Automotive Industry Hot Topics with CAR President and CEO, Alan Amici –  (10/06/2023)

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.  

 Tech & Safety:

• Honda recalls 1.2 million U.S. vehicles for rear camera issue 
• Night Moves: How Does Night Vision Work on the 2023 Jeep Grand Cherokee 4xe? 
• Cruise robotaxi was second vehicle to strike San Francisco pedestrian, video shows  
• In Tesla trial over Autopilot fatality, lawyer cites ‘experimental vehicles’ 

Alan’s thoughts:

Safety systems that assist drivers are most valuable when thoughtfully integrated into the vehicle. Systems that are reliable, minimize false positives, and utilize an intuitive driver interface offer the best chance of saving lives or reducing injuries. Even the most basic systems such as rear cameras, require defect-free components, proper assembly, and robust design to ensure reliability. As systems become more complex, the challenge of ensuring a reliable system increases. For the industry to best serve its consumers, automakers should cooperate with data sharing for safety systems.  Commonizing driver interfaces can improve consumer awareness and trust. Sharing corner cases for AVs can help accelerate industry learning without ceding competitiveness. It is time to “zoom out” and capture the bigger picture of saving lives. 

Third Quarter Reports & UAW Strike: 

• US new vehicle sales jump in third quarter as UAW strike casts shadow 
• Rivian reports better-than-expected EV deliveries for the third quarter 
• HYUNDAI-GENESIS: EVs deliver Q3 boost 
• Tesla 3Q sales rise 27% but fall short of analysts’ estimates due to price cuts and factory downtime 
• Ford’s third-quarter US auto sales rise on pickup, crossover SUV demand 
• GM reports 3rd-quarter gain of 21% with pickups, new SUVs driving sales 

• Ford makes seventh contract offer to UAW: ‘Strongest’ yet 
• GM secures new $6 billion credit line as UAW strike costs reach $200 million
• United Auto Workers, Mack Trucks reach tentative agreement 
• Ford makes new offer in US labor dispute, GM furloughs more workers 

Alan’s thoughts:

A robust Q3 for US auto sales shows healthy demand for ICE, hybrid, and EVs. However, Q4 for the Detroit 3 does not look good as a result of the ongoing UAW strike. In the meantime, Toyota, Hyundai, Rivian, and Tesla keep rolling along. Households affected by the strike are tightening their belt to preserve savings while facing a strike with an uncertain endpoint. Automakers and suppliers are also experiencing repercussions, as revenue dries up while plants are idled. Tier 2 and 3 suppliers, operating without the benefit of deep pockets, are doing their best to gut this out. It is time to reach a new labor agreement and get back to the business at hand of designing and building competitive, world–class vehicles.