The changing face of auto industry

Issue #257, Aug 5, 2024

Hyundai had an interesting development splitting its marketing department into a creative and a performance division, removing the CMO role. CMO Angela will take up an interesting role as chief creative officer. Speakers at the ETAuto Tech Summit highlighted how sustainability in manufacturing has to be incorporated at the design stage itself along with upskilling of human resources. Toyota's recent decision to replace the troubled engines may have been the latest. It is a lesson in how doing the right thing for customers is always the right thing to do. China's adoption of new energy vehicles is posing a problem for many insurers who are unable to raise their premiums to the point of profitability. Ford, Volkswagen, Stellantis and Honda have had annoying recalls that involve rearview cameras and their images. Battery-powered trucks will pose a few major challenges as they take to the roads - most crucially their cost. Another significant challenge is weight. Below are some recent updates on the changing face of the auto industry beyond electrification of mobility.

CMO role at Hyundai America

Hyundai Motor America is splitting its marketing department into creative and performance divisions, as it moves away from the chief marketing officer role. Hyundai said that Chief Marketing Officer Angela Zepeda will take on a new role as chief creative officer, overseeing social media, creative work, experiential marketing and multicultural marketing. Hyundai Motor America will no longer have a CMO position. Sean Gilpin, vice president of global sales marketing, will take on the additional role of VP of marketing performance. The division will include media-buying, customer communications and marketing financial management. - WSJ

Circularity from design stage

Speakers at the ETAuto Tech Summit 2024 highlighted how sustainability in manufacturing has to be incorporated at the design stage itself along with upskilling of human resources. If India wants to be technologically free, i.e. develop technologies in-house instead of following the West, we need a circular economy, said Kripa Ananthan, Head of Design, Ola Electric. At the designing stage itself of the product, you can promote sustainability. - ET Auto

Toyota's voluntary recall

Toyota North America's recent decision to replace the troubled engines?in more than 100,000 full-size Tundra pickups and Lexus LX SUVs may have been the latest. But it is also a lesson in how doing the right thing for customers is always the right thing to do, regardless of the size or cost of the problem. Toyota's voluntary recall involves the automaker's V35A 3.5-liter V-6 engine, supplied for the LX. According to a statement from the automaker, machining debris may not have been properly cleared when the engines were produced, and that debris can dislodge, leading "to potential engine knocking, engine rough running, engine no start and/or a loss of motive power. - Auto News

EV insurers in China

China's rapid adoption of new energy vehicles (NEVs) is posing a problem for many insurers. They are losing money on insuring the vehicles, as strict pricing rules mean they can't raise their premiums to the point of profitability. This is despite already charging far more to insure NEVs. Electric cars are draining the batteries of China's insurers as owners of new energy vehicles are twice as likely to file a claim. - Nikkei Asia

Rearview mirror recalls

Ford, Volkswagen, Stellantis and Honda have all had recalls in recent months that involve rearview cameras and their images. It's not usually seen as a defect that endangers lives, but it's annoying nonetheless. Ford recalled?nearly 110,000 vehicles in May after it found their rearview camera images weren't displaying properly because of electromagnetic interference from cell phones. Volkswagen recalled?more than 80,000 vehicles because of delayed or deactivated rearview camera images. Stellantis recalled early 1.2 million vehicles because of rearview camera images conflicting with radio systems. - Auto News

Sustainable heavy-duty trucks

Battery-powered trucks will pose a few major challenges as they take to the roads. First, and perhaps most crucially, is their cost. Big models like semi-trucks, will be significantly more expensive than diesel versions today. Another significant challenge for battery-powered trucking is weight: the larger the vehicle, the bigger the battery. That could be a problem given current regulations, which typically limit the weight of a rig both for safety reasons and to prevent wear and tear on roads (in the US, it’s 80,000 pounds). - MIT Tech Review