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

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.

Strides in the Autonomous Vehicle Sector:

• Baidu wins commercial licence for driverless taxis in Shenzhen 
• Zoox headcount grows as Amazon’s self-driving unit expands testing in Vegas 
• Exclusive: Troubled Robot Truckmaker TuSimple Says It May Sell Off U.S. Business 
• Remote-Driven Car Delivery Takes Big Step In Las Vegas 

Alan’s thoughts:

Mixed news from the AV front. Zoox and Baidu are making progress on robotaxi deployment in Las Vegas and Shenzhen. TuSimple’s US operations are on the block. Whistlecar service is making some headway in Las Vegas. Although delivery of these vehicles is controlled by remote drivers, this is an innovative solution for getting vehicles into the hands of recipients. AV technology remains a work in progress. Robotaxi service will likely be the first driverless experience for most consumers.

Volatile Market:   

• Lordstown Motors files for bankruptcy, sues Foxconn over $170 million funding deal 
• Ford conducts engineering layoffs in U.S. and Canada 
• Toyota’s output hits monthly record for May after 35% jump 

Alan’s thoughts:

Lordstown Motors recently filed for bankruptcy after Foxconn withdrew its investment in the start-up. Developing and producing autos for market takes an incredible amount of cash. Having a great product doesn’t guarantee success in the marketplace –although it certainly helps. Another sign of turmoil is Ford’s recent announcement of white-collar layoffs. This comes on the heels of GM’s recent buyout offers to salaried workers. OEMs are looking for the sweet spot that is maximizing profits while transitioning from ICE to EV propulsion. I don’t believe we have reached equilibrium just yet, so expect to see more ebb and flow with staffing. 

Advancements in Software:

• New generative AI software targets dealerships and automakers 
• GM buys Israel-based software startup to detect early battery defects 
• Transformed Ford Bronco is unlike any other — and could be game-changer for firefighters 

Alan’s thoughts:

Big things are coming to dealerships near you. Generative AI will make it easier for consumers to access product information. Soon, AI-supported conversations will inform potential customers without sitting at a dealership. Looking for a certain vehicle? Let AI help you navigate the best deals and closest dealers. 

Software advances are not limited to sales and marketing. GM is testing advanced algorithms to detect early battery failures or defects before they become a safety issue. Expect sophisticated software algorithms to grow as computing power becomes cheaper and user demands grow. OEMs are facing the decision of cloud vs on-board computing as a growing percentage of the fleet becomes connected.