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CAR | Let's Discuss This Week's Hot Topics

Michigan Business Network
May 24, 2021 8:00 AM

carsThis past week’s news focused heavily on President Biden’s green agenda and the push for electric vehicles. While Biden focuses on EV incentives, a growing concern over the future of gas taxes in an EV-dominated future continues to gain more traction. We are also tracking newly announced partnerships in the automotive industry and news related to vehicle safety.

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 5/17/2021 - 5/21/2021

Biden Administration

My thoughts:

First, I must say I really enjoyed seeing the President behind the wheel of an F-150 and speeding along. He looked like he was having a ton of fun which bodes well for the success of the product and the suitability for the average driver. The subsequent launch of this project later in the day and the number of pre-sales recorded shows the demand for this kind of product.

The sticky point is going to be how to make all EV’s affordable for all Americans. Even with tax incentives or rebates, the sticker shock is too much for the median wage earner in the US. How can we utilize these EV’s in a “shared and inclusive” business and economical package? We have to think far beyond the typical ownership model to ensure the democratization of mobility.

Gas Taxes and EVs

My thoughts:

This issue is one of my favorite topics right now and one that I’ve been talking about for some time. DOT’s have been on a budget since fuel economy has improved year over year, and electrification will exacerbate this situation. It’s also a political hot potato as nobody wants to increase the fuel tax, put in more toll roads, or put in the infrastructure for a VMT/road usage fee.  However, we all want good roads, bridges, and “smart” infrastructure, all of which cost real dollars. Somebody has to pay for this, and it boils down to everyone in some way.

We will see several pilots similar to those in Oregon and Utah, which are trialing a usage-based fee or increasing usage of toll roads and “higher fee speed lanes” like in Florida and Virginia. These will give us some good data to determine what works best. BUT, we must discuss this as a country and not have another situation of transponder duress as different systems don’t communicate across state lines…let’s make this payment seamless regardless of where you travel. It will require states working together and DOT’s reaching agreements for the good of all – this is novel, but it is needed. Data geeks – this is your time to shine and propose ideas!

Industry Partnerships

My thoughts:

I think we should start a betting pool on how many partnerships we will see each month. They will continue to grow as technology, and consumer demands expand into improved HMI, electrification and multi-propulsion systems, CAV’s, and beyond. Mobility services with the linkage of auto companies, micromobility, ride-sharing, and more will grow, especially when this pandemic ends and equity matters more than ever. I mentioned earlier about the democratization of mobility, and this will require unique solutions and partnerships. The value and ownership of data will become an integral part of this new mobility mode. Look for many more on the horizon.

Vehicle Safety My thoughts:

This topic is one that we must get a handle on, or it will be the Achilles heel of the autonomous world. The future is a mobility ecosystem where pedestrians, bicyclists, motorcyclists, delivery bots, and more need to be safe and protected. So, autonomous cars alone can’t solve this equation. Intelligence needs to be managed in the environment and ready without latency to protect those most vulnerable. This task won’t be easy. We need to start with some clear guidelines for those products currently on the road. Let’s have common nomenclature for ADAS systems, common certification protocols for ADAS systems, and better training for drivers. Further, it needs to be crystal clear what the car can and CAN’T do, and this should be required for all companies putting a product on the roadways.

Collaboration amongst the mobility industry is really needed on this topic as government agencies need support to generate these guidelines and regulations. The end goal is safety on our roadways and in our mobility ecosystems…period.

Bailo-2 (2)Best Regards,

Carla Bailo
President and CEO
Center for Automotive Research

Upcoming virtual events:

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. How can the risks of automated systems be minimized? The transition to automated systems must be done responsibly and through consideration of more than technology. Public policy and human capabilities must also be considered. The automotive industry is currently undergoing a paradigm shift in how to develop these automated driving systems.

Join CAR’s President and CEO, Carla Bailo, 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.

Join us June 9, 2021, at 11:30 AM ET for this dynamic webinar and register below

Register
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