• Mercedes-Benz gets the OK to begin testing its Level 4 autonomous driving tech in China (Electrek, August 6, 2024)

  Mercedes-Benz has become the first international automaker to be approved by local regulators in Shanghai to begin testing its SAE Level 4 autonomous driving system. Mercedes has been a leader in the advancement of autonomous driving technology, with its Level 3 “Drive Pilot” system as the only Level 3 non-robotaxi vehicle offered in the United States. Unlike Level 2 driving systems, like Tesla’s Full Self-Driving and Autopilot systems, Mercedes’ Level 3 system takes full control of driving situations, and also accepts full liability when the technology is enabled.

  In Shanghai, Mercedes has been approved to begin testing its Level 4 driving system on limited local roads and highways. With a L4 system, the vehicle is essentially doing all of the work, including parking and reversing. Carmakers XPeng and Tesla have plans to introduce Level 4 driving systems to China’s roads shortly, but for now, it seems Mercedes-Benz is getting a head start. 

• US to Call for Limits on Chinese Vehicle Software Over Data Security Concerns (BNN Bloomberg, August 6, 2024)

  The US is escalating its tech confrontation with China by planning to restrict sales of Chinese vehicle software, targeting autonomous and internet-connected vehicles due to security concerns. The Biden administration, responding to a cybersecurity review initiated in March, aims to limit the use and testing of Chinese technology in these vehicles. This move addresses risks from devices in modern cars, which connect to the internet and are vulnerable to hacking. The restrictions will hinder Chinese companies from collecting data on US drivers and prevent Chinese suppliers from dominating the US market. The Commerce Department will enforce these measures, allowing a phase-in period for automakers to adjust. US officials are coordinating with international partners and have engaged in discussions with China. The measures will initially focus on software and systems that collect vehicle data, with potential future restrictions on hardware. The aim is to secure US automotive supply chains and mitigate national security risks.

• Tesla sued by family of motorcyclist killed in Autopilot crash (Yahoo News, August 2, 2024)

  Tesla is in the news again as another wrongful death lawsuit was filed against the automaker.  The parents of Landon Embery are suing after their son was hit on his motorcycle by a Model 3 on a Utah highway in 2022.  The Tesla’s driver had Autopilot engaged at 75-80 mph.

  The complaint states, “A reasonably prudent driver, or adequate auto braking system, would have, and could have slowed or stopped without colliding with the motorcycle”.  This lawsuit continues to add to the scrutiny of Tesla’s Full Self-Driving and Autopilot capabilities.

• Chinese self-driving cars have quietly traveled 1.8 million miles on U.S. roads, collecting detailed data with cameras and lasers (Fortune, July 8, 2024)

  Since 2017, self-driving cars owned by Chinese companies have traveled 1.8 million miles in California alone.  The cars are part of a state program that allows companies who are developing self-driving technology to test on their roadways. The self-driving vehicles are equipped with cameras and LIDAR which map roadways within 2 centimeters of precision.  Many people are concerned about what kind of data is being collected by these Chinese cars and where the data is sent once it is collected, since there is no federal or state oversight.  It is raising security concerns because the data can be used for war strategy and can track movements, such as where individuals go to worship, schools, and other places. 

  Currently there appears to be no government agency that monitors the data that Chinese self-driving cars collect and their national security implications. “The U.S. federal government is just [so] wholly inundated with looking at a raft of other China-related challenges that unfortunately, this particular issue is probably number 18 or 19 on the priority list,” said Singleton from the Foundation for Defense of Democracies.  There is still hope, though.  If the government makes moves now in regulating, they won’t have to play catch up.

• Chinese EVs posing threat to U.S. automakers despite increase in tariffs (CBT News, July 5, 2024)

  Despite the recent announcement from the White House that tariffs on Chinese EVs are increasing from 25% to 100%, Chinese automakers are expected to achieve 33% market share globally by 2030, according to a study from global consulting firm AlixPartners. China has dominated in battery production and the battery supply chain, and Chinese automakers, such as BYD, continue to dominate the global market (see above). AlixPartners has described an “overtime culture” in China that allows for Chinese companies to release new vehicles and products much quicker than many overseas rivals. While the U.S. has imposed tariffs against Chinese EVs, it appears to be only a “short-term band aid” to protect American legacy automakers. China continues to “out-innovate” the U.S. in terms of battery production and technology, and it seems to only be a matter of time before China takes its seat as the global leader in electric vehicles.

