#IndustryNews
Baltimore Bridge Collapse Has Major Implications for Automotive Sector
A cargo container ship exiting the Port of Baltimore collided with the Francis Scott Key Bridge early Tuesday morning. You’ve undoubtedly seen the footage by now, as well as the rampant speculation about what happened. As of now, nobody seems to know the full details of the incident but the ramifications should be relatively easy to predict. As a major shipping corridor for the United States, losing access means supply chain bottlenecks.
Bentley CEO Jumps Ship for Aston Martin
Bentley's former CEO Adrian Hallmark has broken with the company after making remarks that sales were down due to wealthy people buying fewer luxury products over concerns that it might upset poorer people living in those markets. That’s paraphrasing and his words were chosen much more carefully. However subsequent clarification from Bentley suggested that some markets were “experiencing continued economic and political difficulty” that would dissuade “showing displays of wealth.” It didn’t play well in the media and Hallmark has reportedly left the brand and since taken up with Aston Martin.
Why Did Trump Propose a 100-Percent Tariff on Mexican Auto Imports?
Earlier this week, Donald Trump suggested that he would impose a 100 percent tariff on select automobiles manufactured in Mexico — sending the industry into a minor tizzy.
Having done some digging into the matter, Trump only appears to be targeting Chinese vehicles being manufactured south of the border. The statement was made during the “Buckeye Values PAC” rally in Dayton, Ohio, and comes after Chinese automaker BYD announced plans to build a production facility in Mexico. While most of the resulting vehicles are assumed to be electric, BYD has stated its intention is not to sell them within the United States.
Report: Lithium Americas Breaks Ground in Nevada Mining Operation
Lithium Americas has broken ground on its Thacker Pass mining operations, potentially opening the door to what some are calling the largest lithium deposit in the entire world. However, it’s estimated to be another three years before refinement takes place and the materials can be adapted for use in battery powered products — including all-electric vehicles.
Driving Dystopia: Automakers Are Selling Your Driving Data to Insurance Companies
A recent report from The New York Times has accused automakers of selling customer driving data to insurance firms. While this is something many drivers had already been made aware of since the implementation of connected vehicles, the outlet claims that the amount of data has ramped up to a staggering degree. Not only is the amount of data being shared staggering, so is the specificity and degree to which it’s impacting people’s insurance rates.
The report focuses on LexisNexis’ “Risk Solutions” program formerly dedicated to keeping track of accident reports and moving violations. However, the division has expanded dramatically over the years and now oversees just about every scrap of relevant data modern vehicles can accumulate about you.
What Kind of Cars Do Women Actually Want?
On International Women’s Day, the Kia EV9 was announced as the “Supreme Winner” of the Women's Worldwide Car of the Year (WWCOTY) 2024. However, saying that this is the vehicle women most desire — let alone are willing to spend money buying — is probably a stretch.
Self Driving Probably Won’t Improve Until Artificial Intelligence Does
Following yesterday’s article about the IIHS suggesting the implementation of driver-monitoring as a way to mitigate lackluster advanced driving systems, many readers asked why automated driving still seemed so far behind in terms of development. After all, we have had companies promising the sale of commercially viable autonomous vehicles for years. But companies are nearly half a decade behind schedule with a public that has almost completely lost faith in the program.
What happened?
Senate Bill Seeks to Tariff Chinese Vehicles Out of Existence
This week, Senator Josh Hawley (R-MO) is introducing legislation to increase tariffs on imported Chinese vehicles this week with the stated goal of dealing with the “existential threat posed by China.”
The bill seeks to raise the base tariff rate from 2.5 percent to 100 percent, including vehicles owned by Chinese-based automakers that are assembled in places like Mexico. With Chinese exports already under a 27.5 percent tariff, the changes would effectively make those products prohibitively expensive.
Report: U.S. Prepping $540 Million for SK Group Semiconductor Factory in Michigan
The United States Department of Energy has confirmed plans to loan $544 million to South Korean tech conglomerate SK Group under the conditions it be used to expand semiconductor production in the Midwest. Finances have been earmarked for a facility operated by subsidiary SK Siltron CSS to expand a plant located in Bay City, Michigan, which had previously expressed plans to build more chips.
U.S. Rumored to Soften Emission Targets, Slow EV Adoption Push
Reports are circulating that the United States Environmental Protection Agency (EPA) will soften vehicle emissions targets against the stringent metrics proposed by the group in 2023. This follows lackluster EV adoption rates that run counter to the plan and pushback from dealer organizations, automakers, and consumer groups. But we need to take a closer look at the story, because things are rarely as simple as initially presented.
Imported Audi, Porsche, and Bentley Models Held Back Over Forced Labor Allegations
Thousands of vehicles manufactured under the umbrella of Volkswagen Group are being held at U.S. ports for allegedly violating the Uyghur Forced Labor Prevention Act (UFLPA). Enacted in 2021, the law is supposed to prohibit the utilization of slave labor in Western China. While the impacted automakers include Porsche, Bentley and Audi, we’ve seen plenty of brands being accused of leveraging forced labor in the Xinjiang region of China, where the country is said to have forcibly concentrated the Uyghur ethnic minority.
Report: Aston Martin Seeking Fourth CEO in Four Years
Aston Martin is reportedly reaching out to candidates to replace Amedeo Felisa as the company’s chief executive officer, potentially setting the business up to have its fourth CEO in four years. Felisa has headed the UK-based automaker since May of 2022 and inherited a situation where the business was already taking on sizable amounts of debt annually.
Porsche Casts Doubt Upon Combustion Ban Timeline
While we’re constantly hearing about tightening emissions regulations, the relevant timelines issued by government actors are rarely adhered to. Electric vehicle subsidies went from temporary to indefinite and combustion bans have gone from right around the corner to anyone’s guess. This is also true of the industry itself, which often makes bold promises designed to appease a subset of the public only to repeatedly move the target date back a few years.
With this in mind, Porsche’s CFO was recently quoted as saying European combustion bans will probably need to be delayed and there’s good reason to believe him.
Robotic Tire Changing Business Goes Bust
A Detroit-based startup hoping to normalize robotic tire changes has filed for bankruptcy, perhaps offering hope to all the humans worried that they're about to be displaced by automation. RoboTire, which launched in 2019, had stated its intention to speed up vehicle maintenance for auto repair shops, fleet operators and dealerships. Now its status is Chapter 7.
Opinion: Stop Subsidizing Electric Vehicle Programs
Hoping to increase the United States’ electric vehicle charging infrastructure, the White House has announced $623 million in grants to build more charging stations. This plays into the Biden administration's goal of having 500,000 public chargers in the U.S., and see 50 percent of all new vehicle sales become electric, by 2030. However, the federal government has already poured billions into the cause and it’s looking like an incredible waste of money during a period where citizens are growing increasingly concerned about the economy.
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