Tag Archives: Automobiles

Volvo Goes Leather-Free on New Vehicles

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Volvo C40 Recharge non-leather seats
Volvo’s focus on sustainability turned to its vehicle interiors with the elimination of the use of leather in all vehicles by 2030.

Volvo, like other automakers, has made sustainability a focus for its future products. The shift includes a move toward electrification and the use of materials that are responsibly sourced and sustainable. 

Its latest effort is the elimination of leather from all its electric vehicles. The first “leather-free” vehicle in the Volvo line-up is the new C40 Recharge.

“We’ve got a new generation of customers coming through, they’re far more interested in the products they buy and having an ethical story behind them,” Robin Page, Volvo’s head of design, told Reuters. The target date for making its line-up completely leather-free is 2030.

Sustainable and cruelty-free

Volvo Cars sustainable material base

Volvo Cars’ new leather-free material consists of textiles made from recycled material such as PET bottles, bio-attributed material from sustainable forests and recycled wine corks.

The decision to eliminate leather isn’t solely about sustainability. It’s also about animal welfare. Volvo is keen to appeal to its customers’ concerns about the treatment of animals by the leather industry and the industry’s environmental impact.

According to a recent Volvo report, The Rise of Conscious Design, two-thirds of customers consider a brand’s environmental policies when making a luxury purchase. These people also want to see better labeling that includes the carbon impact of a company and its products.

This not the first effort by the Swedish automaker to improve its sustainability efforts. In 2018, it resolved to remove all single-use plastics from its offices, cafeterias and at all of its events by then of 2019.

Volvo C40 Recharge leather-free door panel

Volvo’s first non-leather interior comes with the n C40 Recharge.

Numerous leather alternatives

The elimination of leather forced Volvo to search out a wide range of alternatives. These include Nordico — a material made from forestry byproducts along with recycled cork and plastic bottles. In addition to being a sustainable product, Nordico mimics the look and feel of leather creating a warm and welcoming interior.

“For someone who loves leather but is aware of the negative effects of leather on the environment, this is a good, modern way to capture the properties but is the right material for the future,” Page said

Recycled polyester is also on the list of alternative materials adorning the interior of new Volvos. This helps reduce the company’s carbon footprint. Linen and flax produced in between crops will also be used, which has the added benefit of helping replenish the soil for future crops.

“We have a vision of where we need to go in the future, with the first step to ensure we harness sustainable, natural and recycled materials,” said Page. “The next challenge is to change what we do with these materials, whether that’s making car parts that last forever, re-enter the circular economy or go back into the earth.”

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Dealers Running Dry, Even as GM Set to Halt Production for Two Weeks

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The shortage of microchips continues to drag on, forcing General Motors to idle virtually all of its North American production operations for as long as two weeks — though the automaker could yet extend this latest shutdown.

Wentzville Assembly
General Motors is basically shutting down its North American manufacturing operations due to the chip shortage.

GM is just one on a long list that includes virtually every automaker hit by the shortage — and its impact is being felt just about everywhere, from Stuttgart to Detroit to Beijing.

Industry planners hoped to put the shortages behind them by now. Barely a month ago, GM had signaled it had come up with new sources for some of the chips it needed. But that clearly didn’t meet its requirements.

No light at the end of this tunnel

The automaker will either close or extend closures at plants, such as the one in Wentzville, Missouri producing its Chevrolet Colorado and GMC Canyon pickups, another in Canada building the Chevy Equinox SUV, and the Ramos Arizpe facility in Mexico that assembles products like the Chevy Blazer SUV. All four of its North American brands will feel the heat.

Like some of its competitors, the automaker had been partially assembling vehicles, where possible, and then storing them until it could come up with the missing chips and electronic components. So, in some instances, GM will try to take advantage of the upcoming closures. It has secured enough chips, in some cases, to let it “repair and ship unfinished vehicles,” it said in a statement.

Wentzville Assembly

GM’s Wentzville plant, which produces its midsize pickups, is on the list to go down.

It was not revealed just how much production GM will lose due to the coming closures but some of those plants routinely produce more than 60 vehicles an hour on two or three shifts, many working overtime — when possible — to help rebuild inventories already drawn down as a result of last year’s pandemic closures.

Empty lots

Company officials indicated GM dealers now have barely half their normal stock of cars, trucks and crossovers which, this time of year, would run between 60- and 70-days’ supply.