• Mercedes Exec Blasts Tesla For Reckless “Full Self-Driving” Rollout (The Byte., July 3, 2024)

  According to Mercedes exec Jochen Haab, Elon Musk’s Tesla has utilized its customers as beta testers for its expensive Full Self-Driving (FSD) software, leading to numerous crashes and fatalities, prompting regulatory investigations. Haab advocates for a cautious, step-by-step approach to build trust in autonomous driving technology. He criticizes Tesla’s aggressive marketing, suggesting it misleads drivers into overestimating the software’s capabilities, thereby increasing road dangers. Haab believes the perceived overpromise and underperformance of Tesla’s FSD have eroded public confidence in self-driving technology. Mercedes contrasts its strategy by limiting beta testing to trained professionals and recently getting approval for its Level 3 autonomous driving system in California and Nevada, which surpasses Tesla’s Level 2 FSD.

Each year, tech junkies flock to Las Vegas and the Consumer Electronic Show (CES).  The world’s largest consumer tech show had more than 4,300 exhibitors, over 1,200 startups, and was visited by about 135,000 attendees over four days.  AI dominated the show with products ranging from binoculars that identify the birds you are viewing to glasses that project accurate closed captions of conversations that are only visible to the wearer, and what interested us most, EVs and automated vehicles. 

At CES, major car manufacturers like Ford and GM were absent, however Honda, Volkswagen, Hyundai, BMW, Mercedes, and Mitsubishi were among the most well-known names to debut concept cars and new technologies. There were also some surprise entries into the market like LG with their concept car LG Alpha-able.  Their concept car was on display to show what their idea of future mobility will look like.  With the automotive industry rapidly shifting towards electrification and automated driving, it will be interesting to see who else enters the fray. 

Last week, partner and founder, Mike Nelson attended CES and here is some of the technology that caught his attention.

Goodyear

• May Mobility launches first driverless transit service for Early Riders in Arizona, takes next step toward transforming the way riders get around cities and urban environments (PR Newswire, December 18, 2023)

  Another AV startup attempting to buck the trend of recent scale backs in the space is May Mobility, which recently announced that it will launch its first commercial driverless service on public roads in Sun City, Arizona, a retirement community northwest of Phoenix. The company is starting slowly, with just two autonomous minivans operating within a 4.5-mile service area within Sun City. Early riders can use May Mobility’s app to request a driverless shuttle pickup to and from a variety of popular stops, including resident complexes, grocery stores, pharmacies and medical centers. After an initial phase, May Mobility plans to add more vehicles and riders in a larger area.

  “Today, we take the key step of beginning rider-only operations, a cornerstone for our commercial growth and expansion moving forward,” said Edwin Olson, CEO and co-founder of May Mobility. “We believe it is critical to work closely with our key strategic partners, regulators, insurers, and riders, as we roll out our technology step-by-step.”

• Mercedes Permitted to Use Turquoise Marker Lights for Drive Pilot (Car and Driver, December 19, 2023)

  Mercedes-Benz has officially received approval in California and Nevada to add a fourth color of external lights on its vehicles to indicate when a Mercedes vehicle is driving itself. In addition to the standard three colors – red for brake lights and rear lights, white for headlights and reverse lights, and gold for turn signals – the blue lights will indicate when a Mercedes vehicle has Drive Pilot engaged. Unlike Tesla’s Full Self-Driving or GM’s Super Cruise, a driver in a vehicle equipped with Drive Pilot can remove their hands from the steering wheel, feet from the pedals, and eyes from the road under certain conditions until the system alerts the driver to take over.

  The specific turquoise blue shade was first recommended by the Society of Automotive Engineers because the color is unlikely to be confused with any other vehicle lights, police lights, or traffic lights. Mercedes is the first automaker to receive approval for the use of the blue lights on the headlights, taillights, and side mirrors, which will alert passing vehicles that the car is driving itself. The 2026 EQS Sedan and S-Class will be the first vehicles produced with the new lights.

