Tag Archives: Regulatory

New IIHS Study Confirms Brighter Headlights Reduce Number of Nighttime Crashes

To the surprise of no one, a new study completed by the Insurance Institute for Highway Safety confirmed brighter headlights help reduce vehicle collisions.

Audi R8
In 2016, Audi’s new laser headlamps were brighter than conventional lights so the maker adjusted the lights to shine low and wide.

The organization noted the number of nighttime vehicle accidents are nearly 20% lower for vehicles with headlights earning a “good” rating in IIHS evaluation, compared with those with “poor” rated headlights. Vehicles IIHS rates as having “acceptable” or “marginal” headlights crash rates are 10% to 15% lower than for those with poor ratings.

“Driving at night is three times as risky as driving during the day,” said IIHS Senior Research Engineer Matthew Brumbelow, who conducted the study. “This is the first study to document how much headlights that provide better illumination can help.”

An evolving light 

Until recently, there was little need to evaluate headlights, as all cars used sealed beam headlights, a technology that became an industry standard by the 1940s. Like the lights in your home, sealed-beam and halogen headlights are incandescent. They use electricity to heat a bulb’s filament, which in turn produces light.

The addition of halogen gas in the 1960s allowed the headlight’s tungsten filament to generate a brighter light that lasted longer. In 1983, the Federal Motor Vehicle Safety Standard was revised, allowing for all composite headlight assemblies to have replacement bulbs. Yet overall, headlights had changed little since electric headlights first appeared on cars in 1898.

IIHS headlight crash reduction chart

That changed with the introduction of high-intensity discharge headlights, or HIDs. These are arc lamps, much like a neon sign, which produce light by the sparking an electrical arc between two conducting electrodes inside the bulb. Far more efficient than halogen lamps, they not only produce more light, but also use less energy and last far longer. 

Then, in 2004, the first LED headlights appear on the Audi A8. An LED a semiconductor that emits light when a current is passed through it, using far less energy than other types of bulbs. This led to the creation of LED Matrix headlights, which uses LEDs, sensors and cameras to light the road depending on road conditions. Now, automakers are starting to employ laser lighting, affording 1.25 miles of visibility.

Testing counteracts an outdated federal standard

Given evolving lighting technology, IIHS began evaluating headlight effectiveness in 2016 to counteract the federal government’s outdate lighting standard, one that considered all headlight types equal. The problem is, they’re not. Five years later, IIHS has rated approximately 1,000 different headlights, bestowing them with the same good, acceptable, marginal and poor ratings used for the crash test evaluations.

The IIHS’s new study shows that good-rated reduces driver injuries in crashes by 29% and the rates of tow-away crashes and pedestrian crashes by about 25%.

“Better scores in our headlight tests translate into safer nighttime driving on the road,” said IIHS’s Brumbelow. 

Despite the changes in headlight technology, the Federal standard for automotive lighting hasn’t changed significantly since 1968. What’s worse, the standard specifies minimum and maximum brightness for headlights without taking into account how well it is installed. The standard also lacks any regulations for newer technology, such as curve-adaptive headlights. 

To address such failings, the IIHS’s evaluation of vehicle lighting are done while driven on a test track. Performance varies considerably; current low beam headlights illuminate anywhere from 125 feet to 460 feet. That’s a difference of as much as 6 seconds when driving at 50 mph. The tests have compelled OEMs to improve the quality of their lighting, IIHS says. 

“Our awards have been a huge motivator for automakers to improve their headlights,” Brumbelow says. “Now, with our new study, we have confirmation that these improvements are saving lives.”

GM’s Ultra Cruise Will Leapfrog Tesla Autopilot, Offer Full Hands-Free Driving Virtually Everywhere

In the race to put self-driving vehicles on the road, General Motors may be ready to take the lead with the new Ultra Cruise system it plans to put on the road by 2023.

Cadillac plans to expand the rollout of Super CruiseTM, the world’s first true hands-free driver assistance feature for the freeway. Super Cruise will be available on all Cadillac models, with the rollout beginning in 2020. After 2020, Super Cruise will make its introduction in other General Motors brands.
GM is currently rolling out its original Super Cruise system on a wide range of products, including Chevy and GMC models, as well as those from Cadillac.

The new system will increase by tenfold the number of miles of roads GM’s Super Cruise system can operate on – and where the current system only can operate on limited-access roadways, Ultra Cruise will cover “every road including city streets, subdivision streets and paved rural roads, in addition to highways,” GM said in a statement announcing the new technology. At launch, Ultra Cruise will operate on 2 million miles of roads, said GM, with a goal of increasing that to 3.4 million.

