Gasoline prices in the U.S. are caught between an uptick in holiday travel and the fear of the impact of new variants of COVID-19, resulting in downward pressure on prices.
The average price for gas in the U.S. is $3.30 per gallon. California averages $4.66 a gallon.
GasBuddy.com, which tracks the price of gasoline nationally, reported the average price of a gallon of gasoline is now $3.30. It dropped by more than a half-cent earlier this week and is down 2.6 cents per gallon from last week.
The prices are down 11.5 cents per gallon from last month when prices peaked across the country ahead of the Thanksgiving holiday prior to the appearance of the Omicron variant of COVID-19, which is creating new turbulence throughout the economy.
Factors in the decline
AAA noted in its weekly report on gasoline prices the demand for fuel increased as consumer confidence jumped heading into the holiday season. However, fears of the COVID-19 omicron variant’s economic impact may threaten future global oil consumption, AAA said.
President Joe Biden noted gas prices have returned to pre-pandemic levels this week.
“A recovering economy coupled with strong employment is leading to increased demand for gasoline,” said Andrew Gross, AAA spokesperson. “This demand increase should drive pump prices higher, but it’s been blunted by the wavering price of crude oil.”
According to recent data from the Energy Information Administration, or EIA, total domestic gasoline stocks decreased by 700,000 barrels to 218.6 million barrels last week, AAA said.
In addition, fluctuations in the price of crude oil put downward pressure on prices. Last week, crude prices crept above $70 per barrel and if oil prices continue to climb, pump prices will likely follow suit.
Oil prices waver on news
Overall, crude prices declined last week due to growing market concerns that the omicron variant of COVID-19 will lead to a decrease in demand as governments around the globe increase measures to curb transmission rates. The EIA reported gasoline stocks are 14% lower than mid-December 2020. For this week, crude prices could drop further if omicron concerns carry on.
Meanwhile, President Joe Biden observed this week in 21 states the price of gasoline is the same now as it was at point in 2019 before gasoline prices sunk on heels of a global recession that followed the outbreak of the COVID-19 pandemic.
Among the states with the largest declines in prices were Indiana and Michigan where prices dropped by six cents per gallon. In Ohio, Arizona, Illinois it dropped by a nickel per gallon and Florida and Colorado it was down four cents per gallon, according to AAA.
AAA said the most expensive gasoline was in California, which is generally the case, where it averaged $4.66 per gallon. Prices in Oregon and Nevada averaged $3.86 per gallon.
Ford announced it’s recalling almost 185,000 F-150 full-size pickups. The 2021 and 2022 model-year trucks are experiencing driveshaft problems that could cause it to fracture.
Ford is recalling nearly 185,000 F-150 pickups from the 2021 and 2022 model years.
The truck’s underbody thermal/acoustic insulators can loosen over time. If they come in contact with the truck’s aluminum driveshaft, they can cause scoring or marks. If this goes on long enough, the heat generated each time can eventually crack the driveshaft.
Potential results if the issue is not repaired
“A fractured driveshaft may result in loss of motive power,” the report states, “unintended vehicle movement while the vehicle is in park if the parking brake is not applied, and may result in secondary damage to surrounding components.”
Additionally, once fractured, the driveshaft could break loose and touch the ground, causing the driver to lose control of the pickup, potentially resulting in a crash. The company is unaware of any accidents or injuries caused by the problem.
Some Ford F-150 pickups are facing issues with the aluminum driveshaft on the truck.
Owners are advised to look for a “loose underbody insulator.” They should also listen for a rattling, clicking or clunking noise due to the loose insulator coming in contact with the driveshaft. The scoring or marking on the driveshaft described earlier may also be visible.
Next steps
Ford’s taken steps to resolve the problem during production by swapping the underbody thermal acoustic insulator for an under-carpet thermal patch at the two plants — Dearborn (MI) Truck and Kansas City (KS) Assembly — already.
Dealers received the notice Tuesday, and owners will begin receiving notices in the mail shortly. They will be instructed to make an appointment with their dealer to have “positive attachment features adde to the underbody insulators.”
They’ll also inspect the driveshaft for scoring or marks that may have already occurred. This will be done at no expense to the truck owner.
As of Dec. 7, Ford received 27 reports of fractured aluminum driveshafts possibly related to sagging underbody insulators on the F-150s, the automaker said in an Automotive News report.
