Auto industry updates

Issue #44, Dec 27th 2020

The auto industry has been seen interesting updates at both ends of the spectrum. On one end, car makers are reviving traditional engines such as the rotary Wankel engine. At the other end of the spectrum, autonomous and driverless delivery is approved in some specific states and cities in the U.S.A. Electric vehicles has a huge market and it continues to be a dynamic area with new entrants. Infosys is conducting a research study on the adoption of Servitization or 'subscription-based' business models. I have shared the link for the online survey. Those of you who are decision makers in discrete manufacturing, please do take a few minutes of your valuable time to fill up the anonymous survey.

Mazda's bet on rotary Wankel engine

Mazda, struggling with intensifying competition, will turn to new models to revive its fortunes. In addition to introducing "large products" in its new lineup, including SUVs to draw in car enthusiasts, the company will bring back the rotary engine, its global symbol. - Nikkei Asia. The rotary engine had its technical challenges and it will be interesting to see how Mazda addresses them.

Driverless delivery in California

California has given the go-ahead for a commercial driverless delivery service for the first time. Robotics start-up Nuro plans to start its driverless delivery operations as early as next year. It previously tested its R2 vehicles in the state in April, but the permit will let it charge people for its service. The firm's vehicles will be limited to 35mph (56km/h), and will be restricted to operating in "fair weather" conditions. - BBC

Technology giants invading auto sector

Volkswagen Chief Executive Officer Herbert Diess said cash-rich technology giants invading the auto industry pose a much bigger challenge for the German manufacturer than traditional rivals like Toyota Motor Corp. “We look forward to new competitors who will certainly accelerate the change in our industry and bring in new skills,” Diess said in a LinkedIn post when asked about reports that Apple is developing a self-driving car. - Bloomberg

A Tesla of delivery trucks

A business like Workhorse Group, which employs 130 people and had sales of less than $1 million in the first nine months of the year, would not normally attract much attention on Wall Street. Investors are betting that small companies like Workhorse will help popularize electric commercial vehicles. And Tesla aims to extend its reach. - NY Times

Infosys study on Servitization

Are you a decision maker in the manufacturing sector? Please take a few minutes to share your valuable inputs for this study we are carrying out on Servitization or subscription-based services. Thank you in advance. It is an anonymous survey and should not take more than 10 minutes to fill up.

IC Engine factories becoming history

Carmakers will increasingly find themselves in a race to shut, switch or sell factories producing vehicles with internal combustion engines to avoid being left with “stranded assets”, as regulators set a course for a decade of electrification to reduce carbon dioxide emissions. Traditional manufacturers are currently playing a “zero sum game” because growth in electric car sales eats into the value of internal combustion engine factories, which “are effectively stranded assets”, a leading analyst has warned. - The Guardian