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Self-driving cars' problem (besides making them work): Too many players, not enough profit

For an detailed, interactive graphic about the many players in autonomous cars, click here. FRANKFURT/DETROIT — BMW and Daimler, the world's top luxury carmakers, have announced alliances with suppliers, talking up the virtues of having a bigger pool of engineers to develop a self-driving car. But another motive behind these deals, executives and industry experts told Reuters, is a concern that robocars may not live up to the profit expectations that drove an initial investment rush. Carmakers are increasingly looking to forego outright ownership of future autonomous driving systems in favor of spreading the investment burden and risk. The trend represents a clear shift in strategy from little more than a year ago when most automakers were pursuing standalone strategies focused on tackling the engineering challenge of developing a self-driving car, rather than on the business case. "Although it is a substantial market, it may not be worth the scale of investments currently being sunk into it," said a board member at one of the German carmakers, who declined to be identified because the matter is confidential. Dozens of companies — including carmakers and tech firms like Google and Uber — are vying for a market which, according to consulting firm Frost & Sullivan, will only make up about 10 to 15 percent of vehicles in Europe by 2030. There are sure to be losers. "It's impossible for me to believe there will be 50 successful autonomous vehicle software producers," said John Hoffecker, global vice chairman of Michigan-based consulting firm AlixPartners. In July last year, BMW became the first major carmaker to abandon its solo development of self-driving cars in favor of teaming up with chipmaker Intel and camera and software manufacturer Mobileye to build a platform for autonomous cars technology by 2021. The decision followed a trip by senior executives to visit startups and suppliers to gauge BMW's competitive position. "Sitting at other companies, one rattles off the technological challenges and safety aspects, and you come to realize that many of us are swimming in the same sludge," Klaus Buettner, BMW's vice president autonomous driving projects, told Reuters. "Everybody is investing billions.

UAW warns automakers: Restarting U.S. plants is 'too soon and too risky'

WASHINGTON/WARREN, Mich. — The head of the United Auto Workers union on Thursday said it was "too soon and too risky" to reopen auto plants and Michigan's economy in early May, citing insufficient scientific data and coronavirus testing to assure workplaces are safe. The warning from UAW President Rory Gamble on Thursday afternoon came as General Motors Co , Ford Motor Co and Toyota Motor Corp took new steps toward reopening North American vehicle manufacturing operations in an environment where consumer demand is uncertain and worker safety paramount. The union has said that 24 of its members have died from Covid-19, though it was unclear whether they might have become infected in the workplace. Unionized Detroit automakers and non-union German and Asian automakers have been preparing to restart U.S. vehicle making operations by early May. Companies have shifted reopening dates amid uncertainty about government stay-at-home orders. Gamble's statement appeared to derail plans by the Detroit Three to start bringing UAW workers back to vehicle manufacturing jobs on May 4. The longer the automakers cannot produce profitable U.S.-made trucks and sport utility vehicles, the longer they burn cash. The UAW leader's statement was also aimed at Michigan Gov. Gretchen Whitmer, who has come under pressure from conservative groups and President Donald Trump to ease coronavirus stay-at-home restrictions. "At this point in time, the UAW does not believe the scientific data is conclusive that it is safe to have our members back in the workplace. We have not done enough testing to really understand the threat our members face," Gamble said. "We strongly suggest to our companies in all sectors that an early May date is too soon and too risky to our members, their families and their communities." Gamble said the union was "happy with the auto companiesÂ’ response and cooperation on working through the health and safety protocols we will need in the workplace when it is appropriate to restart." Earlier Thursday, GM began notifying front line managers to come back to work next week to get trained on new safety protocols designed to prevent the spread of the novel coronavirus as workers return to plants.

Full-size trucks are the best and worst vehicles in America

You don’t need me to tell you that Americans love pickup trucks. And the bigger the truck, the more likely it seems to be seen as an object of desire. Monthly and yearly sales charts are something of a broken record; track one is the Ford F-Series, followed by the Chevy Silverado, RamÂ’s line of haulers, and somewhere not far down the line, the GMC Sierra. The big Japanese players fall in place a bit further below — not that thereÂ’s anything wrong with a hundred thousand Toyota Tundra sales — and one-size-smaller trucks like the Toyota Tacoma, Ford Ranger and Chevy Colorado have proven awfully popular, too. Along with their sales numbers, the average cost of new trucks has similarly been on the rise. Now, I donÂ’t pretend to have the right to tell people what they should or shouldnÂ’t buy with their own money. But I just canÂ’t wrap my head around why a growing number of Americans are choosing to spend huge sums of money on super luxurious pickup trucks. Let me first say I do understand the appeal. People like nice things, after all. I know I do. I myself am willing to spend way more than the average American on all sorts of discretionary things, from wine and liquor to cameras and lenses. IÂ’ve even spent my own money on vehicles that I donÂ’t need but want anyway. A certain vintage VW camper van certainly qualifies. I also currently own a big, inefficient SUV with a 454-cubic-inch big block V8. So if your answer to the question IÂ’m posing here is that youÂ’re willing to pay the better part of a hundred grand on a chromed-out and leather-lined pickup simply because you want to, then by all means — not that you need my permission — go buy one. The part I donÂ’t understand is this: Why wouldn't you, as a rational person, rather split your garage in half? On one side would sit a nice car that is quiet, rides and handles equally well and gets above average fuel mileage. Maybe it has a few hundred gasoline-fueled horsepower, or heck, maybe itÂ’s electric. On the other side (or even outside) is parked a decent pickup truck. One that can tow 10,000 pounds, haul something near a ton in the bed, and has all the goodies most Americans want in their cars, like cruise control, power windows and locks, keyless entry, and a decent infotainment screen.