HOT TOPICS WITH CENTER FOR AUTOMOTIVE RESEARCH CEO 07/21/2023

On a bi-weekly basis, the Center for Automotive Research (CAR) welcomes our audience to decompress with our President and CEO, Alan Amici, as he covers and shares his thoughts on the latest Hot Topics happening in the automotive industry. If you would like to receive this bi-weekly insight into critical industry issues you and your organization are facing, sign up for our mailing list here to get Hot Topics sent directly to your inbox.

The Price of Ownership:

• New, used car prices appear to be leveling off; good news for car buyers 
• Rejection rate for auto loans at all-time high 
• Ford cuts F-150 Lightning prices by several thousand dollars 
• Berger: Record levels of electric mobility: 2022 saw more electric cars sold worldwide than ever before 
• Electric Vehicle Prices Fall as Automakers Raise Production 

Alan’s thoughts:

Are EVs just for the affluent? If the US is serious about reducing CO2 emissions from vehicles, EVs need to be affordable. We’re in a strange period of time coming out of a pandemic, rebuilding (or rethinking) supply chains, migrating to new propulsion technology, and addressing sustainability concerns. That’s taking on a lot of challenges concurrently. Being a low-cost producer is paramount to profitability, and it will be difficult to get the necessary scale if EVs remain out of reach for all but the rich. 

The Road to Self-Driving Vehicles: 

• Cruise ad bashing human drivers criticized by top safety advocate 
• Elon Musk says ‘major OEM’ may license Tesla’s self-driving vehicle software  
• Musk downplays margin pain on road to self-driving future 

Alan’s thoughts:

Will AVs be safer than human-driven vehicles? That’s the point of handing over the driving tasks to a supercomputer-armed, sensor–laden vehicle. Otherwise, why bother? We are not there yet, and it may be another ten years before consumers can purchase their own level 4/5 capable vehicle. In the meantime, watch the industry develop the capability to meet or exceed the safety performance of human-driven vehicles. The industry is working toward a safer transportation future, brought to you by bright, innovative engineers. 

Global Market:  

• Focus: Made in Russia? Chinese cars drive a revival of Russia’s auto factories 
• Factbox: What has become of Western carmakers’ assets in Russia? 
• Dutch SPAC in advanced talks to acquire electric vehicle group 
• Vietnam EV maker VinFast to start construction of US factory next week 

Alan’s thoughts:

Before we start a conversation about the rebirth of globalism, we need to consider the US market. It’s big, and automakers around the globe want a piece of it. And if the price of entry is constructing a local assembly plant that brings along good–paying jobs, so be it. In the long run, this could be a feast for consumers, with competition driving down prices while bringing a broad selection of choices to potential car buyers. This scenario suggests the importance of being a low–cost producer if vehicles are to be affordable and profitable.