Journalist Vince Patton demonstrates its possible to play video games while driving his Tesla Model 3.
The National Highway Traffic Safety Administration (NHTSA) it is investigating 580,000 Tesla vehicles sold since 2017 that allow those seated up front to play games on the infotainment touchscreen while the vehicle is in motion.
The formal safety investigation, which was announced Wednesday, covers 2017-2022 Tesla Model 3, S, X, and Y vehicles. NHTSA opened the investigation “based on reports that Tesla gameplay functionality, which is visible on the front center touchscreen from the driver’s seat, is enabled even when the vehicle is being driven.”
Tesla made the software more dangerous
The 2021 Tesla Model S gets an all-new interior, a yoke-style steering wheel and the updated software being investigated by NHTSA.
The feature, known as “Passenger Play,” increases the risk of a crash. Since December 2020, the feature can be used while driving. Prior to that, it could only be used when the vehicle was in Park. The agency said that it is evaluating aspects of the feature, including how frequently it’s used and when.
NHTSA is concerned about distracted driving, an increasing risk as automakers bring increased online connectivity to infotainment touchscreens. Distracted driving caused 3,142 deaths in 2019, all of them preventable.
While Passenger Play does have a warning stating the game is meant solely for passengers. Although it asks for confirmation that the player is a passenger and not the driver, there is nothing preventing the driver from playing while driving.
Other Tesla safety issues
Consumer Reports criticized the performance of Tesla’s latest version of Autopilot.
It’s not NHTSA’s only Tesla safety investigation, nor Tesla’s only safety issue.
In August, the agency opened a formal safety investigation of 765,000 Teslas equipped with its Autopilot driver-assistance system after 11 crashes involving parked emergency vehicles killed one person and injured 17. The inquiry covers 2014-2021 Models S, X, Y and 3.
In October, Tesla had to roll back full self-driving, or FSD, with Musk revealing that the company is “seeing some issues with 10.3, so rolling back to 10.2 temporarily.”
And in November, Tesla issued a recall for 11,704 vehicles sold in the U.S. since 2017. The recall covers Model S, X, 3 and Y vehicles and came about as a result of an over-the-air firmware update of the automaker’s “Full Self-Driving Beta,” its advanced driver assistance system.
The company identified a software communication error that could cause the forward-collision warning or automatic emergency brake system to falsely activate, possibly leading to a rear-end collision.
Other OEM infotainment issues
The new Mercedes-Benz EQS was recalled after it was found that its MBUX system allowed television and internet to be displayed while driving
Other automakers are far more concerned over distracted driving than Tesla. On November 29, Mercedes-Benz recalled 227 vehicles in the U.S. after the company discovered that its MBUX infotainment system allowed television and internet to be displayed while driving.
The recall affected 2021 Mercedes-Benz S580, 2022 EQS450, EQS580, and S500 models. Mercedes-Benz has already corrected the problem, and no deaths or injuries seem to have resulted from the problem.
Musk pays billions to satisfy tax bill
In other Tesla news, Reuters is reporting that Tesla CEO Elon Musk sold 10% of his own company stock, 13.5 million shares, 8.06 million of which were sold to pay taxes. The billionaire said he is paying more than $11 billion in taxes this year.
Tesla CEO Elon Musk slammed California over its tax policy.
“California used to be the land of opportunity and now it is … becoming more so the land of sort of overregulation, overlitigation, overtaxation,” Musk told Reuters, adding his combined federal and state tax rate tops 50 percent.
The company has submitted all the documentation required to get its factory approved near Berlin, Germany. Approval of Tesla’s newest manufacturing facility has been delayed by environmental concerns and red tape due to Tesla’s decision to add a battery factory to the site. That has delayed the approval process. It remains unclear when the new plant is expected to open.
As part of a $37 billion program, General Motors plans to bring at least 30 battery-electric vehicles to market by mid-decade — but it is expanding its electrification strategy to power up pretty much anything “already on the road,” as well as on the water, it announced on Wednesday.
GM looking to electrify “everything,” including offering conversion kits as well as packages for vehicles like this jet tug.
The largest of the Detroit automakers’ Electric Connect and Cruise eCrate systems will allow owners to swap out their conventional gas engines in classic vehicles like the Camaro and E-10 pickup for battery-drive technology. GM also is looking to power up cargo tractors and other airport gear, while also working up ways to bring electric propulsion to the marine industry.
