Chip Shortages Could Cripple Global Auto Makers Until 2023, While More Negatives Gather

Even the most ardent glass-half full defenders of the automotive industry might be getting a bit nervous as more existential surprises spring out of left-field.

Automotive industry investors braved the coronavirus-inspired sales slump in 2020 hoping for a sharp “V” shaped recovery. The virus returned and the “V” was flattened, but long-range forecasts still promised sunlit uplands, soon. Now the industry has been blind-sided by another crippling, unscripted guest, a shortage of microchips. This seemed at first like maybe a month-long problem, but it could last until 2023, according to industry analysts at Fitch Solutions.

At least these problems look solvable and promise a return to profitable business as usual.

Except for this new bombshell from investment bank Morgan Stanley
. Traditional automakers seeking to revolutionize their production by switching from internal combustion engines (ICE)

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Auto industry wants more government support for electric vehicles

The leading lobbying group for the U.S. auto industry is calling on policymakers to help support the adoption of electric vehicles through incentives, infrastructure investment and other regulatory means.

Without suggesting a cost for such EV stimulus programs, the Alliance for Automotive Innovation said now is the time for “substantial, long-term investments in electrification, as well as advanced safety technologies,” according to a new report released Tuesday. It describes the industry as being “on the cusp of a transformative moment” regarding electric and autonomous vehicles.

Automakers have refrained from seeking much government assistance during the coronavirus pandemic, largely due to the fact that consumer demand for new vehicles has been relatively resilient through the global health crisis.

The report comes a day after the Electoral College voted to cement Joe Biden’s victory over incumbent President Donald Trump. Biden has voiced far more support for EVs as well as infrastructure

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Android Auto vs Android Automotive: What’s the difference?

Welcome to SHIFT Basics, a collection of tips, explainers, guides, and advice to keep you up to speed with mobility tech.

There was a time when having an infotainment system and satellite navigation in your car was a luxury. Now, thanks in part to computer components being more affordable and open source mapping projects, in-car entertainment systems are far more common.

Advanced infotainment systems are so common they can create a bit of a learning curve when getting into an unfamiliar car. What’s more, in-car systems often lack features that are common on other pieces of tech, like popular entertainment apps.

Thankfully, there are solutions that aim to standardize the in-car experience and bring supreme functionality with less of a learning curve. In this article we’re going to take a look at two of those options: Android Auto and Android Automotive.

[Read: A really simple introduction to one-pedal driving

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How Tesla defined a new era for the global auto industry

Tesla’s rapid rise to become the world’s most valuable carmaker could mark the start of a new era for the global auto industry, defined by a Silicon Valley approach to software that is overtaking old-school manufacturing know-how.

Tesla’s ascent took many investors by surprise. But executives at Daimler AG, the parent company of Mercedes-Benz, had a close-up view starting in 2009 of how Tesla and its chief executive Elon Musk were taking a new approach to building vehicles that challenged the established system.

Daimler, which bears the name of the man who invented the modern car 134 years ago, bought a nearly 10% Tesla stake in May 2009 in a deal which provided a $50 million lifeline for the struggling start-up.  

That investment gave Mercedes engineers an inside view of how Musk was willing to launch technology that wasn’t perfect, and then repeatedly upgrade it, using smartphone-style over-the-air updates,

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