• GM’s Cruise robotaxi lays off 900 workers with investigation into San Francisco crash ongoing (AP, December 14, 2023)

  Dominoes continue to fall this week in General Motors’ troubled Cruise autonomous vehicle unit with the announcement that it will be cutting over 900 jobs, about a quarter of its workforce. These cuts come a day after reports that nine key leaders are no longer with the company as a result of corporate restructuring due to the October crash involving one of its driverless robotaxis that forced it to suspend operations. The executive departures included leaders from legal, government affairs, commercial operations and safety and systems teams, Cruise said. These departures come just weeks after Kyle Vogt resigned as Cruise’s CEO.

  “We are simplifying and focusing our efforts to return with an exceptional service in one city to start with,” said President and Chief Technical Officer Mo ElShenawy. “As a result of our decision to slow down commercialization, we are restructuring to focus on delivering the improvements to our tech and vehicle performance that will build trust in our AVs (autonomous vehicles),” ElShenawy added.

• Carmakers Failing Privacy Test. Owners Have Little or No Control over Data Collected (Claims Journal, September 7, 2023)

  As cars become more and more connected, it is no secret that car manufacturers and service providers like OnStar are gathering troves of data—it also is no secret that they are looking for ways to profit from that data. According to a new survey from the nonprofit Mozilla Foundation, drivers should be concerned. Not only are drivers “given little or no control over the personal data their vehicles collect,” OEMs are vague on both their security standards and the market for the data they collect. In fact, “[c]ars scored worst for privacy among more than a dozen product categories—including fitness trackers, reproductive-health apps, smart speakers and other connected home appliances—that Mozilla has studied since 2017.”

  Mozilla reviewed privacy notices from 25 popular car brands and found that none met minimum privacy standards. Nineteen of the notices include sale disclosures, while half disclose that data may be shared with government agencies or law enforcement without a court order. Nissan was particularly notable to researchers in disclosing that it may collect personal information as varied as drivers’ license numbers to health diagnoses to genetic characteristics. Tesla also “scored high on Mozilla’s ‘creepiness’ index.”

  Privacy rights advocates also are sounding alarms. For example, Albert Fox Cahn of Harvard’s Carr Center for Human Rights Policy says “[t]here is something uniquely invasive about transforming the privacy of one’s car into a corporate surveillance space.” On the other hand, in a letter sent just last week to Congressional leaders, the Alliance of Automotive Innovation indicated its constituents’ support for privacy protections, and advocated for federal privacy laws to bring consistency to the current “patchwork of state privacy laws” that “creates confusion among consumers … and makes compliance unnecessarily difficult.”

• Mercedes-Benz to launch BYD-powered EVs to keep pace with Tesla, Chinese automakers (Electrek, September 8, 2023)

  Mercedes-Benz is looking to compete with Tesla on a new level with the introduction of an entry-level EV, the CLA electric sedan concept, as well as a “mini G-Wagon” EV. The German automaker plans to begin production of the CLA EV in 2025 and the mini G-Wagon in 2026 using a lithium iron phosphate (LFP) blade battery manufactured by China’s BYD.

  “Like many luxury automakers, Mercedes uses ternary (Nickel Manganese Cobalt) batteries for its current EV lineup. However, LFP batteries are gaining popularity due to the cheaper costs. LFP batteries require less precious metals like Cobalt, enabling them to be produced for cheaper.”

  Other automakers turning to LFP batteries include Ford, Toyota, Hyundai, and Kia.

• How electrified roads could help fix America’s electric vehicle charging problem (CNBC, September 11, 2023)

  Although the number of EV converts continues to grow year over year, many consumers are still opting for ICE powered transportation, citing a lack of charging options and high costs as the main barriers to going electric. One possible solution to these hurdles—electrified roads that wirelessly charge EVs as they drive—is becoming more popular as a potential supplement to static charging. 

  “This is really an approach that can charge vehicles in any type of shape, meaning vehicles that are both buses or vans or passenger cars or trucks—but it can also charge a vehicle while either driving or while standing still,” Stefan Tongur, VP of U.S. business development at Electreon, told CNBC. Israel-based Electreon, a leading provider of wireless charging solutions for EVs, currently has numerous pilot projects and case studies in operation in Sweden, Norway, and Italy, as well as the first electric road project in the U.S. in Detroit, which is expected to be completed and in service sometime next year.