“GM has an established strategy, network of integrators and co-development agreements to apply an extensive array of components and solutions to a broad range of customers and use cases,” said Travis Hester, GM vice president of Electric Vehicle Growth Operations, in a statement Wednesday.
The carmaker estimates there’s a “total addressable market” for swapping conventional drive systems for battery power that could approach $20 billion by 2030.
“As companies across many industries look to reduce their environmental impact, GM is uniquely positioned to serve as a leader not only through exciting new EVs across our brands, but through additional technology applications,” said Hester, “and we look forward to bringing customers — existing and new — along with us on our zero-emissions journey.”
Chevrolet showcased a 1977 K5 Blazer converted to all-electric propulsion at SEMA360 in 2020.
Converting to electric
Demand for conversion technology is already on the rise. There’s been a flood of startups converting classic vehicles, including vintage Camaros, Porsches, Volkswagens and Land Rovers, to run on battery power.
GM targeted the conversion market with the launch of the eCOPO Camaro project car at the SEMA Show several years back, and has revealed other project cars like Project X and the 1977 K-5 Blazer. It is getting ready to provide what are essentially plug-and-play packages, like the Cruise eCrate and Electric Connect, to simplify the process. The goal is to allow owners and conversion companies to make a swap with a minimum of effort.
The Detroit automaker isn’t the only one sensing an opportunity here, however. Ford recently demonstrated the potential for its own Mach-E crate motors, which, as the name implies, uses hardware and software borrowed from its Mustang Mach-E battery-electric SUV. The conversion package can be plugged into classic products such as a 1978 Ford F-100 pickup. Volkswagen and Tesla have also gotten into the game, the latter automaker’s electric drive technology used by one conversion fan on a Rolls-Royce once owned by Johnny Cash.
Multiple applications for electric motors
But GM’s strategy isn’t limited to road-going vehicles.
It’s teaming up with Textron Ground Support Equipment Inc., a Textron subsidiary, to power up ground support equipment like the cargo and baggage tractors, belt loaders and Tug equipment found at commercial airports. Electrifying those vehicles promises to reduce emissions, as well as operating costs, while improving reliability, experts claim.
Commercial fleets, in general are showing strong interest in making the switch to battery power. GM this month began delivering the first of its BrightDrop delivery vans, joining competitors like Ford and Rivian in a market that could rapidly grow this decade, according to industry forecasts.
The opportunity to electrify isn’t limited to ground vehicles, however. A number of manufacturers are looking at ways to harness battery and hydrogen fuel-cell technology for other transportation and cargo applications. Rolls-Royce recently set a speed record with an aircraft outfitted with one of its drive systems. Airbus just released plans for a hydrogen turbofan system.
GM sees big opportunities coming in the marine world. It recently announced a strategic investment in the Seattle-based Pure Watercraft. The move, the automaker said, “represents an opportunity to bring EV technology to the marine industry and help preserve enjoyment of the outdoors for future generations. Together, the two companies will develop and commercialize battery electric watercraft, to accelerate the transition to electric mobility.”
GM also has been exploring ways to electrify the rails. Last June it announced another partnership with Wabtec, one of the largest providers of freight locomotives. Under a non-binding agreement, the automaker will provide both battery and hydrogen fuel-cell systems for prototypes like the Wabtec FLXdrive. Eventually, the technology could replace the conventional diesel-hybrid systems that dominate the rails today.
Who would have thought you could make the Rolls-Royce Ghost look so sinister?
Rolls-Royce revealed a new addition to the Rolls-Royce Ghost line-up in Miami Thursday — the Black Badge — during a North America dealer meeting that saw about 100 retailers meet with the automaker’s top executives.
The automaker revealed the new model to dealers at the Mad nightclub in the hip and trendy Wynnewood section of Miami, and will do the same for customers later this week.
“We just felt this was very Black Badge,” said Richard Carter, director of communications for Rolls-Royce Motor Cars. “It’s very, noir; It’s very alternative; and that’s the essence of Black Badge.”
The Rolls-Royce Ghost Black Badge expands a line-up that began with the Wraith coupe, followed by the Phantom sedan in 2016, the Dawn cabriolet in 2017 and the Cullinan SUV in 2019. The murdered-out Black Badge models now account for more than 27% of Rolls-Royce sales worldwide, including 40% of Cullinan sales.
