The White House has made plans to host American business executives — including numerous CEOs tied to the automotive sector — in an effort to gain support for the stalled Build Back Better agenda. The meeting is scheduled to take place today, with President Joe Biden and company hoping to convince them to get behind the (revised) $1.75 trillion spending bill after it passed in the House but never made it through the Senate.

Seats have already been reserved for General Motors CEO Mary Barra, Ford CEO Jim Farley, and Cummins CEO Tom Linebarger. The rest are going to heads of manufacturing and technology companies, with a few noteworthy outliers. For example, the Biden administration has also invited the president of the Teachers Insurance and Annuity Association of America and the CEO of Siemens (a multinational entity that’s not based in the United States). Based on earlier statements from White House press secretary Jen Psaki, the meetings will take place in-person, bucking the Biden administration’s trend of hosting virtual events. (Read More…)

Intel has announced a $20 billion investment to transform a 1,000-acre plot in New Albany, Ohio, into the latest addition to its U.S. chip-manufacturing hub. Construction is scheduled to commence later this year with operations starting in 2025. But everyone’s wondering if it is going to be enough to rectify the pathetic state in which domestic vehicle production currently finds itself.  (Read More…)

Ford has teamed up with the payment company Stripe in a five-year deal to leverage what they’re calling “automotive e-commerce and payments”. According to marketers in the Glass House, this arrangement will help facilitate transactions for vehicle services and products such as EV charging.

And if you think it couldn’t lead to subscription services for features we currently take for granted in vehicles today, we have some seaside property in Montana to sell you.

(Read More…)

A divided U.S. Supreme Court has blocked the Biden administration’s vaccine-or-test rule that would have been enforced by the Occupational Safety and Health Administration (OSHA) and impacted roughly 1.7 million automotive employees.

“Although Congress has indisputably given OSHA the power to regulate occupational dangers, it has not given that agency the power to regulate public health more broadly,” the court explained. “Requiring the vaccination of 84 million Americans, selected simply because they work for employers with more than 100 employees, certainly falls in the latter category.”  (Read More…)

When the pandemic convinced practically every industry to press pause in 2020, supply chains became so crippled that just getting sectors of commerce rebooted became a challenge in itself. It was the business equivalent of a twenty-car pileup, with the automotive industry being hit particularly hard due to the complexity of its own supply lines. While the following year represented an improvement, production failed to stabilize to pre-pandemic levels.

The solution for automakers and dealerships was to begin demanding more money for cars. With vehicles in short supply, the value of new and used models blew through the roof. This move kept automakers largely in the black for 2021, despite a general inability (or unwillingness) to manufacture products at the normal pace. However, it didn’t help suppliers, who are haven’t been able to tack on the same premiums to individual components while still having to cope with rising economic hurdles. (Read More…)

Stellantis CEO Carlos Tavares has said that the growing pressures being placed on automakers to shift toward electric-vehicle production are unsustainable and run the risk of the public getting subpar products at decidedly higher price tags. While we’ve seen automotive executives lambast new energy vehicles before, it’s grown rarer as governments around the world have continued incentivizing their existence and investors have been pouring money on startups delivering literally nothing more than the mere suggestion of more electrification.

Tavares’s words come from the Reuters Next conference, running counter to the event’s prevailing narrative of encouraging technological progress and social change. Attendees tend to be political officials, heads of finance, NGO leaders, and business executives sympathetic to the cause. But the Stellantis CEO definitely went off-script when he listed some of the shortcomings of electrification, adding that he felt the costs were “beyond the limits” of what was realistically feasible. It’s his belief that pursuing electrification at the current pace doesn’t take into account the larger financial picture.  (Read More…)

Despite the semiconductor shortage having encouraged the automotive sector to repeatedly idle factories, word on the ground is that things are becoming more stable. Companies are seeing less production downtime overall and workers are reporting more reliable working conditions across the board. However, several automakers have continued to express concerns (e.g. Volvo), alleging that chip shortages could stretch deep into 2022, while the U.S. government ponders how to advance chip production in-country and become less dependent on Asian suppliers.

Commerce Secretary Gina Raimondo has been touring Michigan, meeting with union members and industry heads, and plans to urge Congress to move on a $52 billion in funding bill aimed at boosting domestic production. We’ve questioned the efficacy of the CHIPS Act before, primarily in relation to how the subsidies would be allocated. But there are new concerns that the plan will mimic the Biden administration’s EV subsidies by spending heaps of taxpayer money and giving union-backed organizations a larger cut.  (Read More…)

Since the hottest news surrounding the automotive industry today happens to be rolling updates about supply shortages, factory downtime, and how it’s not impacting manufacturing profits as much as anticipated, I’ve been diving back into studies and research pertaining to the future of the automotive industry. It’s a little more enjoyable for my own gray matter to process and might provide readers with a touch more to ponder than another story about how automakers are stalling production because an insufficient number of doodads were placed on a boat that’s waiting off the California coastline.

