What We’re Reading
Toyota pushes back electric vehicle production plans in America (Detroit Free Press, October 7, 2024)
Toyota has long been cautious about the widespread adoption of electric vehicles, and the current EV market slowdown seems to validate its skepticism. However, despite the slump, the global auto industry continues to shift toward electrification, and all manufacturers, including Toyota, will ultimately need to adjust – albeit at a slower pace than originally anticipated.
Though there were reports of Toyota’s three-row EV SUV launching by the end of 2025, production has been delayed until at least 2026. Meanwhile, Lexus has canceled its plans for a new electric vehicle as EV sales continue to decline in the U.S. Despite the downturn, Toyota remains committed to producing 1.5 million EVs annually by the end of 2026, with plans to introduce seven new EV models to the U.S. market.
Google’s Waymo Chooses Hyundai Ioniq 5 for Autonomous Driving Fleet (MSN, October 6, 2024)
Hyundai and Waymo partner to integrate autonomous driving technology into Hyundai vehicles, starting with the sixth generation Waymo Driver in the Hyundai Ioniq 5. Vehicles will be produced at Hyundai's Georgia factory with autonomous pre-installation, ensuring they are ready for self-driving technology. Waymo plans to add the Ioniq 5 to its Waymo One fleet by 2025, expanding its operations in select U. S. regions. This collaboration allows Hyundai to enter the autonomous vehicle sector while growing Waymo's fleet, previously supplied by Chrysler and Jaguar. The latest Waymo Driver features advanced hardware and software for enhanced detection capabilities in various conditions.
Autonomous vehicles could render personal auto insurance obsolete by 2044, new report finds (CBT News, October 4, 2024)
A new Morningstar report suggests that self-driving cars might significantly diminish the need for personal auto insurance within 20 years. By 2044, if AVs are widely adopted, liability could shift from drivers to manufacturers, transitioning insurance to product liability. Full adoption of Level 4 or 5 autonomy, where cars drive without human intervention, could make personal insurance obsolete by 2060. Currently, most vehicles have Level 2 automation requiring driver assistance. Companies like Waymo and Cruise are pioneering Level 4 capabilities with region-specific robotaxis. Morningstar projects that AVs could reach 80% market penetration within 7 to 18 years, depending on adoption speed. Insurance may remain unaffected until Level 4 autonomy prevails, but a 10% AV penetration rate by 2035 could begin reshaping the industry, potentially eliminating some insurers by 2043 as AV penetration grows.