The darker side of opulence
To realize the Ghost Black Badge’s menacing demeanor, the company uses 100 pounds of the industry’s darkest black paint. The Spirit of Ecstasy and Pantheon Grille are darkened using a chrome electrolyte applied during chrome plating. The new model wears exclusive 21-inch wheels with as many as 44 layers of carbon fiber.
The 2022 Rolls-Royce Ghost Black Badge can be had in more that 44,000 different hues, although most Black Badge customers choose black.
As you’d expect, interior components are darkened including air vents and the wood veneer, along with Black Badge badging and other unique interior touches, although clients are free to specify any number of colors and trim to be used on the car’s interior.
Engineers also contributed, fitting larger air springs to alleviate body roll during assertive cornering. There’s also roughly 29 additional horsepower and a revised transmission to make the Black Badge a bit more athletic. They also reduced brake pedal travel.
A quick turn behind the wheel of pre-production prototypes revealed a car that can be driven more aggressively than your average Ghost. Grip is impressive while cornering, staying firmly planted despite some noticeable body roll. Body motions never become excessive, and rebound over bumps is very well controlled. Yet its agility doesn’t come at the expense of the brand’s legendary comfort.
An idea born in Beverly Hills
The idea of Black Badge occurred in 2014 in Beverly Hills.
“This whole notion of the alter ego of Rolls Royce, the slightly noir, naughty, edgy side of Rolls Royce is something that we were thinking about. We were looking at ways and means of lowering the age profile of our brand,” Carter said.
The Pantheon Grille and Spirit of Ecstasy also receive the Black Badge treatment.
At the time, the brand had one model, the Phantom, and an average buyer’s age of 57. “We were selling one model to a dying set of customers, and there was no future in that,” he said.
At the time, the company was about to release the first-generation Ghost, followed by its two-door spinoff, the Wraith, both of which would attract younger buyers. But the company needed more. They were searching for an idea, but hadn’t settled on anything yet.
Torsten Müller-Ötvös, chief executive officer, Rolls-Royce Motor Cars, was waiting for a car to pick him up at the SLS Hotel in Beverly Hills when a murdered-out Phantom Coupe pulled up. Ötvös was stunned, and asked the owner why he modified his Phantom.
“He told me over the weekend, that he wants to be a different kind of character,” Ötvös said. “For some of the week, he is friendly and nice. But over the weekend, he wants to be something different. He enjoyed playing a different role; how he was dressed, looked and talked.”
A couple weeks later, Ötvös had similar experiences particularly in the United States, particularly in California. This led to the creation of Black Badge at a time where murdered-out cars weren’t mainstream.
A surprising success
The Ghost Black Badge is revealed for the first time at the Mad nightclub in Miami.
Initially, executives expected Black Badge models to have a 10%-15% take rate. But they were mistaken. It turned out to be a stunning success, with a far higher take rate. Currently, Black Badge represents 40% of Cullinan sales. Black Badge, along with new models like Ghost, Wraith and Cullinan, have brought the average Rolls-Royce buyer’s age down to 43, quite a large drop in a little less than a decade.
“We are even younger than Mini as a brand in the BMW Group,” Ötvös said, who then explained that the type of wealthy car buyer has changed.
“When you look into ultra-high net worth individuals, those people who are our target group worldwide, they became younger and younger over time because the way to generate wealth is very, very different from what it used to be 15-to-20 years ago.”
Rolls-Royce sees its Black Badge line as one that appeals to iconoclasts, a type of buyer that the brand has always attracted, particularly during the pre-World War II years, when all coachwork was custom built.
“Black Badge was the most instrumental piece we had in an all-new brand strategy to massively decrease the average age and illuminate the brand in a significant way,” Ötvös said.
The new Mitsubishi Outlander already has proven to be one of the most important products the long-struggling automaker has launched in its bid to become relevant to U.S. motorists again. Now, Mitsubishi is hoping to gain even more traction with the upcoming launch of a plug-in hybrid version.
The gas-powered 2022 Mitsubishi Outlander made its debut in February.
The Japanese automaker claims it will yield more range than the old Outlander PHEV, at an estimated 87 km, or nearly 55 miles, per charge — though that’s using the global WLTP test cycle and will likely come down once the American version is tested by the EPA.
“With low (carbon dioxide) emissions and environmental impact from manufacturing and use,” said Takao Kato, MMC’s president and CEO, “the all-new Outlander PHEV model can be considered the best solution for carbon neutrality today.”
