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CAR Discusses This Week's Hot Topics

Michigan Business Network
January 24, 2022 4:00 PM

carsThis week, autonomous technology was featured in much of the news, focusing on safety and significant investments and partnerships. We also saw interesting developments in the e-commerce space as the pandemic continues to shift consumer purchasing trends. Lastly, we monitor how COVID-19 surges and vaccine mandates impact the global supply chain and auto manufacturing.


As the microchip crisis continues to plague the automotive industry and beyond, we have migrated all news updates related to the shortage to our website. You can stay informed on the automotive impact of the global chip shortage by visiting here.If you missed Carla's previous Hot Topics email, you can read it here.We would love to hear from you and welcome your questions at any time. If you're interested in sharing your thoughts with us on hot topics, or if you would like to ask us a research question, please reach out to Katie Ramsburgh.

Hot Topics of 1/17/2022 - 1/21/2022

Driver Assistance Systems Safety

My thoughts:

In my view, this diligence to measure and validate ADAS systems is needed. We have proliferated systems throughout the industry with different names and operating modes. This proliferation has caused customer confusion and concern – so much anxiety that customers often turn off the systems meant to keep them safe.As we move towards “quasi self-driving” modes, there is even less clarity in terms of requirements. Should this lack of clarity continue, the customer will lose faith, which sets the entire industry back in time in terms of deployment. The industry needs to work with NHTSA, IIHS, and more to agree on the system standards required to certify these systems and products.CAR will be holding a webinar with AAA, IIHS, and Consumers Reports to address this topic on Wednesday, February 16th from 1 – 2 EST. HERE >>> is the registration link.

Autonomous Technology Investments & Partnerships

My thoughts:

As automakers continue to work toward autonomous vehicles, it has become readily apparent that many elements are needed to “technically” make these systems feasible. This knowledge doesn’t exist in today’s automaker workforce, and partnerships are required to gain this expertise.Beyond just cars, the focus has shifted to autonomous trucks and delivery services. The supply chain shortage will continue to be plagued until we can deploy autonomy, drones, robots, and more to support the burgeoning need for products demanded by the consumer. The articles above demonstrate the need for trucking partnerships and forklifts. BUT, at CES, we observed robots doing much more in the commercial goods space from inventory, stocking, clearing snow, working in hospitals, and countless others. As we are faced with a worker shortage in so many areas and flat population growth, we need some “mechanical” help with “artificial intelligence” to “get the job done.”

E-Commerce

My thoughts:

Consumers are driving the change in e-commerce, and this, combined with more efficient transactions, will continue the trend at lightning speed. There is money to be made outside of manufacturing and selling vehicles to dealers. Start-ups in the automotive industry continually demonstrate this fact, and the legacy automakers are quickly taking action to stay “in the game”. Digitization of your company and user experience is critical to your survival and sustainability. It will be interesting to see who jumps on board and who may be left treading water until they sink.

Manufacturing & COVID-19

My thoughts:

My initial thought is, isn't this over yet? I know so many people are struggling with COVID for themselves, their families, their employees, and I sympathize with their plight. At CAR, we’ve seen a resurgence with Omicron, and some who thought they were “safe” actually became ill. Thankfully, not critically, but the impact on families and business is huge.We are seeing this same result on a global scale as well. This pattern of mutations and spikes is expected to continue until it becomes an endemic like the flu. Many of us are ready for the endemic phase to happen. However, we are seeing disruptions again in the automotive factories and suppliers globally in the meantime. At CAR, we are carefully watching to determine the impact on the 2022 SAAR.My last point is about the vaccine mandate, which has been rolled back again in the US and is leaving it up to companies to manage. In my view, at this point, we may have reached the maximum percentage of people willing to be vaccinated, although it is still good to continue to request. For the companies struggling with workforce issues, let’s give them a break and allow them and their employees to be adults and manage themselves and their health following COVID protocols for exposure, etc. Business is so stressed – let’s not add to it and expect all to do the right thing. 
Bailo-2 (1)-1Best Regards,

Carla Bailo
President and CEO
Center for Automotive Research

 
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Michigan Business Network is an online broadcasting company that provides knowledge, news, and insights into Michigan’s businesses, industries, and economy.