With Ultra Cruise, GM seems positioned to leapfrog Tesla, the EV automaker that marketed the first “self-driving” system, Autopilot. Despite releasing a new update it refers to as “Full Self-Driving,” Tesla’s technology still requires drivers to keep their hands on the wheel at all times.

“Ultra Cruise is not just a game changer in terms of what it enables ­− a door-to-door hands-free driving experience − but a technological one as well,” said Doug Parks, GM’s executive vice president of Global Product Development, Purchasing and Supply Chain.

The race for autonomy

The auto industry is in a race to develop autonomous vehicle technology – with the eventual goal of having vehicles operate without the assistance of a human driver. GM’s San Francisco-based Cruise subsidiary recently won approval from the State of California to test prototype vehicles that don’t even have a steering wheel or other driver controls. But most experts believe that it will be late in the decade before such systems are ready for widespread use.

(Click to expand.)

In the meantime, the focus is on more limited systems that can reduce the role of the driver – though a motorist would still need to be ready to take control in an emergency, or if the vehicle were to travel outside a “geofenced” area.

A number of manufacturers are developing these systems – known in industry parlance as “Level 2 autonomy.” Tesla was first to market with the original Autopilot, GM following with Super Cruise which it is now rolling out on a wide range of vehicle lines.

Both have significant limitations and make various trade-offs. Tesla has dubbed the latest version of Autopilot “Full Self-Driving,” and many owners have been using the system hands-free. Some have been recorded going so far as to jump into the back seat while the vehicle is moving. But the automaker actually stresses that motorists need to maintain at least a loose grip on the wheel.

Tesla v GM

GM claims drivers actually can take hands off the wheel using Super Cruise. But the system is restricted to about 200,000 miles of U.S. and Canadian roads. And the GM system uses a camera to ensure that the driver remains alert and in position to take over quickly, if necessary.

Tesla FSD Simulation
A digital simulation of Tesla’s “Full Self-Driving” system.

Tesla has, until recently, not monitored the driver. But it plans to do so after coming under fire for the lax way in which many drivers use Super Cruise. In fact, the National Highway Traffic Safety Administration is conducting a probe of Autopilot in the wake of several dozen crashes, a number of those involving Tesla vehicles impacting stationary emergency vehicles.

“The way Tesla is doing it, there always will be error problems,” said Sam Abuelsamid, principal auto analyst with Guidehouse Insights.

Tesla relies on the data gathered by a network of cameras to operate Autopilot. GM, on the other hand, uses radar, as well as ultra high-definition street maps, with Super Cruise. And the Ultra Cruise system will add LIDAR, a 3D laser technology.

“This is a more robust solution,” said Abuelsamid. “They’ve taken a safer approach (even as they) expand tenfold the number of roads they can use Ultra Cruise on.”

No rollout roadmap – yet

The GM system will be able to recognize street signs and traffic signals, as well as pedestrians, bicyclists and animals. And it will be able to handle pretty much any sort of situation that a human driver would normally be required to negotiate, according to GM.

The automaker hasn’t provided a specific roadmap for rolling out Ultra Cruise but it’s expected to follow the same model used for the original Super Cruise system. That would begin with the flagship Cadillac brand and then expand to other GM brands.

Motorists pay additional fees for vehicles equipped with the basic Super Cruise hardware and GM recently announced that it will charge a monthly usage fee, as well. Tesla, Ford and other manufacturers are adopting similar pricing models.

GM’s Q1 Results Blow Away Wall Street Expectations

General Motors’ first-quarter financial results not only smashed through the automaker’s year-earlier numbers but also far exceeded even the most optimistic Wall Street estimates.

Despite production issues related to the ongoing semiconductor shortage, GM still posted stunningly impressive Q1 results.

The automaker on Wednesday morning reported net income of $3 billion, a 1,000% year-over-year increase, while EBIT-adjusted earnings of $4.4 billion were up nearly fourfold. Adjusted earnings per share of $2.25, meanwhile, handily exceeded the consensus forecast of $1.04.

“These strong results demonstrate once again the underlying strength of our business, especially in North America and China, and at GM Financial,” General Motors Chairman and CEO Mary Barra said in a letter to shareholders. “We continue to execute our strategy and make significant progress on our transition to an all-electric future with the growth opportunities it creates.”