  “We don’t view 100% of roads being electrified, but we definitely see this technology being viable… financially and also essential in rural areas where we might not have a lot of charging stations or we have what we call charging deserts,” Nadia Gkritza, professor of civil and biological engineering at Purdue University, said.

  A video of the full story can be viewed here. 

Tesla has long enjoyed a competitive advantage in the EV space by providing charging via its Supercharging stations, the largest and most reliable charging network in North America by a wide margin. This superior fast-charging network was a key aspect of Tesla’s early sales pitch to reticent electrification converts—and it has remained a key component of the company’s tremendous success since.

Tesla historically walled of its charging network by using a proprietary plug design known as the North American Charging Standard (NACS), which until very recently was not compatible with other automakers’ EVs that typically charge using the Combined Charging System (CCS) plug standard. Through the use of NACS, Tesla has been able to tightly integrate its entire charging ecosystem, while other competing charging networks have remained fragmented and unreliable. In a study last year, researchers at the University of California at Berkeley found that almost a quarter of the 675 CCS fast chargers in the San Francisco Bay Area were inoperable, while a more comprehensive August 2022 study by JD Power concluded that Tesla’s Supercharger network was far more reliable than CCS chargers in other parts of the country.

Given the superiority of Tesla’s Supercharger network and the concomitant economic advantage Tesla has maintained over its competitors as a result, many were shocked by announcements over the past few months that Tesla had reached agreements with Ford, GM, Mercedes-Benz, Polestar, Volvo, Nissan, Fisker, and Rivian to make the Tesla Supercharger network available to their drivers through an adapted NACS port. Initial reactions saw these deals as a curious concession by Tesla that could finally level the charging playing field and allow other automakers to ramp up sales of their own EVs.

So why did Tesla let its competitors inside the gates of its charging network? At first glance, it appears that Tesla will certainly add additional revenue to its coffers from increased use of its charging ports. Indeed, analyst Piper Sandler estimates that, by 2030, Tesla will earn $3 billion in charging fees from non-Tesla drivers. Tesla also may reap the benefits of the implicit endorsement of its technology as the superior standard, which could further result in a share of the public EV-charging subsidies available under the Bipartisan Infrastructure Law.

From a public relations standpoint, Tesla has consistently maintained that the primary reason for opening up its Supercharger network is to assist the acceleration of EV adoption and the world’s transition to sustainable energy by removing infrastructure barriers. Upon closer examination, however, Tesla’s motives may be far less altruistic. In fact, the real impetus for Tesla’s sudden change of heart may simply be what is quickly becoming the equivalent of gold in the connected car market: data, and lots of it. 

It is no secret that Tesla uses cellular and WiFi data ports to collect what one investigation called a “hoard” of data about any car that plugs into its Supercharger network, tracking a plethora of data points from vehicle performance to driver preferences. By letting it competitors freely access its chargers, Tesla may also be covertly positioning itself to siphon critical and highly valuable vehicle data from its competitors under the guise of charging collaboration. In addition to affording invaluable insight into its competitors’ EV specifications and performance, this move may also provide Tesla with yet another lucrative revenue stream in the form of vehicle data sales, which some predict could be worth more than $800 billion by the end of the decade.

Tesla’s bid to get the entire EV industry to adopt its NACS plug could be a harbinger of Tesla’s future designs on supplying or licensing its arguably superior technology to other automakers who either don’t want to or can’t invest sufficient capital to develop EV components or technology organically. In fact, Tesla CEO Elon Musk recently confirmed during an earnings call that Tesla is in advanced discussions with major OEMs regarding the licensing of its Autopilot and FSD technology, which not so coincidentally would require other automakers to onboard both Tesla’s software and hardware suites, thus creating yet another trove of accessible vehicle data.

By continuing to leverage its competitive advantages through the utilization of unparalleled access to a broad range of vehicle data, Tesla may actually be implementing an ingenious plan to corner the EV market on key components such as technology, batteries, plugs, chargers, and even drivetrains. Yes, we are talking about a future EV landscape, backed by public subsides at every level, that could be completely dominated by Tesla. 

