Hot Auto Topics From CAR(la) Center For Automotive Research - June 24, 2022
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Traverse City MI June 24, 2022; Electric vehicle affordability
and incentives were a hot topic
this week as inflation continues
to affect the cost of EVs, among
other things. There were also
some interesting studies from
IIHS and NHTSA related to
driver-assistance features in
vehicles. Lastly, we review
recent partnerships and
acquisitions in the industry,
with many of them contributing
to the EV revolution.
As microchip shortages and other
supply chain struggles continue
to plague the automotive
industry, we have migrated all
news updates related to supply
chain disruptions to our
website. You can stay informed
on the various supply chain
crises affecting the global auto
industry here.
If you missed my previous Hot
Topics email, you can read it here..
We would love to hear from you
and welcome your questions at
any time. If you're interested
in sharing your thoughts with us
on hot topics, or if you would
like to ask us a research
question, please reach out to Sara
Bozer.
Hot
Topics of 6/20/2022
- 6/24/2022
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EV
Affordability and Incentives
My
thoughts:
Even ICE vehicles are reaching
unaffordable prices for the vast
majority of Americans. With
inflation taking an even larger
toll on one’s pocketbook,
hanging on to an older vehicle
and making it last longer is a
more affordable option. Or, we
really need to make an equitable
mobility ecosystem which
provides transit regardless of
your social status. CAR
ownership is NOT a reality or
solution for many people. There
are those who prefer NOT to own
a vehicle and there are those
who don’t have the luxury of a
preference.
BUT, mobility is the key to
opportunites such as jobs,
education and healthcare. Beyond
this, we have a number of
Americans (myself included)
predicted to outlive their
driver’s license by 10 years. I
believe this group of people
will want mobility solutions to
see family, friends, and
participate in an active life.
It is good to see China, Inda,
and Europe putting “city” cars
in the market and making more
affordable options. These
options need to be part of
mobility solutions, not
individual ownership.
Further, we need to have a
public transit system that
connects our major cities and
has 1st mile/last
mile solutions. There has been a
lot of work in this doman via
our UTCs(University
Transportation Centers), but we
need to make them all
commercially viable. The
automakers have a key role here
to expand their portfolio and
options. I challenge us all to
think differently about this
problem and solution.
Recent
Vehicle Safety Studies
My
thoughts:
On a personal note, my family
experienced a tragedy last
weekend due to a high speed
front end collision. My nieces’
husband lost his sister,
brother, and aunt in a vehicle
crash which is still under
investigation. We continue to
see the data on accidents go
north exponentially and it’s
time to take action. Our ADAS
systems work well, but our older
cars on the road don’t have
these systems. Why don’t we
have retrofit kits available?
Additonally, we need clear
performance standards for these
systems and we need to better
inform our drivers what they are
“really” capable of doing. This
starts with driver education
with reinforcement at the dealer
or via the delivery method.
Then, let’s remember a lesson I
was taught when I was learning
to drive. My father looked me in
the eyes and said, “Carla – you
are behind the wheel of a 4000
lb killing machine.” Maybe that
seems like strong language, but
at my age, I remember it like it
was yesterday. Let’s end
distracted driving and make sure
that nobody has to live their
life knowing it was their
distraction that caused them to
“kill or maim” another person.
New
Partnerships and Acquisitions
My
thoughts:
These partnerships are going to
continue to happen as companies
who need expertise without
existing human capital will
partner or acquire those that
do. There is an interesting
twist that is starting to be
seen lately related to the need
to work with someone who will
help you with your
sustainability goals. Be it
tires made of new materials,
battery recyclers, solar power
for manufacturing and more,
these partnerships now involve
due diligence of alignment
regarding sustainability.
Sustainability means much more
than just environmental carbon
footprint, but includes social
(D&I and labor conditions)
as well as governance (audit
standards, honesty in actions
and board behavior).
Due diligence used to mainly be
related to financials, but no
longer, as financial performance
is intertwined with
sustainability goals and
delivery. Companies now
seriously think about the
culture of the company – does it
fit with their model or will it
create too much clash? We’ve
seen too many failures in these
areas over the years and leaders
have learned their lessons.
Personally, I’m excited to see
more of these and learn their
lessons regardless if they are
successful or fail. |
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Best Regards,
Carla Bailo
President and CEO
Center for Automotive Research
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