MOBILITY SERVICES DRIVING THE FLEETS OF THE FUTURE

Alex FraserAV P, P I V E T

DISRUPTION

Radio Television Cable Internet

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MOBILITY

The sharing economy becomes the new normal

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MOBILITY

0

1

2

3

4

5

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2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034

Passenger

Mile

s T

ravele

d

FLEET-OWNEDVEHICLE MILES

CONSUMER-OWNEDVEHICLE MILES

TODAY FUTURE

AV, EV

40% REDUCTION IN CONSUMER SALES

Mobility Inflection Point …

Source: Cox Automotive Strategy & Analytics

Inflection Point

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MOBILITY

VEHICLE SALES PASSENGER MILES

Driverless AV FleetConsumer-owned

Asset UtilizationAsset Utilization

Cost Per MileCost Per Mile

Mileage per yearMileage per year

~4%

~$0.50

~25%

~$0.30

Removing driver enables

high vehicle utilization

High utilization reduces

vehicle cost-per-mile basis

Shift to a Mobility Future …

Today

11k 77k

Source: Cox Automotive Strategy & Analytics 5

Phase III

A look into the future

Phase II

Dealer attitudes about the

changing mobility landscape

Phase I

Consumer attitudes about the

changing mobility landscape

MOBILITY 6

COX AUTOMOTIVE2019 EVOLUTION OF MOBILITY

STUDY SERIES

PREDICTION #1:CONSUMERS WILL

RELY SIGNIFICANTLY LESS ON

PERSONALLY OWNED VEHICLES

39%↑ of consumers believe

having transportation is necessary,

but owning a vehicle is not

47%↑ of dealers believe

consumers will own/lease fewer

vehicles per household

MOBILITY 7

PREDICTION #2:AFFORDABILITY INCREASES

CONSUMER CONSIDERATION OF

MOBILITY ALTERNATIVES

48%↑ owning/leasing a vehicle

is becoming too expensive

Gen Z (55%) & Millennials

(52%) are most likely to say

ownership is becoming too

expensive

MOBILITY 8

PREDICTION #3:GEN Z & MILLENNIALS WILL BE

FIRST TO ADOPT ALTERNATIVE

OWNERSHIP MODELS

Accessibility and affordability are

primary factors influencing decision-

making for these early adopters

40% of dealers view mobility

as an opportunity to appeal to a

new consumer base

MOBILITY 9

MOBILITY

PREDICTION #4:CAR SUBSCRIPTION WILL LEAD

IN ADOPTION OF ALTERNATIVE

OWNERSHIP MODELS

42% of consumers list

accessibility as top barrier to

adoption

45% of dealers see shared

mobility models as opportunity

for new revenue streams – fixed

ops and shared services

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MOBILITY

How to Stay Ahead of the Curve

CONSUMERS WILL

RELY SIGNIFICANTLY

LESS ON PERSONALLY-

OWNED VEHICLES

Explore additional revenue

streams outside of retail

vehicle sales

1 2 3 4AFFORDABILITY

INCREASES CONSUMER

CONSIDERATION OF

MOBILITY ALTERNATIVES

Educate consumers on the total cost

of ownership so they can make

informed decisions on the

transportation mode that will best

meet their financial needs

GEN Z & MILLENNIALS

WILL BE THE FIRST TO

ADOPT ALTERNATIVE

OWNERSHIP MODELS

Target consumers most likely to

be the early adopters of

alternative ownership models

CAR SUBSCRIPTION

WILL LEAD IN ADOPTION

OF ALTERNATIVE

OWNERSHIP MODELS

Consider a car subscription

platform as a first step into the

alternative ownership space

11Source: 2019 Cox Automotive Evolution of Mobility Study

Transform the way the world buys, sells, owns, and uses cars

The Cox Automotive Vision

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MOBILITY

Mobility Platforms

Mobility Services

Emerging Technology

Cox Automotive Mobility

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End-to-end Fleet Services to Enable Transportation Today & Tomorrow— Connects industry-leading Cox Automotive brands and trusted

providers— Comprehensive network of fleet service offerings— Solution to simplify fleet operations and maximize uptime

Convenient & Flexible Service Delivery— Physical hub locations, including flagship Manheim Metro Atlanta

Fleet Hub— Mobile solutions powered by RideKleen— ... and YOU?

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MOBILITY

Today Subscription is Real and Growing

✓ Flexibility and simplicity

✓ Right car for any activity

✓ Flip as your needs change

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MOBILITY

Recurring Business = Growth

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THANK YOU!

Alex FraserAV P, P I V E T

Phase III Four Predictions for the Futurehttps://www.coxautoinc.com/market-

insights/cox-automotive-debuts-third-phase-

of-evolution-of-mobility-study-series/

Phase II A Dealer’s Perspectivehttps://www.coxautoinc.com/news/new-survey-

of-u-s-auto-dealers-predicts-new-forms-of-

mobility-to-drive-declines-in-personal-vehicle-

ownership-number-of-dealerships/

MOBILITY 18

APPENDIX2019 EVOLUTION OF MOBILITY STUDY SERIES

Phase I Alternative Ownership and Autonomoushttps://www.coxautoinc.com/news/evolution-of-

mobility-study-alternatives-to-ownership/

https://www.coxautoinc.com/news/evolution-of-

mobility-study-autonomous-vehicles/