Regardless of Tesla’s actual intentions, it is becoming more and more apparent that access to vehicle data is the gateway to innovation and market dominance. In this regard, Tesla certainly appears to have a substantial leg up on all other automakers, who seem to always be a little late to the EV game, which whether you like him or hate him, is currently being dominated by Elon Musk.

Copyright Nelson Niehaus LLC

The opinions expressed in this blog are those of the author(s) and do not necessarily reflect the views of the Firm, its clients, or any of its or their respective affiliates. This blog post is for general information purposes and is not intended to be and should not be taken as legal advice.

Global EV sales are expected to surpass 73 million units in 2040, up from around 2 million in 2020, according to forecasts by Goldman Sachs Research. A recent report published by Bloomberg New Energy Finance (NEF) similarly forecasts considerable growth in the sector, predicting that more than 50% of U.S. car sales will be EV models by 2030.

While these predictions focus on consumer demand, supply obviously must follow. To keep up, legacy automakers plan to spend a combined $1.2 trillion through 2030 in developing new EV models. How and when they plan to invest, however, differs from automaker to automaker. In today’s post, we take a closer look at the plans of many of the major legacy automakers. We also provide each automaker’s current Greenpeace ranking based on its expected “phase-out of combustion engine vehicles, supply chain decarbonization, and resource reduction and efficiency.” 

General Motors (1)

GM’s electrification strategy centers on a planned investment of $35 billion through 2025 to become the U.S. market leader in EVs; the global leader in battery and fuel cell technology; and the first OEM to commercially scale self-driving technology through Cruise. According to LMC Automotive estimates, GM is expected to be the leading EV manufacturer by 2030, with 18.3% market share, ahead of Tesla at 11.2% and followed distantly by Volkswagen and Ford. 

Mercedes-Benz USA (2)

As one of the leaders in the electrification transition, Mercedes-Benz has committed to launching electric-only vehicle platforms from 2025 onward with the goal of an all-electric fleet by 2030. This aggressive electrification strategy is backed by $47 billion in funding.

Volkswagen Group of America (3)

The Volkswagen Group—which includes Audi, Bentley, Bugatti, Lamborghini, Porsche, and Volkswagen—plans to invest $200 billion over the next five years to solidify its position as an EV market leader. The European automaker aims to have a 50% electrification sales ratio in the U.S and 80% in Europe by 2030, with 70 new electrified models already in the pipeline. The Group already has experienced some setbacks, however, including the delayed rollout of its flagship EV project due to struggles in its software-development unit, Cariad. Disruptions and mismanagement also pushed back the release of the Audi Artemis, the automaker’s attempt to compete with Tesla’s luxury lineup. Still, some analysts see the VW Group surpassing Tesla in electric car sales as soon as 2024.

Ford Motor Company (4)

Despite having never sold an EV before 2020, Ford is investing more than $50 billion to scale development and production at a run rate of 600,000 EVs globally by late 2023, 2 million EVs annually by 2026 (a third of its annual global production), and ramping up to 50% by 2030. The Ford Electric Vehicle Strategy, which includes a goal of carbon neutrality by 2050, is a self-described holistic approach to electrification that aims to bring EVs to customers at an accessible price point and a lower cost of ownership. 

Hyundai Motor Company (5)

Hyundai plans to invest over $18 billion through 2030 as it aims to become one of the world’s top 3 EV manufacturers by 2030. The auto group—which includes luxury brand Genesis, as well as Hyundai and a part ownership of Kia—plans to offer 17 new EV models by 2030. The Korean Automaker has committed to electrifying all new model vehicles starting from 2025, with goals of an 80% electrification sales ratio by 2040 and carbon-neutrality by 2045.

Kia Motors (6)

Like its corporate partner Hyundai, Kia has identified specific EV sales targets as part of its future electrification strategy. Key to its transition towards becoming a “sustainable mobility solutions provider” is reaching 2.38 million annual EV sales worldwide by 2030 and increasing its EV lineup to 14 electric models globally by 2027. In the U.S., Kia plans to launch one new EV model every year until the end of the decade, with a goal of converting 50% of overall U.S. sales to EVs by early next decade.