Upturn expected

The first-quarter numbers were expected to show strong gains when compared to the results from January through March 2020. Like the rest of the industry, GM was hit hard by the COVID-19 pandemic last year, March bringing not only a massive downturn in sales but the start of what was to become a two-month shutdown of its North American assembly lines.

Since automakers make most of their money once vehicles roll out of their plants and are shipped to dealers, GM is likely to show continuing improvement during the second quarter of this year, according to industry analysts.

GM’s still expecting a $1 billion to $2 billion hit related to the chip shortage.

That said, Q1 2021 faced its own problems, largely linked to the pandemic. The most serious issue was the worsening shortage of the semiconductors that now are used in large numbers in every new motor vehicle. Like competitors such as Ford, Volkswagen and Toyota, GM was forced to slow down production on numerous models, including some of its most profitable pickups and SUVs. That shortage is expected to continue through much of the year, according to IHS Markit and other analysts.

There have been additional shortages developing, including petroleum-based goods like seat foam. Barra acknowledged these and other problems in her statement, noting, “This remains a challenging period for the company as we emerge from 2020, but the team continues to demonstrate its ability to manage complex situations.”

Few dark spots

Not all the numbers moved in the right direction for GM during the first quarter of this year. Revenues slid slightly, at $32.5 billion, a roughly $200 million decline. The automaker’s autonomous subsidiary, Cruise, saw its losses grow slightly, from $228 million to $229 million

But those were rare dips. The automaker’s net income margin surged from 0.9% to 9.3%. Income per share increased 262% to $2.25 – while handily beating analysts’ consensus forecast of $1.04.  

In the North American market, net income was up nearly a third, climbing from $2.194 billion to $3.134 billion. GM International posted $308 million in net income compared to a $551 million loss a year earlier. And GM Financial posted $1.182 billion in net income, up from $230 million.

GM CEO Barra told investors the forecast for the remainder of the year is positive overall.

Positive forecast

Looking forward, Barra told investors that, “While we will have production downtime in the second quarter, we expect to have a strong first half, with EBIT-adjusted of around $5.5 billion.”

The forecast for the rest of 2021 is positive overall, according to Barra. GM expects to see the EBIT-adjusted total reach the $10 billion to $11 billion range, or $4.50 to $5.25 per share.

But the numbers will still be weighed down by the chip shortage which is expected to deliver a hit of between $1 billion and $2 billion for all of 2021.

Stock rebounds

GM is the latest automaker to report a big rebound in first-quarter earnings. Last week its arch-rival Ford Motor Company weighed in with net income of $3.3 billion, the second-largest Detroit automaker’s best results in a decade.

Though General Motors shares surged to a 52-week high during the first quarter, its stock price has been on a downward slide since early April. But investors began driving the numbers back up again following GM’s early morning earnings announcement.

Tesla, GM May Get Eligibility for Federal EV Tax Credits Again

2021 Tesla Model S

Buyers the new Tesla Model S may be eligible for a $7,000 tax credit not previously offered.

Tesla and General Motors may be considered polar opposites in many ways, but in one very big way they’re going to be almost bosom buddies: tax credits for EVs.

The market leader in the segment and the hopes-to-be-leader in the segment are soon able to once again access federal tax credits for the next 400,000 electric vehicles each automaker sells, if a new bill from Democrats makes it into law.

The Growing Renewable Energy and Efficiency Now Act (yup, GREEN) provides a new set of tax incentives aimed at renewable energy technologies, or in this case, vehicles. GM and Tesla buyers could get $7,000 tax credits for new EVs, if it passes.

Government getting involved

Chevy Bolt buyers may get to claim a federal tax credit that had been previously unavailable.

President Joe Biden is a proponent for the growth of electric vehicles, pledging to add 1 million new automotive jobs related to EVs and growing the nation’s underwhelming EV charging network by 500,000 by the end of the decade.

The new bill submitted by Representative Mike Thompson (D-California), who is Chairman of U.S. House Ways and Means Subcommittee on Select Revenue, all the other Democratic leaders on the subcommittee signed onto the bill, hoping Congress will take it up under a Democratic-controlled Senate and the Biden administration.

A similar bill was introduced in June 2020, then controlled by Republicans, and it failed. It was the latest of several attempts to reinstate the previous $7,500 tax credit. Democrats have attempted to resurrect the credit several times, each effort shut down by Senate Republicans. Now that Democrats have the final vote in any deadlock, it seems likely to make it through.

