, critical mineral suppliers etc. A distributed ledger tracks contributions and rewards across this decentralized network.
- As cars become "software-defined vehicles", auto manufacturers must partner with tech firms. Platform co-ops allow complementary skill sets to come together while sharing upside.
- Ride hailing, car subscriptions, and autonomous taxi networks are the future of transportation. Shared ownership business models allow workers to get a fair share even as car sales decline.
- AI, automation and digital platforms are shaping the future of mobility. Co-owned networks give more voice to workers instead of concentrating gains among Silicon Valley shareholders.
- More participatory governance through tokenized ownership allows workers to propose and vote on business strategies to transition into both EV and web3 era.
HOWEVER
Here is a 3-point summary of the challenges facing adoption of web3 cooperative ownership models in the auto industry:
- Institutional inertia - The auto industry is slow to embrace dramatic new business models that disrupt the status quo and power dynamics.
- Unproven models - Co-ops, DAOs, blockchain tokens represent unproven and complex alternatives to traditional corporate structures in the eyes of incumbent automakers.
- Misaligned incentives - Auto manufacturers want to protect existing control and profitability while unions aim to gain more leverage, voice and equitable pay. Bridging this incentive gap is difficult.
HOWEVER AGAIN ..
With imagination and openness to rethink old models, web3 offers the chance to both sustain livelihoods and accelerate sustainability as we enter a new age for transportation.
VROOOM!
