So we’ve outlined 3 of the biggest talking points in the automotive sector to get you up to speed with some of the latest developments.
1) Investigation into fatal accident involving driverless technology
There’s been a lot of discussion lately about the development of driverless vehicles and how this represents the future of automotive transport.
One of the biggest talking points is the issue of safety when allowing the car to take over and control the journey. The recent investigation into the fatal accident involving Tesla’s Autopilot feature demonstrates the seriousness of this debate.
The United States Highway Traffic Safety Administration has recently announced they will be launching an investigation into a malfunction of Tesla’s Model S Autopilot function following a fatal accident in Florida.
Essentially, Tesla’s Autopilot feature uses an array of sensors to gauge the surrounding environment, intelligently assisting the driver with steering, changing lanes and regulating speed, amongst other features.
Having said that, it’s important to point out that Tesla’s Autopilot feature may not necessarily be considered as a pure representation of driverless technology. The feature still requires the driver to have both hands on the wheel and will remind the driver to do so if hands on the wheel aren’t detected. Tesla’s Autopilot function might be better described as semi-autonomous.
Still, the Autopilot feature represents a step towards handing over the reigns to the car’s computer system, in attempts to introduce completely driverless technology into mainstream vehicles. No doubt driverless vehicles would afford considerable advantages to a lot of people. For example, many disabled individuals who would normally rely on others for transportation, would now be able to rely on a self-driving car. But with that comes all of the considerations of the risks to passengers and to other cars on the road when relying solely on the car's internal computer system to get you from one place to another.
The tragic case involving the Tesla Autopilot feature malfunction is perhaps telling us to take a step back from the excitement around driverless vehicles. It’s imperative to make sure that we have a complete understanding of all the risks of introducing driverless technology onto the road before we get ahead of ourselves with innovation for the sake of innovation.
2) Renault and Nissan enjoy €4.3 billion in savings
Through a synergistic strategic alliance, Renault and Nissan have announced savings of €4.3 billion in 2015.
The automotive giants attribute their success to the convergence of four business functions; Engineering, Purchasing, HR and Manufacturing Engineering and Supply Chain Management.
Through this synergistic alliance, Renault and Nissan have been able to reduce their costs and increase their revenues, with expectations of this trend to continue.
An important result of this alliance is the successful launch of the Renault Kwid and Datsun Redi-go vehicles in the highly competitive Indian market. Few OEMs have been able to cater to the specific needs of this market, demonstrating the power and competitive advantage afforded by this strategic alliance.
3) VW dieselgate settlement…for nearly $15 billion
Following the embarrassing scandal involving VW cars being sold in America with software that could cheat emissions tests, VW is settling with government regulators and plaintiff’s lawyers for $14.7 billion.
For owners of VW vehicles in the U.S, they’ll be able to trade in their cars to VW dealers by October and could also be entitled to up to $10,000 in compensation.
However, European customers shouldn’t expect the same kind of compensation. Chief Executive Matthias Müller has recently made it clear that European customers who purchased VW vehicles with the cheating software, won’t be offered the same level of compensation as their American counterparts.
Mr Müller claims legislative differences between Europe and America, particularly the tougher U.S emissions standards, has made it harder to fix the cars to meet U.S requirements. Hence, larger compensatory payments made in the U.S.
While the dispute goes on, it’s safe to say that this probably won’t do VW’s reputation much good, particularly with their European customers.
Overall, 3 important talking points in the automotive industry include;