Updated, upgraded drivetrain
The Outlander was first introduced in 2001 and, with the fourth generation, it has become a core part of the brand, accounting for about 20% of its global volume. The first plug-in hybrid version was unveiled at the 2012 Paris Motor Show. It produced a combined 197 horsepower by pairing a 2.0-liter inline-4 gas engine with twin 60-kilowatt electric motors drawing power from a 12 kilowatt-hour lithium-ion battery pack.
The new Outlander PHEV gets numerous powertrain upgrades, though the automaker isn’t releasing hard specs yet. In a statement announcing the new vehicle it said the plug-in gets “an increase of around 40% in the output of the front and rear motors and drive battery.” The lithium-ion pack, it did note, jumps to 20 kWh. The gas engine, added a spokesman, is a “slightly updated” version of the old PHEV’s 2.4-liter package.
The new Outlander plug-in hybrid will arrive in the U.S. in the second half of 2022.
Mitsubishi also revealed, “The power drive unit for the front motor is newly equipped with a booster function which bolsters driving force by raising the supply of voltage to the front motor while simultaneously improving electricity consumption by raising the efficiency of the generator.”
Third row added
The automaker also took steps to downsize some of the hardware, notably the rear motor and control unit. As a result, the new plug-in will gain room for a third row yielding space for seven occupants.
The drive system now will allow One-Pedal Driving, as well, a feature that effectively allows motorists to minimize the need to jump from throttle to brake when driving in light to moderate traffic. That feature was found to be extremely popular with EV owners, according to the recent J.D. Power Technology Experience Index.
With only modest tweaks, the plug-in adopts the same exterior and interior design as the gas-powered Outlander. The overall strategy is based on a concept dubbed “I-Fu-Do-Do,” which means “authentic” and “majestic” in Japanese.
New design
The new Outlander PHEV is expected to travel more than 55 miles in electric-only mode.
The fourth-generation Mitsubishi Outlander adopted a new styling language called “Dynamic Shield.” Up front, it features a more upright nose with a pinched, dual-level grille and stacked headlamps. From the side, the SUV features a more deeply sculpted silhouette with a bit of a floating roof element.
The automaker clearly wanted to give the new Outlander a more solid and robust look, with such touches as 20-inch wheels and tires and what it calls the Hexagon Guard rear end.
The new SUV grew larger in virtually all dimensions, the width expanding by 2 inches. That means the cabin of the new Outlander is both wider and more spacious than the outgoing model, Mitsubishi adopting more upscale materials and features like tri-zone climate controls, real aluminum panels and a 12.3-inch touchscreen infotainment display.
The gas-powered Outlander is powered by a 2.5-liter inline-4 that bumped up power by 8.9 percent. At the same time, it reduced fuel consumption by 2.6 percent.
Pricing TBD
Many of the features from the current model are expected to carry over into the PHEV, though Mitsubishi hasn’t provided specific details. The gas model offers Hill Descent Control and Trailer Stability Assist. A Multiview camera system helps drivers see what’s around the vehicle, whether on-road or off. Other features for the new Mitsubishi Outlander include a power-operated panoramic roof and an electrically operated tailgate that can be opened with a kick of the foot under the rear bumper.
Pricing for the gas model starts at $25,795 — plus $1,195 in delivery fees. Pricing for the PHEV is expected to run higher, though the numbers won’t be released until closer to sales launch. That holds for a variety of other specs, including U.S. range, power and performance.
“Sales will commence in Japan on Dec. 16, followed by Australia and New Zealand in the first half of 2022 and North America in the second half of 2022,” Mitsubishi said in a statement. While it did not offer specifics, that would suggest that the Outlander PHEV will be marketed as a 2023 model in the U.S.
To the surprise of no one, a new study completed by the Insurance Institute for Highway Safety confirmed brighter headlights help reduce vehicle collisions.
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.
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.”
When the Mercedes-Benz EQS rolls into showrooms later this month it will become the luxury brand’s first all-electric vehicle targeting the U.S. market. But it certainly won’t be the last. If anything, Mercedes plans to roll out a broad line-up of battery-powered products, from the little EQB crossover to an all-electric version of the big G-Class SUV.
Mercedes-Benz Cars CEO Ola Källenius is leading the company through one of its biggest transitions in its history. He talks with TDB.
