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Electric Vehicles

Elegant Gathering in the Apricot Garden (Xie Huan Ca. 1437)

Made in China 2025 and Intellectual Property Protection

By | Electric Vehicles, Mergers & Acquisitions, Supply Chain | No Comments

China IP Protection Practices Snapshot and Predictions

Product companies and research organizations have long complained about theft of intellectual property (IP) and lax enforcement of intellectual property rights in China. Forced technology transfers have been another major grievance of foreign companies setting up local operations in China.

Despite the potential risks of IP leaks and bureaucratic limitations, the lure of the enormous Chinese consumers market is impossible to resist and for some companies it may very well represent an essential component of their long-term growth strategy.

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Airplane Over Train (Natalia Goncharova, 1913)

The Automotive Industry: On the Road to Autonomy — Automotive Industry Snapshot and Predictions

By | Automotive, Autonomous Cars, Connected Cars, Electric Vehicles, Strategy, Uncategorized | No Comments

Value Chain Disintermediation: Electronics and Software are the New Automotive Supply Chain Kings

The auto industry’s century-old drive to gain efficiencies, accelerate production output, reduce waste and recoup working capital through lean techniques has also led to a strong cultural bias towards inside innovation and complex love-hate relationships with a network of select suppliers of mostly mechanical and electrical subsystems.

But today, electronics and software are the key to brand differentiation, customer affinity and market competitiveness. Electronics manufacturers are quickly becoming the new kings of the automotive value chain as the center of gravity is shifting from complex mechanical systems and passive safety features to sophisticated electronics and software. New entrants and outside innovators are redefining the traditional roles in a value chain structure that has changed very little in decades and are changing the familiar landscape.

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Edison Baker Electric Car c. 1895

The Car of the Future: Electrified, Connected and Autonomous

By | Automotive, Connected Cars, Electric Vehicles | No Comments

The Impact of Vehicle Electrification and Connectivity on Electrical System Design

Industry in Flux

Just over 100 years ago, Henry Ford disrupted the auto industry of the time with the introduction of the mass-production moving assembly line. To say that the auto industry is again in flux is almost cliché.

The confluence of technology and business trends in play is having a profound effect on the future of the mobility industry.

Electrification

Electric propulsion is still in its infancy. Today, less than 5% of vehicles sold in the US use electric propulsion. But consumers recognize the impact of EVs on the environmental. With the introduction of EVs with greater travel range and more affordable purchase price, adoption will accelerate. A survey from AAA shows that 20% of drivers want an electric vehicle and will likely choose an EV for their next vehicle, up from 15% percent in 2017.

Autonomous Driving

The race to achieve fully automated driving is heating up rapidly. Despite many uncertainties concerning technology maturity, regulatory requirements, and market adoption, practically all automakers and major suppliers, as well as scores of small upstart companies, want to take part in this race.

The hope to capitalize on the early waves of commercialization and consumer adoption, and the accompanying boost to the brand lead to an increase of 33% over 5 years in R&D in the automotive sector.

Connectivity

Today’s consumers demand connectivity, sophisticated mobile apps and rich online content. An Autotrader study shows that connectivity has become a major factor in car buying decision, and that 48% of car buyers prioritize in-vehicle technology over brand or body style.

OEMs are now shifting in this direction, adding connectivity and in-vehicle features across their portfolio, including non-premium brands in an effort to better align their offering with the changing market demand, especially of millennial consumers. Read More

Edison Baker Electric Car c. 1895

End of Tax Credit is Looming: Implications for Electric Vehicle Manufacturers

By | Automotive, Electric Vehicles | One Comment

Did you put down money for a new bright red Tesla Model 3? (Or did you skimp and got the standard any-color-so-long-as-it-is-black car?)

Tesla’s Model 3 order book backlog has been growing longer. The company has confirmed having about 420,000 Model 3 reservations, which, at the current production rate, will take nearly two years to deliver. Tesla has been struggling for more than a year to ramp up manufacturing to meet the demand. The company is targeting production rate of 6,000 per week, which is a significant improvement, albeit still only about 65% of the factory’s capacity when it was co-owned by General Motors and Toyota.

To accelerate production, Tesla reduced the number of available Model 3 configurations from thousands to about 100, which means you will not be able to get the exact car of your dreams. And by the time your car is ready to be delivered to you, the federal tax incentive you were counting on may be gone. Read More

Crystal Ball Predictions

Three Connected Car Questions

By | Automotive, Electric Vehicles, Telematics | No Comments

Three Connected Car Questions for 2016

Q: Will autonomous cars be available in 2016?

No, they won’t. Automakers are making steady progress in autonomous navigation and driving technologies, and some of the building blocks are being gradually introduced in new cars. We will see advanced driver assistance systems (ADAS) technologies offered in a growing number of cars in the form of automatic emergency braking, adaptive cruise control, lane-keeping assistance and self-parking.

But it’s unlikely that self-driving cars will be roaming our streets for at least another 5 years. By 2020 we might see low speed self-driving cars or people-moving pods in limited-use applications such as company campuses, airport transfer services and retirement communities. Establishing dedicated paths or highway lanes for autonomous vehicles will accelerate the adoption and utilization of driverless cars.

Q: Will Google build an autonomous car?

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