Balancing priorities in the auto, EV world

Issue #291

Operating the auto industry and specifically electric vehicles (EVs) continues to be one of balancing or see-sawing: investments on one hand, with slow down on the other. Chinese companies dominant in EVs for example are betting big on translating that success into developing humanoid robots. At the same time, the bruising price war in China’s auto industry has seen dozens of smaller carmakers quit the sector, leaving their customers with a problem: what do you do when your high-tech EV becomes obsolete? Mercedes-Benz will include more combustion engine models than electric ones in its new product range as it seeks to revive margins in response to a sharp drop in earnings. Limiting production is helping Ferrari to make its sports cars coveted—and the company the most valuable automaker in Europe. In the future, cars will not only drive autonomously, they'll also have a distinct driving style. UK lenders paid “advance commissions” to car dealers that may have encouraged them to push costlier loans on to consumers, legal filings linked to the motor finance scandal reveal. Below are some reports of the balancing act reported in the media.

The pivot from EV to humanoid-robot

Chinese companies dominant in EVs are betting big on translating that success into developing humanoid robots. Skepticism for humanoid robots exists in China: they’re too clunky, finicky, expensive to serve much use in factories. But there seems to be more confidence in factory deployment. With an aging population and a labor shortage on the horizon, there’s growing interest in medical and caregiving applications too for humanoid robots. Training them doesn’t demand as much computing power as training large language models, since there isn’t enough physical movement data to feed into models at scale. But as robots improve, they’ll need high-performance chips, and US sanctions will be a limiting factor. Chinese chipmakers are trying to catch up and address the challenge. - MIT Tech Review

When EV makers go bust

The bruising price war in China’s auto industry has seen dozens of smaller carmakers quit the sector, leaving their customers with a problem: What do you do when your high-tech EV becomes obsolete? Drivers are unable to access tech features when carmakers go bust. Market consolidation hands greater power to industry giants. Connectivity features have gradually vanished. Bluetooth keys no longer unlock doors, in-car entertainment systems are silent, maps don’t update and video streaming is unreliable. - Bloomberg

Mercedes-Bens focus on high-margin ICE

Mercedes-Benz will include more combustion engine models than electric ones in its new product range as it seeks to revive margins in response to a sharp drop in earnings. The car maker will release 19 new petrol and diesel vehicles and 17 battery-electric cars by the end of 2027 in an “intense product launch campaign”. The balance reflects a renewed focus on petrol and diesel after sales of Mercedes’ battery EVs fell by almost a quarter last year. Most of the new models will be in its top-end price tier, demonstrating a commitment to selling a lower volume of higher-margin vehicles. The strategy of value over volume remains in place. - Times

Ferrari limiting production

The usual focus in the automotive industry or manufacturing is to product more to sell more. However, limiting production is helping Ferrari to make its sports cars coveted—and the company the most valuable automaker in Europe. With a list price of $3.7 million, Ferrari’s new “hypercar” was revealed to the public in October with a twist: It wasn’t available for sale. All 799 units of the low-slung, high-haunched F80 model—the most expensive production vehicle in Ferrari’s history—had been promised to top customers. - WSJ

Unique driving styles in autonomous cars

In the future, cars will not only drive autonomously, they'll also have a distinct driving style. Nvidia is developing AI-based tech to help automakers create personalized driving systemsA Porsche programmed with aggressive, sporty moves; a Volvo tuned to a more cautious pace; an autonomous Rivian that takes the scenic route, on-road or off.?In the future, cars won’t only drive autonomously: using software and AI, their makers will give them distinct driving styles.?Automakers are using software and AI to make vehicles of tomorrow more collaborative, working alongside passengers. - WSJ

Car loans scandal

UK lenders paid “advance commissions” to car dealers that may have encouraged them to push costlier loans on to consumers, legal filings linked to the motor finance scandal reveal. Court documents show that lenders, including Lloyds Banking Group, have paid commission to individual dealerships in lump sums upfront, which campaigners say total millions of pounds. The car loans scandal, rumbling on for more than a year, is projected to cost lenders, including Santander UK, Close Brothers, Barclays and Lloyds, a collective ￡44bn. The Guardian

Image source for see saw banner image at the top of newsletter: rachaelvoorhees from arlington, va, CC BY 2.0 <https://creativecommons.org/licenses/by/2.0>, via Wikimedia Commons