+++ American computer chip giant Intel is positioning itself to become a major player in AUTONOMOUS vehicle technologies by buying into leading tech companies and forging partnerships with motor manufacturers and phone companies in a rapid-fire expansion. This month alone, Intel has completed a 15.3 billion dollar buy-out of Israel-based driver assistance technology specialist Mobileye, joined a consortium of mainly Japanese companies including Toyota and Denso to develop new-generation car computing and mobile connectivity systems for the autonomous era, and welcomed Fiat Chrysler Automobiles (FCA) into an existing consortium with BMW to develop a world-leading autonomous car platform. Earlier this year, it announced it had shelled out 3 billion dollar for a 15 percent stake in the Here mapping service from majority owners BMW, Audi and Mercedes-Benz. Founded by Nokia, Here is a rival for Google in the global mapping sphere and a major supplier of sat-nav maps – including super-accurate laser-scanned 3D maps for next-generation vehicles – and related technologies that will be central to autonomous driving. In making these moves, Intel is ensuring it has plenty of skin in the autonomous vehicle game, thus taking the battle up to rivals such as Silicon Valley’s Google and Tesla. Announcing that FCA would join the BMW/Mobileye/Intel autonomous platform consortium, Intel CEO Brian Krzanich said the future of transportation relied on auto and tech industry leaders working together to develop a scalable architecture that auto-makers around the globe could adopt and customise. “We’re thrilled to welcome FCA’s contribution, bringing us a step closer to delivering the world’s safest autonomous vehicles”, he said. The original members of the consortium teamed up in July last year with the objective of developing highly automated (Level 3) and fully automated (Level 4/5) driving systems. The team says it is on track to deploy 40 autonomous test vehicles on the road by the end of this year. As well, the group’s engineers are accumulating data from a further 100 Level 4 test vehicles launched by Mobileye to demonstrate the scale effect of the collaborative approach. The consortium members say they will welcome other motor companies to sign up to the autonomous platform project in an effort to create an industry-wide solution. Meanwhile, Intel has inked a deal with another consortium of automotive and phone companies in Japan to develop computing systems to support future vehicles in the autonomous era when cars will share vast volumes of data to the cloud. Apart from Intel, partners include Toyota, Denso, Ericsson, Nippon Telegraph and Telephone (NTT), and NTT subsidiary DoCoMo. Called Automotive Edge Computing Consortium, the group says it also will invite other players to join the project to help come up with new network architectures and computing infrastructure to handle data volume between vehicles and the cloud that is expected to grow 10,000 times by 2025. In computing terms, this is 10 exabytes of information, which is equivalent to 10 billion gigabytes. +++
+++ German carmakers Daimler and BMW may be in talks to combine their CAR SHARING services Car2Go and DriveNow, the chief executive of car rental company and DriveNow partner Sixt hinted on Thursday. Daimler and BMW have discussed pooling their car-sharing businesses to better compete against ride-hailing companies like Uber and Lyft which have started offering pay-per-use mobility services which are more convenient than car ownership.
Asked whether Sixt was involved in merger talks with Daimler and BMW, Chief Executive Erich Sixt said: “At the last press conference I made clear that we are not involved. Today I can only say ‘no comment’. This is of course a slightly different statement from the last one. Why things are dragging on is not down to us”. In May Sixt had said it was not involved in any merger talks, but added that its 50 percent DriveNow stake had been valued at around 480 million euros. Car2Go declined to comment. No one at DriveNow was immediately available for comment. On being asked whether BMW was in talks to combine its car-sharing business with Daimler’s, a spokeswoman for BMW said, “We are in constant talks with our partners and are of course evaluating the strategic options for our activities and stakes”. Demand for car-sharing services has taken off in a number of major cities including London, Frankfurt, Berlin, Milan and Helsinki, where customers can use free parking, a major cost and convenience factor. More than a third of clients who tried BMW’s DriveNow car-sharing business in London sold their own car and only 20 percent were determined to keep their privately owned vehicles. BMW and Mercedes-Benz parent Daimler are now working on developing autonomous cars, vehicles which could enable them to upend the market for taxi and ride-hailing services. The market for ride-hailing services currently makes up around 33 percent of the global taxi market, and could grow eightfold to $285 billion by 2030, once autonomous robotaxis are in operation, Goldman Sachs said. Sixt said its DriveNow business had grown its customer base from 815,000 people at the end of 2016, to 950,000 at the end of June. As of August 2017, Car2Go had 2.7 million members, who have access to 13,900 vehicles in 8 countries in North America and Western Europe and in China. +++