Among the dealers TheDetroitBureau.com talked to, some indicated they have less than 10 vehicles in stock and are not sure when they will get more, especially when it comes to popular product lines like the Chevrolet Silverado and GMC Sierra pickups.

And they’re not alone. Toyota has barely 10 days worth of some of its most popular vehicles, like the RAV4 SUV. The automaker last month warned it would cut global production by 40% this month, so shortages could, if possible, get even worse. In recent days, Stellantis, Nissan and Ford, among others, have announced further cuts.

GM Ramos Arizpe plant

The company is idling its Ramos Arizpe facility in Mexico where it builds the Chevy Blazer.

Consumers paying the price

In turn, customers have been forced to either wait, extend their search or, in many cases, pay at or above sticker price. Some social media reports have highlighted dealer surcharges ranging anywhere from $5,000 to as much as $40,000 above MSRP.

That helped drive average transaction prices to a record of more than $41,000 in July, according to Cox Automotive, J.D. Power and other analysts. The figure is widely expected to have run even higher in August.

Sales for the month came in at an estimated, annualized rate of about 13.1 million, down from as high as 18.5 million earlier in the year.

The Labor Day weekend is normally one of the busier holidays at U.S. dealer showrooms but there is little hope, according to industry insiders, that it will generate anywhere near the normal levels seen in past years.

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Hybrid Power Takes New Mercedes-AMG GT 63 S E to New Level of Performance

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Mercedes has embraced electrification in all its forms, and that means some good things are coming from its performance brand, AMG, starting with the 2023 Mercedes-AMG GT 63 S E Performance model which, the automaker suggests, “draw(s) upon technologies from Formula 1.”

Mercedes-AMG GT 63 S E Performance - beauty shot
Mercedes continues its expansion into electrification with the new AMG GT 63 S E Performance model.

By pairing a twin-turbocharged 4.0-liter V-8 with an electric motor mounted on the rear axle, AMG’s first performance hybrid punches out some big numbers: 831 horsepower and more than 1,033 pound-feet of torque.

“With the new Mercedes-AMG GT 63 S E Performance, we are transporting our brand DNA into an electrified future,” said AMG Board Chairman Philipp Schiemer. “In doing so, we are following our own technical path, which is what has always made AMG so special and desirable.”

If the basic powertrain specs aren’t impressive enough, consider the fact that the hybrid version of the AMG GT will hit 60 mph in a mere 2.9 seconds, and 125 mph in less than 10. It tops out at 197 mph.

Taking some cues from Formula 1

Mercedes-AMG GT 63 S E Performance - rear 3-4

With a 0-60 mph time of 2.9 seconds and the ability to hit 125 mph in just 10 seconds, this is likely the view most will see.

The GT 63 S E is actually a plug-in hybrid, though there’s not much of a battery to work with, a modest 6.1 kilowatt-hour lithium-ion pack that, if it matters to you, will yield about seven miles in all-electric mode. The reality is that this hybrid is designed to deliver on the performance end, and if it happens to yield a bit better mileage and lets you run to the corner store without sipping any fuel at all, so be it.

“The layout with the combustion engine at the front and Electric Drive Unit on the rear axle offers numerous advantages,” said Jochen Hermann, AMG’s technical chief. “The optimized weight distribution, best possible utilization of torque and the very fast power delivery promise driving dynamics at the highest level. Added to this is the high-performance battery developed in-house, which has twice the power density of conventional drive batteries and, like many other components, is inspired by technology from Formula 1.”

In fact, the GT 63 S E Performance should satisfy those who expect hybrids to add environmental benefits, the automaker noting in a news release that, “the development team was also able to improve the efficiency of the entire vehicle in parallel — and achieve lower emissions as well as lower consumption.”

Mercedes-AMG GT 63 S E Performance - powertrain

The newest hybrid from Mercedes puts out 831 horsepower and more than 1,030 pound-feet of torque.

The program, was developed in-house at AMG’s Affalterbach operations. And it ushers in a future that will be focused, increasingly, on electrified drivetrain technologies, both hybrid and pure battery-electric offerings.

AMG goes electric

In July, when Mercedes-Benz CEO Ola Källenius laid out the parent company’s broad electrification strategy, officials revealed that the auto company is acquiring British-based startup YASA. The new acquisition developed a completely new high-performance motor design, called an axial flux, that will be used in future electric AMG models.

