HOT TOPICS WITH CENTER FOR AUTOMOTIVE RESEARCH CEO 05/12/2023

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.

Recall Risks:

• Auto industry’s hurry-up mode increases recall risks 
• Why GM is killing the Chevy Bolt — America’s cheapest EV — amid record sales 
• U.S. electric-vehicle startups set for another quarter of steep cash burn 

Alan’s thoughts:

Designing, developing, and producing vehicles takes a lot of cash. While electric propulsion technology lowered many entry barriers for automotive start-ups (such as engine and transmission development, emissions systems design and testing, etc.), the auto business remains capital-intensive. Although Tesla appears to have achieved profitability, it was operating in the red for many years. 

Expect a bumpy ride for the next few years as automakers grapple with managing an increasing level of software complexity. Over-the-air (OTA) updates will allow manufacturers to deploy improvements to customers without dealer visits but expect increased reliance on OTA usage as the need to update software grows over time. 

Self-Driving Trucks & Vehicles:

• Self-driving trucks land in crosshairs of California labor push 
• Russian oil producer sets self-driving trucks to work on Arctic tundra 
• Waymo robotaxis make more inroads in Phoenix, San Francisco 

Alan’s thoughts:

Legislators in California are seeking to ban self-driving trucks from using public roads without a human driver present. This could significantly dampen the state’s role in developing self-driving technology. Protecting jobs and promoting safety is part of the motivation. If the US is to continue to hold a leadership position in automated vehicle technology, we will need development-friendly legislation to reduce barriers to testing while maintaining public safety.

Green Hydrogen:

• Green hydrogen company Nel to build new Michigan plant 
• Hydrogen is key to Nikola’s rebrand. It needs more cash 
• Trucking, freight companies face EV charging, hydrogen fueling gaps as they electrify their fleets 
• Elon Musk May Not Like It But Plug Power Plans Hydrogen-Fueled EV Charging Stations 

Alan’s thoughts:

Can green hydrogen fulfill its promise of abundant, clean energy for transportation? It appears to be a more efficient solution for long–haul trucking with short refueling times and lightweight propulsion when compared to battery electric vehicle (BEV) configurations. The hydrogen infrastructure in the US is even more nascent than the EV charging network, so companies must contemplate how to refuel their fleets reliably and economically. I do not see hydrogen powering passenger cars en masse for years to come, but trucking is a killer application. The key is figuring out how to get it in the tank.