Earlier this week, we examined research exploring how much electric vehicles actually cost to run and that theme will persist. There’s a new study suggesting EVs boast lower repair bills than gasoline-driven alternatives. But there’s an interesting tipping point that occurs early in a vehicle’s lifespan that makes it happen. Before that, it’s cheaper on average to maintain something equipped with an internal combustion engine.  (Read More…)

With the volume having been turned down on just about every business sector imaginable, automakers have spent most of this year explaining how supply chain shortages are impacting production and making promises about electric vehicles. However, the rhetoric surrounding electrification has gotten so aggressive that it’s fast becoming another contentious issue, leading to vicious arguments as people square up to take sides. Part of this is due to the enterprising way in which zero-emission vehicles are being marketed and subsequently embraced by world leaders that don’t know jack about the manufacturing or the environment. Much of the discourse surrounding electrification (pro or con) lacks nuance and leads to businesses promising whatever they can in an effort to obtain your unquestioning belief.

For example, EVs are frequently promoted as boasting substantially lower operating costs due to there being no reliance on liquid fuel. Though finding the truth actually requires one to make a comparative analysis while taking into account how, where, and what you’re driving. There’s even a new study out from the Anderson Economic Group (AEG) attempting to determine the true savings of swapping to an EV where the researchers ultimately decided gasoline-powered cars were actually easier on the wallet. However, that likewise requires loads of clarifying context and conditional factors.  (Read More…)

Ford and General Motors are both slated to show their third-quarter earnings reports on Thursday.

Reports suggest that despite the negative impacts of the global semiconductor chip shortage, there may be positives for the companies, as well.

(Read More…)

A new study from the American Automobile Association (AAA) has found that rain can severely impair advanced driver-assistance systems (ADAS). Similar to how highway traffic slows to a crawl when there’s a sudden deluge, modern safety equipment can have real trouble performing when a drizzle becomes a downpour.

On Thursday, the motor club organization released findings from closed-course testing that appeared to indicate some assistance suites had real trouble seeing through bad weather. AAA reported that 33 percent of test vehicles equipped with automatic emergency braking traveling collided with a stopped car when exposed to simulated rainfall at 35 mph. The numbers for automatic lane-keeping was worse, with 69 percent drifting outside the lines. Considering the number of times the people writing for this website have anecdotally criticized ADAS for misbehaving in snow, sleet, rain, fog, or just from an automobile being a little too dirty, it’s hard not to feel a little vindicated.  (Read More…)

Annual automotive-content indexes have grown in popularity since trade restrictions and tariffs have become increasingly relevant issues. But they’re usually pretty generic, often providing the broad strokes of product origin while placing a few cars housing the most regional content on a pedestal. Not so with the Kogod School of Business’ 2021 Made in America Auto Index. While the metrics used are a little different from what’s found elsewhere, it offers a more comprehensive data set than other catalogs.

Though most people still like to know which vehicles were dubbed the “most American” and Kogod’s percentage-based scoring system makes it pretty easy to figure out. We won’t leave you hanging. For the 2021 model year, the Ford Mustang GT was evaluated as the car boasting the highest level of North American hardware and labor. But you have to get a manual transmission for the necessary 88.5 percent total domestic content rating (TDC). Select the automatic and that number drops to 51 percent, which is still better than the Mustang Mach-E’s paltry 15-percent score.  (Read More…)

Despite manufacturers still managing to turn a profit, the automotive sector hasn’t been in the best of health these last few years. Growth appears to have plateaued in most Western nations, encouraging companies to cater this business toward other markets, supply chains have also been negatively impacted by the pandemic — with semiconductor shortages hindering production schedules on a scale we’ve not seen since the Great Recession.

It’s a bad situation and rumored to get worse if the warning cries of economists are to be believed. But there’s also mounting evidence to support their claims. The Society of Motor Manufacturers and Traders (SMMT) recently reported that vehicle registrations in the United Kingdom fell by roughly 35 percent in September vs the same timeframe in 2020. This is relevant because the month typically represents the second-busiest period for the country and numbers were already low due to production stops created by coronavirus lockdowns.  (Read More…)

There’s a new automotive trend afoot, one where industry giants alter their iconic corporate logos so they’ll play better in a digital environment. Shadows and color gradients designed to give an image depth don’t always pop on a cheap screen the way they might on the glossy piece of paper and have encouraged manufacturers to transmission to flat, monochromatic icons that look bad everywhere.

But consistency isn’t the only reason to change logos. It’s also an opportunity to signal to customers that you’re evolving as a brand, which is why so many companies have associated their new iconography with the pivot toward electric vehicles. General Motors, recently ditched the logo it’s been using (more or less) unchanged since 1964 for a Bizarro World alternative that swaps the color pallet and makes the letters lowercase. Now it’s modernizing the emblem to be used for Cadillac’s electrified products until they gradually supplant the entire lineup.  (Read More…)

Volvo Cars has confirmed months of speculation by announcing that it’s planning to go public on NASDAQ Stockholm. On Monday, the automaker stated that it would be seeking to raise 25 billion Swedish kronor (nearly $2.9 billion USD) via the selling of new shares as a way to fast-track its electrification plans. Those include ensuring half its annual volume being represented by EVs and transitioning the majority of its sales stemming from online orders by 2025.

While the targeted IPO valuation is unknown, prior information coming from Zhejiang Geely Holding Group (Volvo’s Chinese parent company) suggested it was aiming for something in the neighborhood of $20 billion. We’ve also learned that the collaboratively owned Polestar would also be going public, except it will be using the always sketchy special-purpose-acquisition-company merger to help pump the stock.  (Read More…)