The new GT 63 S hybrid doesn’t use the YASA motor but the electrified portion of the sports car’s drivetrain alone still manages to deliver 201 hp and 236 lb-ft of torque through a 2-speed gearbox. At peak power, it spins up to 13,500 rpm. And while it is mounted on the rear axle, a modified version of the AMG Performance 4Matic system lets that torque be shifted to the front wheels, if needed.

Mercedes-AMG GT 63 S E Performance - interior

Inspired by Formula 1, it’s still not a Mercedes without an impressive interior.

The electric motor isn’t the only trick Mercedes is bringing to production with the 2023 Mercedes-AMG GT 63 S E Performance model. The two twin-scroll turbochargers also have been electrified. While they still rely on exhaust gases to reach maximum boost, the system effectively eliminates dreaded turbolag by using electric motors to start them spinning immediately.

As with more conventional versions of the GT, AMG buyers will be able to adjust a variety of vehicle setting using the Dynamic Select system. That includes an EV mode. They’ll also be able to adjust the regenerative settings of the ceramic high-performance composite brake system. Level 3 should allow One-Pedal driving in many situations, drivers able to adapt to the flow of traffic simply by modulating the throttle. Race mode, however, dials that back slightly.

Flexibility for the future

The basic design of the GT 63’s electrified drivetrain is modular in nature. That means it can be sized up or down, depending upon application. On some models, that could mean smaller motors and a larger battery pack to put more emphasis on all-electric range.

The specs Mercedes-AMG is releasing come days ahead of the GT 63 hybrid’s formal debut at next week’s Munich Motor Show. And they’re actually for the European version of the new model. The performance brand says U.S. specifications will come closer to launch — which is expected sometime in 2022.

California Judge Rules Against Uber, Lyft on Gig Worker Law

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A California judge set aside a statewide proposition exempting drivers working for companies such as Uber, Lyft and DoorDash from the state’s “gig workers” law, which requires employers to provide all employees with benefits, including health care and vacations. 

Lyft driver masked
A California judge ruled against the new Prop 22 law approved by voters last fall.

The ruling, in a case filed earlier this year by the Service Employees International Union, is a setback for Uber and Lyft, which have built their business model around part-time drivers and spent millions on the campaign that led to the passage of Proposition 22 in last November’s election. 

Uber said it plans to appeal the judge’s decision and is confident it will ultimately prevail. However, judges in California have succeeded in killing off other proposals approved by voters in the past. For example, a judge overturned a ban on gay marriage approved the California voters. 

Ruling hurts bid in other states 

Dara Khosrowshahi at Elevate event

Uber’s chief, Dara Khosrowshahi, and other execs said the company’s would go bankrupt if they had to make drivers company employees.

The ruling also could slow Uber and Lyft’s efforts to have similar laws, allowing them freedom in determining how to compensate drivers, in other states. A law similar to California’s is now pending in Massachusetts.  

“A prohibition on legislation authorizing collective bargaining by app-based drivers does not promote the right to work as an independent contractor, nor does it protect work flexibility, nor does it provide minimum workplace safety and pay standards for those workers,” Alameda Superior Court Judge Frank Roesch wrote in his ruling. 

“It appears only to protect the economic interest of the network companies in having a divided, ununionized workforce, which is not a stated goal of the legislation.” 

The coalition representing Uber and other companies using gig labor said in a statement Friday that it planned to appeal. 

Lyft driver

Lyft teamed up with Uber, DoorDash another to fight for Proposition 22 in California.

“We will file an immediate appeal and are confident the Appellate Court will uphold Prop 22,” said Geoff Vetter, spokesperson for the Protect App-Based Drivers & Services Coalition, in a statement. “Importantly, this Superior Court ruling is not binding and will be immediately stayed upon our appeal. All of the provisions of Prop 22 will remain in effect until the appeal process is complete.” 

Unions hail ruling 

From the other side of the fight, Bob Schoonover, president of SEIU California State Council, said in a statement, “Today’s ruling by Judge Roesch striking down Proposition 22 couldn’t be clearer: The gig industry-funded ballot initiative was unconstitutional and is therefore unenforceable. Companies like Uber and Lyft spent $225 million in an effort to take away rights from workers in a way that violates California’s Constitution. 

“They tried to boost their profits by undermining democracy and the state constitution. For two years, drivers have been saying that democracy cannot be bought. And today’s decision shows they were right,” he added.