Stellantis (7)

Based in the Netherlands, Stellantis was formed through a 2020 merger of Fiat Chrysler and Peugeot S.A (PSA), and encompasses the Alfa Romeo, Chrysler, Dodge, Fiat, Jeep, Maserati, and Ram truck brands. In July 2021, the automaker unveiled a worldwide electrification strategy called Dare Forward 2030, declaring that all its brands are committed to becoming fully electric with more than 75 EV models and sales of 5 million units by 2028. Stellantis aims to have a 100% EV sales ratio in Europe and a 50% EV sales ratio in the U.S. by 2030. Additionally, the company has set a goal of achieving carbon neutrality by 2038 with a 50% benchmark established for 2030.

Nissan (8)

Nissan is one of the leaders in the EV market, having sold more than half a million Leaf EVs over the past decade. The Japanese automaker recently announced that it plans to accelerate its electrification strategy as part of its “Ambition 2030” long-term vision. Adding to its original $18 billion investment over the next five years, Nissan plans to introduce 27 new electric models by 2030, resulting in a global electrification sales ratio across the Nissan and Infiniti brands of 55% by 2030.

Honda Motor Company (9)

Honda plans to invest at least $40 billion in EV research and development through 2030 to further its goal of achieving zero-emissions electrification on all vehicles by 2040. To hit this target, the automaker plans to incrementally increase EV sales to 40% of all vehicles by 2030 and 80% by 2035. Separately, Honda revealed plans last week to increase its EV production target to over 2 million units by 2030.

Toyota (10)

In an apparent pivot from its prior hesitancy to embrace EVs, Toyota recently unveiled a new electrification strategy, placing greater emphasis on the short-term development of EVs with 10 new models and an annual sales goal of 1.5 million EVs by 2026. Toyota still remains focused on its long-term electrification strategy of globally producing 3.5 million EVs annually by 2030, backed by $70 billion in investments. As to the Japanese automaker’s luxury brand, Lexus, the full model lineup is expected to be 100 percent electric by 2030.

BMW (not ranked)

BMW entered the electrification race relatively early in 2014 with its i3, an EV designed primarily for urban transit that has had limited success in the U.S. Since then, the Bavarian automaker has steadily introduced new EV models, with a goal of reaching 50% electrification before 2030. The MINI and Rolls-Royce brands—which are both under the BMW umbrella—are slated to be exclusively all-electric by the early 2030s. The automaker aims to have 2 million electric vehicles on global roads by 2025 and expects annual sales of EVs to exceed 1.5 million as early as 2030.

Jaguar Land Rover Limited (not ranked)

The iconic English brands Jaguar and Land Rover have been a subsidiary of Tata Motors, an Indian multinational firm, since 2008. Jaguar currently has only one EV model, the Jaguar I-Pace. On the Land Rover side of the company, an all-electric Range Rover is expected in 2024. As part of its “Reimagine Strategy,” Land Rover will rollout 6 new all-electric SUVs over the next five years and Jaguar will become a pure electric luxury brand by 2025. With the assistance of over $2.5 billion in investments, JLR’s goal is to achieve a 60% EV sales ratio by 2030 and 100% by 2036. Whether the automaker will meet these goals is uncertain, however, with industry experts noting that JLR is in dire straits without the sales and massive electrification budget to compete with other European EV market leaders such as BMW, Mercedes, and Volkswagen.

Mazda Motor Company (not ranked)

Mazda was somewhat of a latecomer, but recently announced that it plans to significantly increase EV production, targeting a global electrification sales ratio of 40% by 2030 with a nearly $11 billion investment strategy to speed up the transition. Additionally, the Japanese automaker aims to become carbon-neutral by 2050, with its factories achieving this goal by 2035. To facilitate the transition, Mazda plans to partner with one or more companies on the idea of “co-creating with others.”

Mitsubishi Motors (not ranked)

Mitsubishi (which has significant oil and gas interests) has no purely electric vehicles in its current North American or European lineups, despite being an early pioneer in EV development with its 2009 iMiEV electric kei car. The Japanese automaker, however, has been partly owned by Nissan since 2016 and has access to significant technical resources through the Renault-Nissan-Mitsubishi Alliance. It also recently announced that it plans to expand its EV lineup to 50% of its global sales by 2030, with a goal of reaching 100% electrification sales by 2035.

