Challenges and opportunities in the new age

Issue #103, Aug 20, 2021

New age automobiles that include electric and autonomous vehicles continue to face challenges not faced before. But each challenge is an opportunity to innovate and get better in making better, cheaper, efficient vehicles. For example, Ford has adopted a build-to-order business model, taking orders online, to manage the chip shortage and reduce its inventory. To reduce the battery charging time and save cost and weight in wiring, some OEMs are working on 800 Volt drive systems. As part of its vertical integration into semiconductors, Tesla is coming up with a custom chip for training artificial intelligence networks in data centers. GM's plans are to roll out 5G with AT&T for its connected vehicles in 2023. Below are some recent innovations happening in the industry.

Build-to-order to manage chip shortage

In a shift in the way it sells vehicles, Ford plans to do a bigger portion of its sales by having buyers order from the factory and wait, rather than pick from the selection available at the dealership. Company executives say efforts to shift more of Ford’s auto retailing operations to a build-to-order model, where people custom-order online and take delivery at the dealership, would help cut inventory costs for the company and its dealers. - WSJ

The EV switching cost

Automakers are spending billions of dollars to transition to cleaner and greener battery-powered vehicles, but the new technology has come with an even steeper cost: reputation-damaging vehicle fires, recalls, sudden power loss and problems getting some of the cars started. The learning curve with batteries is steep for traditional automakers, and battery technology remains challenging. But they are eager to embrace the new technology with President Joe Biden pushing for half of new car sales to be electric by 2030, a plan that will likely come with billions of dollars in tax and other incentives. - CNBC

Copper cost savings with 800 V

Most EVs operate at 400 volts. A number of producers and their suppliers are now gearing up to introduce 800V drive systems. Higher voltages supply the same amount of power with less current, which means electric cables can be made lighter—the consequent weight saving helping to increase a vehicle’s range, says Christoph Gillen, a technology director for GKN Automotive, a British components group which recently announced that it is accelerating its development of 800V drive systems. As most cabling is made from copper, the price of which has been soaring, this should also save carmakers money. Now that EV sales are growing strongly, though, specialist chipmakers are investing in semiconductors?that can operate at 800V- The Economist

Cars as semi-sentient robots on wheels

Elon Musk said Tesla would build a robot in a human form that could perform repetitive tasks, with a prototype likely to be ready next year. It would draw on some of the technology Tesla has developed for vehicles, he said. “Tesla is much more than an electric-car company, Our cars are semi-sentient robots on wheels," Musk said. "It kind of makes sense to put that [the software] on to a human-like [form] as well. The deployment of such robots could fundamentally change the economy, potentially alleviating labor shortages, In the future, physical work will be a choice,” Mr. Musk said, adding that long-term, such a robot could make it necessary to provide a universal basic income, or a stipend to people without strings attached. - Wall Street Journal

Tesla's vertical integration into chips

Tesla recently unveiled a custom chip for training artificial-intelligence networks in data centers. The work, shown at the automaker’s live-streamed AI Day, demonstrates the company’s continuing pursuit of vertical integration. The D1 chip, part of Tesla’s Dojo supercomputer system, uses a 7-nanometer manufacturing process, with 362 teraflops of processing power, said Ganesh Venkataramanan, senior director of Autopilot hardware. The chips can help train models for recognizing a variety of items from video feeds collected by cameras inside Tesla vehicles. - CNBC

GM's 5G plans for 2023

General Motors plans to sell vehicles with AT&T’s 5G cellular connectivity starting in 2023. The higher speed network is expected to enable greater connectivity for in-vehicle systems such as infotainment, navigation and most importantly, over-the-air software updates. Vehicle connectivity and 5G are main focuses for the automotive industry. “GM and AT&T are working together to set the benchmark for automotive connectivity with a fifth-generation cellular network architecture to meet the needs of an all-electric and autonomous future,” the companies said in a statement. - CNBC

More EV registrations in U.K.

More EVs were registered than diesel cars for the second month in a row in July, according to car industry figures, in U.K. It is the third time battery electric vehicles have overtaken diesel in the past two years. However, new car registrations fell by almost a third, the Society of Motor Manufacturers and Traders (SMMT) said. The industry was hit by the "pingdemic" of people self-isolating and a continuing chip shortage. People are starting to buy electric vehicles more as the UK tries to move towards a lower carbon future. - BBC