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CAR | Don't miss this week's Hot Topics

Michigan Business Network
June 4, 2021 5:00 PM

cars

Electric vehicles continue to dominate headlines, with much of the conversation recently focusing on labor, policy, and equity implications. Regarding the global automotive workforce, we are seeing concerns over layoffs from the latest plant shutdowns and skilled worker shortages. Additionally, we are continuing to track news in both the autonomous vehicle and data privacy spheres.
As the microchip crisis continues to plague the automotive industry and beyond, we have migrated all news updates related to the shortage to our website. You can stay informed on the automotive impact of the global chip shortage by visiting here.

If you missed my previous Hot Topics email, you can read it here.

We would love to hear from you and welcome your questions at any time. If you're interested in sharing your thoughts with us on hot topics, or if you would like to ask us a research question, please reach out to Katie Ramsburgh.
 

Hot Topics of 5/31/2021 - 6/4/2021

EV Revolution: Labor, Policy, & Equity

My thoughts:

There are 2 stories here – 1 related to the democratization of mobility and the other related to the auto union sustainability.

As I’ve spoken in previous hot topics notes, EV’s are priced out of the range of the average American buyer at the current time. In fact, internal combustion engine vehicles are now priced out of range of the average American. This means we have an entire segment of the American population without access to a vehicle and this problem will only grow as prices rise. Mobility means equality in terms of jobs, health care, and education so this problem must be addressed.  It’s not an EV problem, but it’s an equity problem. We need to have policies and public-private partnerships to make mobility affordable to all. This is not a simple problem but very complex and we need to think differently from the usual solution of public transit, first mile/last mile shuttles and so forth.  What if transportation was part of an educational package at the after K-12 stage? What if employers offered transportation as part of an employment package? Would this not offset some concerns with the cost of unemployment and lack of consistent workforce?  We need to look at the cost of NOT doing some of these potential solutions and do the right thing for this generation and several more to follow.

The unions are very concerned about the electrification shift as they keep hearing there are fewer parts and less complexity and this means fewer workers will be needed to assemble EV’s. Beyond this, Industry 4.0 is revolutionizing the assembly process and more automation and AI are going into these new EV plants.  All of this bodes to workforce reduction. BUT, I like to think of it as a workforce “shift”. We will need workforce in manufacturing, but the skills required will be different. Rather than be worried about unionizing more plants, the unions need to focus on the training needed to ensure stability of their members. Working hand-in-hand with automakers to assess the workforce needs and put plans in place to create this new workforce from existing team members is key. Why not think of a way to put precious union dues and other funds from the automakers and start-ups toward this reskilling and upskilling?  Quite frankly, this is just the first round of disruption and there will be many more as technology exponentially develops.  Lifelong learning and training is the new “buzzword”.


Automated Vehicle Safety & Technology My thoughts:

I love the first byline as this has been in more of my presentations that I can count. Lidar is very important to autonomy – period. Lidar cost and complexity is dropping quickly which makes the usage of this technology much more affordable for many companies.

Autonomous vehicles are very technologically complex and requires quantum computing in simulation, AI, and machine learning as we’ve never accomplished before. We need to do more simulation and more road testing (contained and public) to test edge cases and “one-offs” so the computer programming can learn and improve.  Safety is paramount and no one will launch these products without the proper safety assurances.

CAR has a great webinar on this subject next week entitled: “Bridging the Gap to Safe Autonomous Systems” where we will discuss the importance of cloud based data and analytics, simulation on and on road testing, and actual deployment of AV shuttles. It will be a holistic discussion of where we are and what else is needed. Details are at the bottom of this e-mail so please join us.


Global Automotive Workforce My thoughts:

This refrain is everywhere today and not just in automotive.  We don’t have enough workforce to manage the jobs that are available.  We see bonuses as never before to lure workers.  We keep hearing after the unemployment benefits return to “normal” levels, this will even out.  I think we are being too optimistic.  Some people have realized that can “make it” on one salary and don’t want to return to their previous lifestyle.  Some people have moved to the gig economy and are doing better “on their own”.

But, the main reason of my concern is the lack of “bendability” in the workforce requirements in manufacturing and other institutions.  We need to move the thinking from the usual ways to attract workforce to those that are more long-lasting.  People are motivated by feeling ownership in what they do, respect for their individual situations, and pride in working for a particular company. They must feel valued and listened to. So, rather than offering “mommy shifts” and “on-site daycare”, listen to the workers about what they need. There is probably and “unusual” solution that makes you nervous that might just end your workforce dilemma. CAR would love to help you find it.


Data Privacy My thoughts:

This is just the tip of the iceberg on this subject. As more businesses want your personal data, human nature is to be more skeptical. We have all hit the “I accept” button easily, but now apps are asking to track other apps on your phone to “tailor” things for you. This borders on intrusive and people will realize it. It’s really important that if you want to utilize personal data, there must be a win-win for both sides.  People will submit to sharing their data IF it makes their life better in some way. Think about that before asking to gather the data.

The privacy portal idea from Toyota is just the start in thinking about this issue in a thoughtful way. Beyond this, each country is different in requirements and it’s vital to know what acceptable legally and socially before you proceed to request to utilize the data. More regulations are coming in this space so be prepared.

Best Regards,

Carla Bailo
President and CEO
Center for Automotive Research
 

Learn more about safe autonomous systems from dSPACE, AWS, & Optimus Ride:

Bridging the Gap to Safe Autonomous Systems

Wednesday, June 9, 2021  |  11:30 AM ET

Automated vehicle systems are quickly becoming a reality on our roads. While automated vehicles promise to bring many benefits, such as improved safety and reduced congestion on the roads, they also raise systematic, regulatory, and even ethical questions. The transition to automated systems must be done responsibly and through consideration of more than technology.

Join CAR’s President and CEO, Carla Bailo, on June 9, 2021, at 11:30 AM ET as she discusses how to move the needle on the safety of autonomous systems with Tino Schulze, Executive Vice President, dSPACE, Bryan Brezdivin, Worldwide Autonomous Vehicle Specialist, AWS, and Sean Harrington, CEO, Optimus Ride.
Register

Upcoming event:

25th Anniversary AWAF Swinging “FORE” Scholarships Annual Golf Outing - Nine, Wine and Dine

Friday, August 27, 2021  |  Forest Lake Country Club, Bloomfield Hills, MI

 
For 25 years, Automotive Women’s Alliance Foundation’s golf outing has benefitted AWAF’s scholarship and STEM programs. These initiatives are specifically designed to increase female exposure and inspire participation in the mobility space as the industry gears up to race ahead with electric mobility and self-driving cars. As of May 2021, AWAF has awarded $489,500 in scholarships to 196 women pursuing careers in the automotive and mobility industry. 
 
Golf outing starts at 4 pm with registration and shotgun start at 4:30 pm and ends with an evening celebration that includes a silent auction and awarding scholarships. Those who do not golf are welcome to attend the evening celebration beginning with Happy Hour at 6:30 pm.

Plus, sign up for the CAR Management Briefing Seminars and you will receive a discount code for $25 off for individual registration and $100 off for team registration for the AWAF’s golf outing.
 
Register

  • Center For Automotive Research

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