California’s courts have sided with the drivers in the rulings leading up to the passage of Prop 22 last fall by the state’s voters. The parties on both sides have been at odds since California passed a law known as Assembly Bill 5 in September 2019. In fact, the companies wanting to keep workers as contractors, thus ineligible for benefits, lost a court case less than two weeks before the current law was passed by voters.

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GM’s Troubles with Bolt EV Grow as it Recalls 73K More Vehicles

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General Motors’ problems with the Chevrolet Bolt EV keep expanding, the company announcing late Friday it’s including an additional 73,000 vehicles in the recall. 

2019 Chevrolet Bolt EV
GM added another 73,000 Chevy Bolt EVs to the recall list with the older models.

The new models include the 2019 cars not included in the first action as well as all of the 2020-2022 EVs. A defect in the battery can cause the vehicles to catch fire. The company already recalled more than 69,000 2017-2019 models for the problem — at a cost of about $800 million to replace the batteries.

Now, the additional 70K-plus electric vehicles basically account for all of the Bolts produced. The company said add $1 billion to the earlier total, bringing the overall cost to fix the problem to just about $1.8 billion.

“In rare circumstances, the batteries supplied to GM for these vehicles may have two manufacturing defects — a torn anode tab and folded separator — present in the same battery cell, which increases the risk of fire,” the company said in a statement released Friday. 

“Out of an abundance of caution, GM will replace defective battery modules in Chevrolet Bolt EVs and EUVs with new modules, with an expected additional cost of approximately $1 billion.”

2022 Chevrolet Bolt EV

The 2022 Chevrolet Bolt is now part of the ongoing recall of the company’s electric vehicles.

Trying to resolve the problem

The company attempted to resolve the issue with the initial recall, believing a software tweak could settle it. However, two more vehicles caught fire — one after getting the update — forcing GM to issue a recall again to replace the batteries in the initial pool of affected vehicles.

As owners waited, it asked them to park their vehicles away from outside of their garages or other buildings after charging. It also recommended the vehicles not be charged past 90% capacity — all to no avail.

Apparently, after further investigation, the company discovered the issue affected newer models outside of the original pool of 2017-2019 model-year vehicles. 

GM confirmed to CNBC there has been one fire in the new population of recalled vehicles. Including the previous confirmed fires from in the first round of recalled vehicles, a total of 10 of the EVs have caught fire.

charred Chevy Bolt in garage

One of the two recent Bolt fires included a vehicle that completed the software update.

The company continues to ask affected Bolt EV owners to set their vehicles to a 90% state of charge limitation using Hilltop Reserve mode (for 2017-2018 model years) or Target Charge Level (for 2019 model year) mode.

Earlier plan fails to solve the problem

GM said earlier the high-voltage batteries being recalled were produced in South Korean battery manufacturer LG Chem’s facility in Ochang, South Korea. 

The company disclosed July 23, along with LG Chem, it identified the presence of two manufacturing defects in the same battery cell as the root cause of battery fires in certain Bolt EVs. GM described the defects as “rare” by GM. 

LG Energy Solutions, a wholly owned LG Chem battery subsidiary, said in a statement to Reuters it “will actively cooperate to ensure that the recall measures are carried out smoothly.” 

Last month, GM disclosed it was taking an $800 million charge to cover the cost of the recall of the battery electric vehicles.

Just the Z!

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No numbers. Just Z. 

The 2023 Nissan Z is powered by a 3.0-liter twin-turbo V-6 putting out 400 horsepower — and it’s available next spring.

Nissan revealed the long-awaited Z car and it’s basically the Z Proto, the concept shown last year. Back then company officials they expected it the final product would be very close to the concept and they didn’t lie. It’s about 95% of the Proto.

Let’s get right to it. The new model, which is officially a 2023 model year entry, is powered by a 3.0-liter twin-turbo V-6 putting out 400 hp and available with a standard 6-speed manual or 9-speed auto with paddles. 

“It’s smoot and powerful and pulls hard in any gear,” said Ashwani Gupta, Nissan’s COO, and a former Z owner himself. “It’s fun to drive either way.”

Past meets present

Z Proto with Uchida

Nissan CEO Makoto Uchida introduced the new Z Proto, saying the new Z car would look basically like the prototype — and he was right.

The 2023 model, which will hit dealers next spring, was originally introduced in October 1969 as the 1970 Datsun 240Z, in a warehouse just five miles from where the virtual debut of the newest iteration took place.

