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Automotive

Tesla: to Recall or Not to Recall?

By Automotive, Autonomous, Connected, Electric, Shared Vehicles, Service Lifecycle Management (SLM) No Comments

NHTSA issues a recall for Tesla Model S. Elon Musk: “the word ‘recall’ needs to be recalled.”

The back and forth between Elon Musk and NHTSA about Tesla Model S fire incidents and other safety related issues continues. Musk maintains that the recent software update to change the Tesla Model S ground clearance in order to reduce the likelihood of debris damage, of the type that might have led to battery damage and fire, is not a “recall.” Tesla initiated the software update voluntarily, before NHTSA completed its investigation and ruled in on this issue. At some point during NHTSA’s investigation, Musk twitted: “the word ‘recall’ needs to be recalled.”

Musk is, of course, correct that Tesla is able to reduce the headache to consumers and the cost that are associated by recall campaigns by updating the vehicles software over the air, an technique referred to as firmware-over-the-air, or FOTA.

However, a campaign (this is NHTSA’s formal term for ‘recall’) to rectify a design flaw or a quality defect is still a recall, especially if required by NHTSA and is subject to the TRAED Act of 2002.

On January 13, NHTSA issued a recall order number 14V006000t to address overheating charging plugs in Model S. Tesla will issue an over-the-air update to reduce the charging current, and will mail owners a replacement charging adapter equipped with an internal thermal fuse.

Again, Tesla is demonstrating the use of technology to improve the efficiency and efficacy of archaic practices used in the automotive industry. But a recall is still a recall, and even Tesla isn’t immune against design and quality issues that might require a recall campaign from time to time.

Electric Vehicles Sales in 2040: Meager 2%

By Automotive, Autonomous, Connected, Electric, Shared Vehicles, Manufacturing No Comments
By 2040, Sales of electric and plug-in hybrid vehicles will amount to a meager 2% of overall car sales

Source: U.S. Energy Information Administration Annual Energy Outlook 2014 (Early Release Overview)

By 2040, Sales of electric vehicles and plug-in hybrid vehicles will amount to a meager 2% of overall car sales, according to a new forecasting model from U.S. Energy Information Administration. Main reasons: falling energy price and improved fuel economy and cleanliness of gasoline engines, which will further improve by micro-hybridization in nearly 50% of vehicles sold in 2040.

 

The Mission of Tesla

By Automotive, Autonomous, Connected, Electric, Shared Vehicles One Comment

Tesla is taking unprecedented steps in response to media frenzy and consumer concerns about Model S catching fire as a result of damage to its battery pack. As Musk points out in his blog post titled The Mission of Tesla, the rate of fire incidents in gasoline cars is much greater than Tesla’s record thus far. Nevertheless, the company is taking a number of steps to confirm the root causes of these fires and is already taking measures to reduce the likelihood of these extremely rate incidents.

Even more astounding is Musk’s announcement that Tesla will amend its warranty policy to cover damage due to a fire, even if due to driver error. This is truly unprecedented. Sure, Tesla’s brand and electric vehicles technology always invite criticism (too often from the uninformed “I am not an automotive engineer but…” types) and should be explained and defended repeatedly. But to my recollection, no other OEM, and very few manufacturers of other products, ever stood so firmly behind their brand to offer warranty coverage for damage caused by the driver.

 

Survey: Are Drivers Ready to Trust Driverless Cars?

By Automotive, Autonomous, Connected, Electric, Shared Vehicles, Telematics No Comments

A recent study commissioned by carInsurance.com found that most Americans would not give up Driverless Cars Survey 1driving even if autonomous cars were available today. While one fifth of the 2,000 licensed drivers surveyed said they would gladly turn over the keys, most still have concerns about the skills and capabilities of a computerized chauffeur.

The distrust in autonomous driving technology does not seem to waver despite the frequent headlines that showcase Google’s self-driving cars and Tesla’s highly computerized electric cars. The drivers responding to this survey prefer to be sitting in a driverless car made by one of the traditional OEMs like Ford, GM or Toyota: with or without a human drive, it’s still a motor vehicle.Driverless Cars Survey 2

These data points show that even if driverless cars were available today, the convenience of autonomous driving isn’t going to be enough to overcome the technological concerns of the general public. However, when presented with the option of significantly lower insurance rates for autonomous – and safer – cars, those surveyed had a change of heart. More than a third of drivers said an 80% discount on car insurance rates would make purchase of an autonomous vehicle “very likely,” and 90% said they would at least consider the idea.

Now the question is: what will those ex-drivers do with the additional free time? Not, much, it seems. Driverless Cars Survey 3More than a quarter will text or talk with friends and 10% will just sleep.  Only 7% will use the time to work.

 

 

Ford Car Owners are More Loyal than Toyota’s (or Mercedes, or BMW)

By Automotive No Comments

The charts below show U.S. Consumers’ loyalty during the fourth quarter of 2012, as reported by Experian Automotive. While Ford leads in customer loyalty, GM and Toyota loyalty rating are very close. Furthermore, Toyota is slowly recovering from customer defection following a series of quality issues in 2009-2011, and might eventually regain its place at the top. Another factor that might change the balance going forward is the increased loyalty in the luxury brands market, but seems to have skipped Lincoln, Ford’s high end brand.

OEM LoyaltyBrand Loyalty
Source: Experian Automotive

OEM loyalty indicates the percentage of car owners that purchased a car from the same OEM, but not necessarily the same brand. For example, if Ford Focus owner buys a Ford Fusion, or an Audi owner buys a Volkswagen.
Brand loyalty indicates a new purchase of the same brand, such as a Chevrolet or a Lexus.