Weekly Intel Report: Mobility News

BY AUTOMOTIVE VENTURES | SEP 18 2023 | VIEW ONLINE ➡️

What We're Reading:

Elon Musk calls the framework for problem-solving “the algorithm.” 1. Question every requirement2. Delete any part or process you can 3. Simplify and optimize 4. Accelerate cycle time5. Automate. (💲Link)The Detroit automakers’ labor costs, including wages and benefits, are estimated at an average of $66 an hour. That compares with $45 at Tesla, which isn’t unionized and was founded 20 years ago. Meeting the UAW's initial demands would boost average hourly labor costs to $136 for the Detroit companies. (💲Link)Ford said in July that its electric vehicle business would lose $4.5 billion this year. If the union got all the increases in pay, pensions and other benefits it is seeking, the company said, its workers’ total compensation would be twice as much as Tesla’s employees. Union demands would force Ford to scrap its investments in electric vehicles, Jim Farley, the company’s chief executive, said in an interview on Friday. (💲Link)U.S. EV drivers are increasingly unhappy with public charging, as problems that include glitchy or inoperable equipment seem to be getting worse, not better. The U.S. government plans to launch a $100 million effort to repair and replace thousands of old or out-of-commission chargers. (💲Link)Remarkit estimates that Tesla's price reductions may have caused $5.5 billion in used vehicle value destruction. (Link)Almost half of car buyers would not purchase a vehicle that lacked Apple CarPlay or Android Auto. (Link)BMW, Ford and Honda will form ChargeScape, to unlock entirely new value that EVs can provide to the electric grid, while enabling EV customers to earn financial benefits through a variety of managed charging and energy-sharing services. (Link)Spurred by falling battery prices, EVs could hit price parity with fossil-fuel models in Europe in 2024 and the U.S. market in 2026, and account for two-thirds of global car sales by 2030. (💲Link)Modern vehicle technology has made driving safer, but can also veer toward tech excess that can actually harm drivers. Cars in the current generation can be pricier to repair, harder to understand and operate, and more likely to cause distraction and driver disengagement. (Link)In a blow to the autonomous trucking industry, the California Senate passed a bill that requires a trained human safety operator to be present any time a self-driving, heavy-duty vehicle operates on public roads in the state. In effect, the bill bans driverless AV trucks. AB 316 still needs to be signed by Gov. Gavin Newsom before it becomes law. (Link)This is the first time I've heard the term "Autobesity". Tiny particles from the wear of vehicle brakes, tires and roads already make up about half of the air pollution particles from traffic. (Link)The competitive vise squeezing Volkswagen from top to bottom and from the U.S. to China might evolve into its biggest crisis since the 2015 diesel scandal. The issues could be even harder to overcome and reflect the risks looming over Europe’s largest economy. (💲Link)Glenn Mercer provides a valuable comparison of Tesla vs. BYD's business models. (Link)The U.S. and Saudi Arabia are in talks to secure metals in Africa needed for both countries’ energy transitions, as the White House tries to curb China’s dominance in the electric-vehicle supply chain. (💲Link)

The Visual Capitalist helps us understand which electricity sources power the world. (Link)The world needs thousands of new grid battery installations to fight climate change. They rarely catch fire—but many people are skeptical of having one next door. (Link)The software-defined vehicle (SDV) will create more than $650 billion value potential for the auto industry by 2030, making up 15% to 20% of automotive value. Further, original equipment manufacturer (OEM) revenues from automotive software and electronics will grow nearly three-fold between now and 2030, from $87 billion to $248 billion. (Link)I wonder what top speed a hacked Tesla might achieve. The surge in popularity of electric scooters and other battery-powered vehicles has created a subculture of enthusiasts who are modifying their rides. (💲Link)EMVCo, a collaboration between American Express, Discover, JCB, Mastercard, UnionPay, and Visa, has announced the formation of an Electric Vehicle Open Payments Task Force. EMVCo is exploring how open payment solutions could help to promote a more consistent payment experience for EV users across charging networks. (Link)One year after the implementation of the new traffic circulation plan in the centre of Brussels: A quarter less motorized traffic and more than a third more cyclists. (Link)The Japanese government will create dedicated autonomous driving lanes, in preparation for the widespread use of level 4 autonomous driving. The government hopes to ease a shortage of bus and truck drivers and ease traffic congestion. (💲Link)The Ukraine conflict has been an incubator for deploying uncrewed aircraft in conventional combat. At first, soldiers and civilian volunteers adapted drones meant for photographing weddings to spot enemy movements and target or intercept them with artillery. Then the Ukrainians started 3D-printing claws to drop explosives straight from the drones and piecing together their own drones from scratch. This spring, they added FPV racing drones, or first-person-view drones, to their arsenal and within months experimented with using them at the same time to take out bigger targets. So-called swarms can overwhelm air defenses or help penetrate armor by bombarding vulnerable sections. (💲Link)UK researchers have produced a computer model of air traffic control in which all flight movements are directed by artificial intelligence rather than human beings. Reasons for involving AI in air traffic control include the prospect of directing aircraft along more fuel-efficient routes to reduce the environmental impact of aviation, as well as cutting delays and congestion, particularly at busy airports such as London’s Heathrow. There is also a shortage of air traffic controllers, who take three years to train. (💲Link)The "Black Hornet" is an exceptionally tiny and quiet drone flown by militaries that looks exactly like a little helicopter. It weighs less than 1.2 ounces, takes off from its operator’s hand, and streams back video to a screen so people can see what the drone sees and make decisions before approaching a structure that might have hostile forces or other hazards inside it. The drone’s low “noise signature” makes it virtually undetectable when it’s more than 10 feet away from people and 10 feet in the air. Because it’s so quiet and so maneuverable, the itty bitty drone offers a way to gather information about what’s in a space up to a mile away or further and stream that video (at a resolution of 640 by 480 pixels) over encrypted radio link back to the base station. The latest version of the Black Hornet also doesn’t need access to GPS to fly, meaning it can operate inside a building or in other “GPS-denied” spaces. It carries no weapons. (Link)

Have a great week,Steve Greenfield

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Notable & New

🎥 On this week's Future of Automotive segment on CBT News we examine the fascinating background of the founder of the latest publicly traded automaker, VINFAST - I love founder origin stories, and the background of founder Pham Nhat Vuong doesn’t disappoint. (💲Link)🎤 I learn something every time I watch an interview with Jim Roche from WarrCloud. Automotive Ventures is honored to be an investor. (Link)📢 I'm honored to be recognized as one of MOVE America's "Top Influencers" for 2023. I'll be up on stage in Austin in two weeks discussing the Future of Mobility! (Link)

Companies to Watch

🌟 Ascento provides autonomous security patrolling robots called Ascento Guards. I imagine that it won’t be long until we see robotics creep into the automotive dealership world. (Link)

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