+++ Hyundai said on Thursday it was placing ELECTRIC vehicles at the center of its product strategy; one that includes plans for a premium long-distance electric car as it seeks to catch up to Tesla and other rivals. Like Toyota, Hyundai had initially championed fuel cell technology as the future of eco-friendly vehicles but has found itself shifting electric as Tesla shot to prominence and battery-powered cars have gained government backing in China. Toyota is now also working on longer distance, fast-charging electric vehicles, local media have reported. The South Korean automaker is planning to launch an electric sedan under its high-end Genesis brand in 2021 with a range of 500 km per charge. It will also introduce an electric version of its Kona with a range of 390 km in the first half of next year. “We’re strengthening our eco-friendly car strategy, centering on electric vehicles”, Executive Vice President Lee Kwang-guk told a news conference, calling the technology mainstream and realistic. The automaker and affiliate Kia, which together rank 5th in global vehicle sales, also said they were adding 3 plug-in vehicles to their plans for eco-friendly cars, bringing the total to 31 models by 2020. Underscoring Hyundai’s electric shift, those plans include 8th battery-powered and 2 fuel-cell vehicles; a contrast to its 2014 announcement for 22 models, of which only 2 were slated to be battery-powered. Hyundai also confirmed a Reuters report that it is developing its first dedicated electric vehicle platform, which will allow the company to produce multiple models with longer driving ranges. Last year, it launched its first mass-market pure electric car Ioniq, but the vehicle’s per-charge driving range is much shorter than offerings from Tesla and General Motors. Hyundai also unveiled a near production version of its new fuel cell SUV with a driving range of more than 800 km per charge under European standards, nearly double the 415 km for its current ix35 fuel cell SUV. The mid-sized SUV will be launched in Korea early next year, followed by U.S. and European markets. A fuel cell electric bus is slated to be unveiled late this year, while a sedan-type fuel cell car is also planned. Even so, analysts noted that gaining traction with fuel cells was going to be a long hard slog. “Hyundai will achieve fuel cell economies of scale by 2035 at the earliest”, Lee Hang-koo, a senior research fellow at Korea Institute for Industrial Economics & Trade. “Before that, Hyundai has no choice but to rely on battery cars”, he said. +++
+++ It has to be tough to be FIAT CHRYSLER . Sergio Marchionne, FCA’s chief executive officer, has spent the last couple years looking for a merger, and so far, every company he’s talked to has rejected him. Then, news broke that a potential deal with a Chinese automaker had fallen through, but others might still be interested. Almost immediately, though, some of the largest potential buyers made it clear they’re not interested. Automotive News reports that Dongfeng joined Geely in announcing it has no intention of buying FCA. When Reuters asked the Chinese automaker whether it was interested in buying all or part of the Italian-controlled automaker, the question was completely dismissed. “We currently have no plans,” said Zhou Mi, a Dongfeng spokesman. If another Chinese automaker actually does purchase FCA, it would likely be the easiest way to enter the U.S. market. Otherwise, it would have to essentially build its brand from scratch, likely struggling to convince buyers that Chinese vehicles are well-built and safe. Newcomers like Hyundai and Kia have only recently gained mainstream acceptance, and they didn’t have to deal with America’s distrust of Chinese manufacturing. With Dongfeng now officially out of the running, though, that narrows the list of potential Chinese buyers to only a few. Great Wall and Guangzhou Automobile Group may still be interested, but at this point, you probably shouldn’t expect a takeover anytime soon. Poor FCA. Always the bridesmaid, but never the bride. +++
+++ Amid declining sales of HYUNDAI and Kia in Korea and abroad, demand for eco-friendly cars made by the country’s top 2 carmakers is increasing, data from the company showed. Hyundai and Kia sold a combined 141,681 eco-friendly cars between January and July this year, which is 10 percent more than the 128,975 units sold for the whole of 2016. Eco-friendly cars offered by the 2 companies consist of 14 models: 6 hybrids, 3 electric vehicles, 4 plug-in hybrids and 1 fuel cell EV. By engine type, sales of hybrid models ranked No. 1, totaling 119,780 units, followed by EVs and plug-in hybrids. Sales of plug-in hybrids jumped 5-fold to 8,485 units in the cited period, showing the biggest rise in sales due to the popularity of the Niro plug-in hybrid SUV, company data showed. “The Ionic hybrid and Niro plug-in hybrid models are garnering huge popularity from motorists worldwide. We plan to diversify the eco-friendly lineup and also expand sales”, Hyundai Motor said. Among the eco-friendly cars sold from January to July this year, overseas sales totaled 105,383 units, up 35.3 percent on-year. China’s new energy vehicles policy, however, is widely expected to pose hurdles to Hyundai and Kia, alongside other auto-related Korean companies operating there. Under a dual-credit scheme, automakers will be required to meet a minimum fuel efficiency rate. They will also have to increase the proportion of zero- and low-emission vehicles to 8 percent of total cars made next year. The proportion will gradually rise to 10 percent in 2019 and 12 percent in 2020. Carmakers that fail to meet the requirement can either buy credits from other companies or pay a fine. “Most carmakers will not be able to meet the given target, so the new policy has to be delayed by a year”, the Korea Automobile Manufacturers Association said. According to the KAMA, it sent a letter requesting that the Chinese government delay the introduction of the dual-credit scheme and soften measures imposed on Korean battery makers last June. The request was jointly made with the American Automotive Policy Council, the European Automobile Manufacturers’ Association and the Japan Automobile Manufacturers Association. The KAMA’s request comes as Hyundai looks set to miss its sales quota for eco-friendly cars for next year by about 4,800 units based on estimates for this year’s sales. The electric version of the Yuedong compact sedan, sold as the Elantra globally and released earlier this month, is currently the only EV model offered in the Chinese market. In an attempt to secure a share of China’s growing EV market, Hyundai will raise the number of eco-friendly models there to 6 by 2020. Hyundai will roll out a plug-in hybrid version of the top-selling Sonata early next year, the company said. +++