Borrowing the long hood from the original 240Z and the taillights from the 300ZX, Nissan’s design team took great pains to try to remain true to the car’s essence while putting a modern twist on the exterior as well as the interior. 

The instrument gauge cluster is a 12.3-inch programmable screen, but a quick scan to the driver’s right shows three round gauges, just like those found on the original. It also comes with standard 8-inch touchscreen — a larger 9-inch version is available — that’s Apple CarPlay and Android Auto ready and tied an eight-speaker Bose sound system.

No pricing was released for the new model, but it will come in Sport and Performance grade levels as well as a limited-edition “Proto Spec” of which just 240 will be produced.

Farewell Acura NSX: But Acura Sends Off Hybrid Supercar in Style

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It’s a classic good news/bad news scenario: Acura set to introduce a special edition of its NSX at the Pebble Beach Concours d’Elegance later this month. Unfortunately, the limited-edition NSX Type-S will mark the end of the run for the hybrid supercar.

2022 Acura NSX Type S smoking tire teaser
Acura’s pulled the plug on the NSX, but it’s going to go out in style with the limited edition Type S.

These are tough times for sedans, coupes and sports cars, with millions of American motorists – and more and more abroad – switching to SUVs and CUVs. Just yesterday, Toyota announced it will pull the plug on its flagship Avalon sedan. Now, Acura is giving the NSX a final hurrah. But if it has to go, the sports car is going to do so in a blaze of glory.

The Type-S will deliver “an even higher performance envelope and a more emotional driving experience,” Acura said in a statement. Specs have yet to be released but that would strongly suggest this limited-edition will deliver more than the 573 horsepower and 476 pound-feet of torque the “base” Acura NSX currently makes.

Limited run – most bound for the U.S.

Acura is billing the Type-S as a “collectible,” in line with the special NSX Zanardi it produced back in 1999, shortly before it killed off the original version of the sports car.

A total of 350 Type-S models will be produced, 300 of them earmarked for the U.S., Acura announced. If you’re interested, the company said, “The limited run supercar will be available for customer orders beginning August 12 at Acura.com/NSX.”

Sales of the current-generation NSX never quite met initial expectations, and have faded into insignificance since its return in mid-2016. American motorists purchased just 138 in 2020, with dealers delivering a mere 16 this past June. But it was, nonetheless, a significant and influential product.

2022 Acura NSX Type S side teaser

There will be just 350 NSX Type S models made, 300 are coming to the U.S.

The original 1990 model was the first Japanese supercar and achieved a number of breakthroughs, starting with its lightweight aluminum body. Production was halted in 2005 and Acura spent a decade trying to figure out how to bring NSX back to market. It tinkered with a variety of different powertrain alternatives before settling in on a hybrid system pairing a twin-turbocharged V-6 with three electric motors, one in back, the others driving the front-wheel.

Hybrid power

The internal combustion system provided a peak 500 horsepower, the front motors 34 hp each. The back motor added another 47 ponies. (And don’t try to do the math; the V-6 and the electric motors hit peak hp and torque at different RPMs.) That was enough to launch the NSX from 0-60 in 2.7 seconds, with a top speed of 191 mph.

As tough as it was on the street, the NSX was also a force to be reckoned with on the track, Acura’s statement noting that, “The second-generation NSX has also dominated on the racetrack, with the NSX GT3 Evo winning the 2019 and 2020 IMSA WeatherTech SportsCar Championship titles in the GTD class, and the 2019 Super GT driver’s and manufacturer’s championships in the GT300 class in Japan. NSX also currently holds the Hybrid record in the Time Attack 1 division of the Broadmoor Pikes Peak International Hill Climb, set in 2020 by James Robinson, and the production vehicle record at the Grand Prix of Long Beach street circuit, set in 2019 by Peter Cunningham.”

2022 Acura NSX Type S starting line teaser

The limited edition Type S puts out 573 horsepower and 476 pound-feet of torque.

While the NSX may be going away, its influence will continue to be felt. A less aggressive version of its Super-Handling All-Wheel-Drive, or SH-AWD, system appears on several products, including the MDX. And both Acura and its mainstream sibling, Honda, have changed their approach to using hybrid power. Where the emphasis was solely on fuel economy in the days of the original Honda Insight, more of their products now use battery assistance to enhance performance — the Honda CR-V Hybrid the most powerful version of that compact CUV.

