We believe that providing sustainable mobility solutions for customers in developing countries is one of the key business, social and environmental challenges of the 21st century. Given our knowledge and experience, we also believe this is an area in which Ford may be able to have particular positive impact.
Identifying Mega-Trends
Over the past year, Ford has undertaken an intensive research effort to identify and understand global "mega-trends" that we must respond to if we are to deliver sustainable mobility solutions.
The top five mega-trends, which are changing transportation and business realities across the globe, are as follows:
- Climate change and greenhouse gas emissions
- Rapid urbanization
- Congestion associated with a rapid increase in vehicles and traffic in urban areas
- Social inequality, including increasing income inequality and associated social issues
- Shifting demographics, especially an increase in older populations in developed countries and an increase in younger populations in developing countries
These mega-trends are especially important in developing countries, where the negative impacts of a rapid increase in vehicles are outpacing the positive impacts of mobility in many areas. In fact, in many developing countries, these trends are combining in massive and rapidly growing urban conglomerations called "mega-cities," which are a primary focus of our efforts to develop sustainable mobility solutions in emerging markets.
Mega-Cities: The Icon of Personal Mobility Challenges
Mega-cities are urban areas with more than 10 million residents. There are already at least 25 mega-cities worldwide. Twenty are located in the developing world, as are seven of the nine most populous. By 2015, there are projected to be at least 35 mega-cities, with virtually all the growth in developing countries. Mega-cities often experience a wide range of social and environmental problems, many of them related to mobility.
All of the mega-trends we have identified, as well as other challenges to sustainable mobility, are at their worst in mega-cities, including paralyzing traffic congestion, air pollution, vehicle-related injuries and fatalities, and health problems. Furthermore, social inequality and the dislocation of families and communities are increasing as people move from rural areas to mega-cities seeking economic opportunities. Developing mega-city mobility strategies will require addressing the mobility needs of rural as well as urban residents, as many mega-city problems could be improved by developing new approaches to the transportation of people and goods between rural and urban areas, and by reducing the need for rural–urban migration.
New Approaches to Developing Markets
We are exploring new strategies for developing country markets that take into consideration these economic, cultural and infrastructure characteristics. Central to our approach is the recognition that, because these markets are different than the ones Ford has historically served, we need to conduct extensive stakeholder engagement to help us understand the wants and needs of consumers in developing countries.
Additionally, we appreciate that it will require us to explore new types of business and partnership models to develop and bring to market successful mobility solutions in developing countries.