+++ Several manufacturers will be giving the IAA Frankfurt motor show a miss this year, including Fiat, Jeep, Nissan and Volvo, as brands shift their investments from the traditional product showcases. As reported by industry journal Automotive News Europe, numerous marques are finding it increasingly difficult to justify the massive budgets required for a major auto show; instead opting to attend more interactive events like the Goodwood Festival of Speed. In addition to Fiat, Jeep, Nissan and Volvo, other brands that have confirmed their exits from the Frankfurt event include Alfa Romeo, DS, Infiniti, Mitsubishi and Peugeot. Overall, these manufacturers account for 20 percent of all car sales in Europe. Another contributing factor is that more and more customers are doing their car research online. Meanwhile, others argue that the traditional, static nature of auto shows are being overshadowed by more vibrant outdoor events that are more entertaining for customers. “The manufacturers are very keen to find different ways of showing their products and we’ve been part of that change”, said Lord March, organiser for Goodwood Festival of Speed. “It’s all about the content: manufacturers are pushing out well over 1 million hours of downloaded video”. French carmaker Renault, for example, spent less than 1.2 million euro, with March estimating that Goodwood set ups for manufacturers cost around three times less than for a major auto show. It’s not the first time, however, that big brands have skipped one of the biggest events on the automotive calendar. Last year, Ford, Rolls-Royce and Volvo did not attend the Paris motor show (which runs alternately with the Frankfurt event) and neither did Bentley and Lamborghini. Just about all of the aforementioned absentees cited that they would be holding more intimate and interactive events for their customers external to the show, likely reducing costs and better targeting their respective demographics. +++
+++ It’s been out of production for some time now, but fortunately a new and improved generation is coming out, and according to the latest rumor it’s coming out globally this time. The legendary LAND ROVER Defender ‘died’ in its current form last year, after continued production of more than three decades, with disdain from off-road enthusiasts all around the world. But what dies in the automotive world won’t stay dead for long, and fortunately the Defender won’t return in zombie form. A new generation is diligently in the works, although JLR is certainly taking its sweet time developing it, perhaps in a bid to separate the new Defender from the old one. And changes are apparently drastic, as per the rumor mill, because Land Rover is set to kill off the body-on-frame architecture for a modern unibody construction, even if that means also lowering the old-school vibe. According to a new report, the Defender will be using the D7U unibody construction currently used for the Range Rover and Range Rover Sport. It’s an aluminum-intensive platform that’s lighter and also with common use it means it’s cheaper. Design boss Gery McGovern revealed in an interview the new Land Rover will have different body styles, not too many retro cues but still remain instantly recognizable and the most capable vehicle in its class. +++
+++ This week, tire manufacturer and major automotive supplier Continental officially introduced the New WHEEL Concept that we first learned about at a preview event last month. Aimed at improving braking in electric vehicles, Continental says it not only optimizes the wheel and braking system for regenerative braking, it also makes the brake system easier to maintain. The New Wheel Concept pairs an aluminum rim with a separate aluminum center star. The aluminum brake disc then attaches to the center star, while the brake caliper clamps to the inside of the disc. Because it’s not on the outside, the brake disc can be much larger than you’d normally be able to pair with a similar conventional wheel. And since most of the parts are aluminum, the New Wheel Concept significantly reduces weight and is naturally immune to corrosion. In fact, Continental claims the aluminum disc doesn’t wear at all, meaning the only real maintenance the New Wheel Concept will need is occasional new pads. Continental says that rust-free brakes are especially important in electric vehicles. The regenerative braking that helps maximize battery range also reduces how often drivers actually use their brakes. When they do need them, it’s often in situations where reduced performance could be an issue, like an emergency stop. “In EVs, it’s crucial that the driver expends as little energy as possible on the friction brake”, Paul Linhoff, head of Brake Pre-Development at Continental, said in a statement. “During a deceleration, the momentum of the vehicle is converted into electricity in the generator to increase the vehicle’s range. That’s why the driver continues to operate the brake pedal, but it certainly doesn’t mean that the wheel brakes are active too. Drivers want to be able to rely on a consistent braking effect, and too much rust on the brake disk in particular can really make this difficult”. Look for the New Wheel Concept to make its official debut next month at the Frankfurt Motor Show. +++