An all-electric future

Is there a future for the NSX? Could it yet again rise from the dead? The automaker leaves us speculating it isn’t ready to walk away from the legendary badge.

“Acura is a performance brand, a company of enthusiasts, and we will continue moving forward, actively investigating what the next generation of sports cars should be in an electrified era.” said Jon Ikeda, vice president and Acura brand officer.

Considering what we’re seeing from brands as diverse as Dodge, Tesla and Ferrari, an all-electric Acura NSX could, indeed, be something to watch out for. 

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EU Proposes Ban of Gas- and Diesel-Powered Vehicle Sales by 2035

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The European Union put the final nail of the coffin for gas- and diesel-powered vehicle sales, proposing a complete ban starting in 2035.

BMW CEO Oliver Zipse said the Europe’s infrastructure isn’t equipped to handle tougher proposed emissions targets by the EU.

The move came as part of a much larger package of plans — dubbed “Fit for 55” — to reduce carbon emissions from vehicles on the continent by 55% between now and 2030. The current target is 37.5% by the end of the decade. The same push includes a 100% reduction by 2035. To be clear, these are proposals, not actual mandates — yet.

“This is the sort of ambition we’ve been waiting to see from the EU, where it’s been lacking in recent years,” Helen Clarkson, chief executive of the Climate Group, a non-profit group that works with business and government to tackle climate change, told Reuters.

“The science tells us we need to halve emissions by 2030, so for road transport it’s simple – get rid of the internal combustion engine.”

Unsurprisingly, ACEA, the European auto industry trade group, criticized the tougher proposals, saying the complete elimination of internal combustion-powered vehicles by 2035 was overkill. It noted that ACEA members support the push for carbon neutrality by 2050, but the proposed new standards essentially wipe out billions invested by automakers with that target in mind.

EU can want, but continent is not ready

Volkswagen AG Chairman Herbert Diess

Volkswagen AG Chairman Herbert Diess has helped lead the charge in the conversion to electric vehicles.

“Ambitious climate targets need a binding commitment from all parties involved. The European Commission today made very clear that the Green Deal can only be successful with mandatory targets for the ramp-up of charging and refueling infrastructure in all member states,” said Oliver Zipse, BMW CEO and ACEA president, in a statement.

The trade group noted the infrastructure is not — and will not — be in place to meet the new targets. Also, the demand for EVs doesn’t warrant a change in plans, Zipse noted.

“The current proposal for an even bigger cut in CO2 emissions by 2030 requires a massive further increase in market demand for electric vehicles in a short timeframe,” stated Zipse. “Without significantly increased efforts by all stakeholders – including member states and all involved sectors – the proposed target is simply not viable.”

Automakers have been announcing product plans focused on the shift toward electrified vehicles for several years. Much of those efforts center on the more lax targets, although some countries like Great Britain, Norway, Japan and Canada, have already implemented or are considering sales bans by 2035.

As a result, several automakers are already targeting earlier dates as the bogey for making a complete shift away. Volvo officials expect to be all electric by 2030, as does Bugatti. General Motors targets 2035 for its shift, but not all have done so, which is cause for alarm in some circles.

British Prime Minister Boris Johnson led the charge for a 2030 sales ban of gas- and diesel-powered cars.

Forcing change

The pushback against the new targets was not a surprise for supporters, who accounted for that in the massive package of proposals. The group recommended legislation forcing EU countries to install public charging points on “major roads” in 37.3-mile intervals by 2025.

This, according to the Reuters report, would result in 3.5 million stations for light vehicles by 2030 with growth to 16.3 million by the time the mandate for carbon neutrality hits in 2050.

To ensure the shift happens by 2035, the proposals require an investment by the 27 countries in the bloc between $95 billion and $142 billion by 2040.

IHS Markit said in a report on Tuesday that if the EU raised its reduction targets to 50% by 2030, it would bring new fossil-fuel car sales across the bloc down basically zero, although overall registrations — which includes used vehicles — would still see ICE vehicles accounting for 48% of vehicles on the road.

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What Chip Shortage? Tesla Posts Strong Q2 Sales Results

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2021 Tesla Model Y blue
Tesla raised the price on its Model Y Long Range by $10,000 due, in part, to supplier issues.

As many automakers struggle to find semiconductor chips for their high tech vehicles, Tesla Inc. clearly has the issue taken care of as its second-quarter sales pass the 200,000-unit mark.