Subaru (not ranked)

Another latecomer to electrification, Subaru announced in early 2020 that it would be the first Japanese automaker to offer full electrification on all models by 2035. Three years later, the Japanese automaker offers only one EV, the Solterra, which was developed and manufactured in Japan and China as part of a joint venture with Toyota. Building on the success of the Solterra, Subaru plans to jointly develop several new EVs with Toyota by 2025 that reportedly will be built in-house at Subaru’s Gunma plant in Japan.  Subaru is targeting a 40% global electrification sales ratio by 2030 and full electrification of all models shortly thereafter. 

Volvo Group North America (not ranked)

Volvo, which is owned by Zhejiang Geely Holding Group—the Chinese company that also owns Lotus—aims to achieve a 50% EV sales ratio by 2025 with the goal of producing only electric luxury vehicles globally by 2030.

Copyright Nelson Niehaus LLC

The opinions expressed in this blog are those of the author(s) and do not necessarily reflect the views of the Firm, its clients, or any of its or their respective affiliates. This blog post is for general information purposes and is not intended to be and should not be taken as legal advice.

• Tesla’s price war is starting to backfire (Business Insider, March 14, 2023)

  Tesla has been making news since the beginning of the year by repeatedly slashing prices, including as recently as last week with Models S and X price cuts. Initially, these lower prices sparked demand and triggered a price war in the industry for certain EV and luxury gas-powered brands. Now analysts are saying the strategy has likely run its course and is possibly even backfiring, based on market activity in China where the price cuts were first introduced.

  According to Morgan Stanley’s Adam Jonas, “[u]nlike earlier cuts that triggered a strong demand-response, this round has not seen follow-through as consumers wait for further cuts.” Jonas predicts that “prolonged price competition will likely aggravate consumer hesitancy to place orders” and a price war “would urge consumers to stay sidelined” waiting for further discounts.

• GM’s Ultra Cruise Engineer Deftly Jabs At Tesla And Full Self-Driving (CarScoops, March 11, 2023)

  Cadillac continues to tease its upcoming flagship EV, the Celestiq, which is expected to go to market in 2024 with a price tag of $300,000. Among its many exciting features, the Celestiq will debut Ultra Cruise ADAS technology, described as “a step above GM’s already impressive Super Cruise technology.”

  Speaking about that technology this past week, chief engineer Jason Ditman took the opportunity to highlight safety above all else, not-so-subtly distinguishing GM’s testing approach from Telsa’s “beta” system. “Ditman promised that testing, which isn’t done on public roads, would be done before [the system is] available to drivers.” The hardware underlying GM’s system also is distinguishable from Telsa’s, with GM relying on cameras, lidar, radar, and a system of 20 sensors “to enable Ultra Cruise.”

• IIHS: Technology shouldn’t completely replace drivers (Repairer Driven News, March 9, 2023)

  In potentially concerning news for the AV industry, the Insurance Institute for Highway Safety (IIHS) has cautioned that the use of partially and fully autonomous vehicles incorporating current technology could actually make roads more dangerous. Following a theme voiced by numerous industry experts, IIHS’s president David Harkey stated during a Capitol Hill briefing last week that, while current ADAS offer significant safety benefits, he doesn’t believe fully self-driving technologies have sufficiently advanced to warrant wide-scale adoption. 

  “We firmly believe in technology for vehicle safety and the potential it has to reduce the tragic toll on our roadways, but I want to be clear about where we see the greatest benefits for vehicle safety technology,” Harkey told legislators in prepared remarks. “We believe it is critical for the driver to remain engaged in the driving task at all times and always be responsible for all actions of the vehicle. We do not believe in the promise of technology to completely replace drivers and for the vehicle to assume all responsibility for vehicle operations.”

  Notwithstanding these warnings, automakers such as Stellantis, Mercedes-Benz, General Motors and, of course, Tesla are still moving full steam ahead with ambitious implementation of self-driving technologies into their vehicles.

  Harkey’s comments are consistent with an IIHS study last October, which further reinforced the widely held belief that drivers improperly perceive partially autonomous vehicles as fully self-driving, thereby lulling drivers into complacency and highly dangerous non-driving activities such as eating or using smart phones while behind the wheel.  