How the tax credit used to work and the new version

The original credit, passed during the Obama administration, limited the number of vehicles eligible for the credit to 200,000 vehicles. Tesla hit the mark first in 2018, followed by GM shortly after. Tesla CEO Elon Musk cut the price on vehicles in the U.S. after to help partially offset the loss of the credit.

Used EVs, if they qualify, can fetch a $2,500 tax credit through the GREEN Act.

The new version cuts the credit by $500, but it also changes the structure of the credit phase out after an automaker hits 600,000 vehicles. The first plan reduced the size of the credit in stages over the course of 12 months following hitting the end number. Now it drops to $3,500 for one quarter and then disappears. Owners who bought vehicles in the interim are not eligible to claim the credit retroactively – at this point.

Additionally, the GREEN Act allows used buyers to claim up to a $2,500 tax credit when purchasing a qualifying preowned electric car. The EV must be at least two years old and the sale price cannot exceed $25,000. Income caps for individuals and spouses filing taxes jointly may result in smaller credits, however.

Businesses aren’t being ignored as the bill creates tax breaks for companies and municipalities purchasing electric heavy-duty vehicles, including zero-emissions buses. Twenty percent of the sales price would be eligible for sales over $100,000.

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Stellantis Enjoys Warm Welcome from European Investors

Stellantis Chairman John Elkann is meeting with the media tomorrow to talk about the company’s future.

Not every merger involving an automaker these days involves a blank-check company. The newly minted tie-up between Fiat Chrysler Automobiles N.V. and Peugeot S.A. was finalized over the weekend and the resulting company, Stellantis N.V., is enjoying a warm welcome.

At least on the stock market.

The new company’s stock trades on three exchanges and it finished the day on the Paris exchange up nearly 7%, closing at €13.14. It also jumped up 7.7% on the Milan exchange.

The New York Stock Exchange, the third exchange it’s traded on, was not open today due to the Martin Luther King Jr. holiday.

(Chrysler is no more as Stellantis comes to life.)

CEO Carlos Tavares has a lot on his corporate plate now that the merger is complete.

The $52 billion merger of near equals creates a massive enterprise with operations on six continents, employs about 400,000 people, sells – at least for the time being – 14 vehicle brands and sells 8.1 million vehicles annually, making it the fourth-largest automaker in the world behind Volkswagen, Toyota and the Renault-Nissan-Mitsubishi Alliance.

With all of those possibilities, it’s going to take a press conference Tuesday to start revealing what Stellantis will look like now that’s it’s a living, breathing entity. What brands will stay? How many workers will keep their jobs?

People are nervous because the CEO of the new enterprise, Carlos Tavares, has a history of being fearless when it comes to eliminating unprofitable operations and processes in the pursuit of corporate profit. One need only look at how what he did with former General Motors’ subsidiary Opel. A money-loser for a decade, he had it in the black in one year.

(FCA CEO Manley gets new assignment following Stellantis merger.)

“Stellantis faces a mixed outlook as U.S. stimulus plans may buoy Chrysler vs. a more uncertain outlook for Peugeot in Europe,” Michael Dean, BI automotive analyst told Bloomberg. “Former PSA CEO Carlos Tavares takes the helm and, similar to his handling of PSA’s takeover of Opel in 2017, we anticipate a new strategy in the first 100 days of his stewardship. All regions face a difficult 1H amid continued lockdowns.”

Quirky name aside, investors gave Stellantis a warm welcome when it began trading Monday.

The two companies have worked to allay fears of major cutbacks in France and Italy. While top managers have outlined plans to trim costs by $6 billion following the merger, they insist they will be able to do that without closing any plants. They have outlined 40% of those cost savings coming from purchasing, 40% from combining product development efforts, and 20% from marketing and other operations.

However, it’s unclear how Tavares plans to tackle other issues such as improving the company’s performance in China, the world’s largest automotive market, and bolstering its electrification efforts, especially in the aforementioned China as well as in the U.S. Just addressing those two issues are likely to require billions of dollars and euros. Some of plans for these things and more may get touched on Tuesday, Marco Santino, a partner at consulting firm Oliver Wyman, told Reuters.

(Fiat Chrysler and PSA not exactly a “merger of equals.”)

“He has proven to be the kind of person who prefers action to words, so I don’t think he will make loud statements or try to over-sell targets,” he said.

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