Until a few years ago, Mercedes put its primary focus on diesel, but it changed direction in the wake of an embarrassing emissions scandal — and in the face of increasingly stringent global emissions standards. By 2025, the goal is to have plug-in hybrid and all-electric models account for 50% of the company’s worldwide sales. By 2030, CEO Ola Källenius announced in July, the target is 100% BEVs “where market conditions allow.”
The Swedish-born executive — the first non-German to helm Mercedes since it was founded — is a true believer in electrification, as he made clear during a virtual interview with TheDetroitBureau.com and a handful of other journalists.
TheDetroitBureau: From your perspective, how has the (industry’s) approach to electrification changed? It appears things are ramping up at a faster and faster pace. Why is that happening?
Källenius: If we look back in history, when one technology replaced another … for the longest time, it seems like nothing is happening. Then, it happens all at once and the whole market flips. It goes very fast. If you miss that point that can be very unfortunate for your business with the development cycles we have in the auto industry. From the first stroke of a pen to have the first vehicles from a completely new architecture (is) usually a four- or five-year process. So, we are now upping the bet.
TDB: But why such a big investment?
Källenius: I’m ever so slightly biased but I think the EQS is a phenomenal vehicle and can imagine what the electric car will look like 10 years from now. I think there’s optimism in terms of the technology, with better energy density on the battery side. Cost are scaling (down) and we’re pushing to an inflection point where the new technology will be superior to what we have now.
Källenius with an assortment of new and upcoming EVs and PHEVs.
Drivers of change and acceptance
TDB: Is the shift being driven by new regulations?
Källenius: Partly, it is regulatory driven, but it’s through one common purpose we have as mankind, to solve the CO2 problem. It’s not going to go away. Climate change is real and the Paris Agreement is the right thing to do. It’s a Herculean task for humanity, a complete paradigm shift over to new energy sources. A company like Mercedes, in the luxury car (market), can be on the forefront of such a shift.
TDB: What is the key obstacle to consumer acceptance? Is it the lack of a solid charging infrastructure?
Källenius: Something that could make this happen a little faster or a little slower is the infrastructure. People aren’t going to (drive) less. In fact, we believe people are going to (drive) much more 10 years from now. So, here, industry and government need to work hand-in-hand to put in (a charging) infrastructure. The quicker that happens, the quicker the shift. In markets that don’t do this, it will be an obstacle that makes the transition to EVs go slower.
TDB: It certainly appears investors want automakers to shift to electric.
Källenius: Every conversation that we have with investors, even rating institutes like Standard and Poor’s and Moody’s, the financial markets have made up their minds. It’s going to be increasingly difficult to find capital to invest in (internal combustion) technology, and everybody is betting on the new technology so in a way the market economy and allocation of capital is pushing this forward.
The EQS is leading Mercedes move into the all-electric future, signifying the company’s commitment to that path.
New set of competitors
TDB: Not only do you have to compete with legacy automakers but you have to now start competing with this wave of EV startups, what’s the unique challenge there when it comes to competing with nascent EV makers? How do you compete with them?
Källenius: It’s natural that new players look at a market and enter and so the competitive intensity in this decade will likely be higher than what we have experienced in the past. We are taking the usual suspects seriously, as well as the new kids on the block. You cannot run around like a headless chicken chasing this that or the other company, you’ve got to know who you are. In this situation you cannot rest on your laurels, you have to look forward. So, what we need to do is to double down on technology, primarily electric drive and software and the connected vehicle and autonomous driving. But, at the same time, (we must) deliver what everybody expects from a Mercedes, you know this sublime ride and drive the equation to detail this superior aesthetic quality. If we hit the spot (and) deliver on both innovation and the luxury aspects of the Mercedes brand, that’s how we think we can win the competition.
TDB: You have been a powerhouse in the all-electric Formula-E series. What are your future plans?
Källenius: We won the championship this year and we’re going to have one more season, but beyond that season, we’re focusing everything on Formula One. We’re going to turn to synthetic fuels so we can run the whole race carbon neutral. I’ve been to a few Formula E races myself and enjoyed it as a racing fan, but if you would take one of those cars and go to Spa, you would maybe do a lap and a half and then it would be over. So for those who are, you know, hardcore racing fans at heart, you can’t replace (traditional racing cars with electric).
The new EQE is the battery-powered alternative to the marque’s classic E-Class sedan.
TDB: Can you talk about the role of electrification in motor sports?