  “These systems can control the vehicle’s speed and steering. But they’re not now and may never be able to handle every situation that arises, so the driver must remain focused and ready to take over at all times,” Harkey said. “Unfortunately, human nature and the designs themselves make that extremely difficult.”

• Car Tech at CES 2023 Is All About Streaming, Gaming, Autonomous Driving (PCMag, January 7, 2023)

  Although still titled the “Consumer Electronics Show,” attendees at this year’s event (January 5-8, 2023 in Las Vegas) may have thought they had wandered into a car show instead, with “25% more floor space allocated to automotive brands, and the tech inside their cars, this year than in 2022.” This article provides a roundup of details and images of the “coolest car technology from the show,” including:

  • Sony and Honda’s joint EV venture, AFEELA, which will start deliveries in 2026 and will incorporate self-driving technology from Qualcomm and Sony’s gaming platform. Among other notable features, perhaps targeting an American audience, the AFEELA will be able to “display the score of a live sports game on the outside of the car for tailgating.

  • Puegeot’s Inception EV Concept, a futuristic looking vehicle with sharp angles and cutting edge technology at every turn..

  • Qualcomm’s Digital Chassis Concept, which will include a “new chip that combines digital cockpit tech … with autonomous driving” and which the tech company hopes will bring autonomous driving to the masses.

  • VW’s ID.7 EV, which is expected to compete with the Tesla Model 3.

  • BMW’s “talking” car, the I Vision Dee—with the “DEE” standing for “Digital Emotional Experience.”

  • The RAM 1500 Electric Pickup Truck, which is slated for production next year and will feature a “massive” cabin and a “Shadow Mode” that will allow the car to autonomously follow the driver while performing work outside.

  • Multiple fully autonomous vehicle concepts from startups and traditional OEMs alike.

• Mercedes Is The First Automaker to Offer Level 3 Self-Driving In The US (Inside EVs, January 9, 2023)

  Mercedes-Benz appears to be following through on commitments it made last year, announcing at CES 2023 that it has become the first automaker to earn regulatory approval to operate a Level 3 autonomous driving system in the United States, with Nevada recently approving the use of Mercedes’s Drive Pilot system on its public roads. The German automaker also announced that it expects California to grant regulatory approval for Drive Pilot in the near future.

  Level 3 automation is the lowest level SAE designates as automated driving. At Level 3, the system can in theory operate without driver monitoring in certain situations, but still requires the driver to remain attentive and ready to assume control at any time when prompted. By comparison, GM’s Super Cruise and Tesla’s Autopilot are Level 2 systems, providing advanced driver assistance but still requiring constant driver monitoring. 

  By remaining focused on Level 3 approvals, Mercedes appears to be bucking recent trends toward advanced Level 2 or ultimately Level 4 technology. Mercedes is attempting to address the Level 3 dilemma of allowing the driver to relax and disengage from driving while still being ready to spring back into action at a moment’s notice by limiting the use of Drive Pilot to highways where traffic density is high, i.e. in traffic jams. While that may not quite be full autonomy, it should at least allow the driver to answer emails, watch a movie, text, or simply take their complete focus off the road during their commute.

  In addition to Drive Pilot, Mercedes announced that its Automatic Lane Change (SLC), which can automatically initiate a lane change and overtake slower vehicles while cruise control is engaged, will also be rolled out in North America later this year. Per the report, the new system will be available on the Mercedes S-Class and the all-electric EQS.

• The government has questions about Elon Musk’s Full Self-Driving tweet (The Verge, January 8, 2023)

  Elon Musk is raising eyebrows again—this time from within NHTSA—over the substance of a tweet. On December 31, Whole Mars Catalog tweeted that “users with more than 10,000 miles on FSD Beta should be given the option to turn off the steering wheel nag.” (The article explains that, by “steering wheel nag,” the tweet referred to Tesla’s “hands on wheel” driver monitoring system.) Musk responded, “agreed, update coming in Jan.”

  Regulators took notice. Although the scope of the investigation is unclear, NHTSA has confirmed that it “reached out to Tesla to gather information.” Read more from Reuters here.