“In the second quarter, we produced and delivered over 200,000 vehicles,” the company said in a statement. “Our teams have done an outstanding job navigating through global supply chain and logistics challenges.”

For many car companies, the second quarter’s been difficult as it relates to keeping a steady supply of the chips. Tesla did have a short shutdown in February due to the problem, but since then has been churning out vehicles steadily, especially during the most recent quarter.

Tesla delivered more than 200,000 Model 3 and Model Ys during the quarter.

The company produced 204,081 Model 3 or Model Ys last quarter, a massive increased when compared with the year-ago period’s 75,946 vehicles. While pushing out its most popular vehicles — Model Y being the company’s biggest seller — it put the freshened 2021 Model S and Model X on the road during the quarter. It moved

Chip problems

The company did have a production hiccup in the first quarter of last year due to chip problems, but has since not had a problem. CEO Elon Musk said the semiconductor problem was causing some companies to behave impulsively.

“Our biggest challenge is supply chain, especially microcontroller chips. Never seen anything like it,” he tweeted June 2. “Fear of running out is causing every company to overorder — like the toilet paper shortage, but at epic scale. That said, it’s obv not a long-term issue.”

However, it doesn’t mean Tesla hasn’t been part of the sales rush. The Financial Times reported Tesla held discussions with chip makers to pay in advance, including offering deposits on high-volume orders. The company reportedly explored the idea of buying a plant to build its own chips.

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A Third of New Vehicle Buyers Want a Self-Driving Car in Next 10 Years

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The ongoing will-they-or-won’t-they when it comes to consumer acceptance of autonomous vehicles keeps inching its way toward “they will” as consumers begin to come to terms with self-driving technology. 

Tesla’s Autopilot offers hands-free capabilities, but it’s at the center of an investigation by federal safety regulators after several crashes.

A new study by CarGurus.com shows 34% of new car shoppers expect to own an autonomous vehicle within the next decade. During the past two years, it’s become clear that consumers are more knowledgeable about autonomous vehicles, researchers found.

However, this gained insight doesn’t mean that more people are excited about the technology, just that they are becoming more at ease with the idea. When asked how comfortable they were with the advancement of self-driving technology, 37% were neutral and 33% expressed excitement. In 2019, 31% of consumers were neutral and 32% excited. 

According to the study, it appears respondents still want to maintain control of their vehicle with 53% preferring to remain the driver of a self-driving car. They are least comfortable (20%) sharing the roads with self-driving delivery trucks or fleets — one of the primary benefits of the technology, according to those developing the technology.

J.B. Hunt rig
J.B. Hunt is teaming with Waymo to develop self-driving vehicle technology. It’s this scenario that most concerned people in a recent study.

Neutrality equals buyers?

“This year’s Self-Driving Vehicle Sentiment Survey from CarGurus makes clear that autonomous vehicles’ tech offerings need to align with how people want to use them,” said Madison Gross, director of Customer Insights at CarGurus. 

“While there is hesitancy around self-driving technology, how consumers envision themselves using the technology would require full autonomy — which is still a goal that the industry is striving toward. Until then, shoppers are looking for driving technology that helps them stay in control, rather than technology that takes total control.”

The findings reveal the conflict potential buyers feel as 45% said they are excited by the leap forward in the technology, but 51% still harbored concerns about safety. Tesla — despite the continuing controversy and investigation by federal safety regulators surrounding Autopilot semi-autonomous technology — is the company respondents have the most faith in developing self-driving cars at 34 percent.

Ongoing testing by companies like Cruise appears to be increasing the comfort level of consumers with autonomous technology.

Tesla was followed by Apple (8%) and Toyota (7%). 

The ultimate trust fall

However, nearly two in 10 respondents do not trust any brand to do so, and with 56% wanting brands to bear the responsibility in the case of any accidents, there is a long way to go to earn consumers’ trust. Tesla is also the top AV brand that shoppers would consider with 54%, followed by Toyota (35%) and BMW (32%).

In spite of the trust issues, consumers are still optimistic about autonomous vehicles. More than half (56%) of respondents would use AVs to drive them home safely when unable to do so themselves and 42% would want their self-driving car to be able to park itself. 

However, consumers are more focused on helpful technology — where they still have some control. They expressed the most interest in advanced driver-assistance systems like back-up cameras (39%) and blind-spot monitoring (56%), features that many cars already have (42% and 17% of drivers respectively report already owning them).