Källenius: I actually had the privilege back in 2008 to develop the very first performance hybrid for Formula One. And now we are (more than) 10 years later, and you can’t win the world championship, unless you have the best performance hybrid system. And what we’re now launching in the AMG GT is the first road version of that technology. It will be on many of the AMG cars that we’re going to launch in the next two to three years. Formula One is the most sophisticated high performance Lab in the world.
TDB: This raises the subject of EV performance. It appears that one of the things drawing people to EVs is the great performance they offer.
Källenius: The great thing about an electric motor is that the torque is instantly available, and you have a lot of torque. So, at a red light, we all feel like we’re driving an AMG GT, right. You have this instant punch. Maybe you saw that we bought the UK company, Yasa, that is developing an electric motor with an absolutely phenomenal power-to-weight ratio. So there will be there will be a performance dimension beyond just being quick at the red light.
Advanced technology pros and cons
TDB: You’ve introduced the Hyperscreen in the EQS (which covers virtually the entire instrument panel with video screens). Do you think they’ll ever be a move back towards more simplification for an older demographic that can’t take advantage of most of what it can do?
Källenius said the the future of vehicles is going to look a lot more like the Hyperscreen than with knobs and buttons.
Källenius: I read an article the other day in a Swedish supercar magazine and the chief editor wrote an article where he says I hate screens. Give me the knobs back, the buttons and the knobs. But I’m afraid that’s probably not going to happen. And it’s not specifically tied to the electric car and we’re not doing some different level of digitization in our combustion based vehicles and our electric vehicles, per se. We need to make (technology) more intuitive and easy to use, but we’re not going back and put 50 different knobs and buttons in the car. I just don’t see that.
TDB: Who is the most difficult person to convince (about) electrification?
Källenius: People that buy a G Wagen, an S-Class, or maybe an E … they usually are technology and innovation-minded, and also appreciate luxury aesthetics. They are naturally going to drift to whatever is the next level technology. I think there is some skepticism, but I think it will recede.
TDB: What are you going to do about recyclability of materials?
Källenius: Next to the challenge of CO2 for us, as an industry, is the circular economy, what we call resource preservation. It’s hugely important. Our vehicles, already today, are 95% recyclable. That doesn’t mean we already use 95% of the material. But we put in in our books to raise the amount for every new vehicle, and for beyond the usual candidates like steel. Recycling has to get into the polymers and other things inside the battery cells, no doubt about it.
TDB: One last question. You have the new EQS sedan, but you’ll also have an EQS SUV next year. And the same with the EQE. Won’t that create some branding confusion?
Källenius: Yeah. There are probably PhD thesis documents in marketing talking about nomenclature on the part of Mercedes. When I was in marketing and sales we said let’s clean this up once and for all, and we thought we did. Could we have done a GL QS or something like that (instead of EQS SUV)? We thought it was so obvious when you see the vehicle, you know whether you’re buying an SUV or a sedan. But maybe we didn’t succeed.
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.
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.
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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.
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.
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.
Acura’s move back to the future continued today with another glimpse at the next-generation model of the Integra compact sports car. The second photo released by the brand offers a pretty good look at the rear of the vehicle.
Acura’s been teasing the return of the Integra in 2022. The first picture was of the headlight above.
From the photo, it’s easy to see that it will definitely come back offering at least a four-door model, although the original came in both two- and four-door versions. This isn’t a compact car that goes fast, this is a compact sports car based on the long, low roof line.
It’s going to look pretty athletic based on the rear haunch of a quarter panel that blends into the taillights that sweep from the side of the car down across the back. That wide almost-expansive look carries over to the rear bumper runs from partway up each side of the car and across in a simple, sharp curve.
Honda’s sports and luxury brand first reintroduced the idea of the Integra’s return in the middle of August, as part of its return to conventional nomenclature.
At an event in Monterey, California leading up to the weekend’s Pebble Beach Concours d’Elegance, the Japanese automaker sent a flock of drones into the sky where they formed into the shape of the original 1986 sports coupe. Moments later, they transformed into a silhouette of what will be the next-generation Integra — and the number “2022.”
Soon afterwards, the automaker confirmed, “The Integra is back,” Jon Ikeda, vice president and Acura brand officer, declared. “I’m thrilled to say Integra is returning to the Acura line-up with the same fun-to-drive spirit and DNA of the original, fulfilling our commitment to Precision Crafted Performance in every way — design, performance and the overall driving experience.”
