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In the early 1930s, General Motors rose to become the undisputed sales leader in the automotive industry thanks to the implementation of concepts like Alfred P. Sloan’s “ladder of success,” which established a clear pricing structure that was flexible enough to satisfy a wide variety of tastes and buying power, but without creating overlapping products… Continue reading Barra: GM No Longer “Everywhere For Everyone With Everything” – GM Authority

Capital One: Value of Luxury Gas Cars Getting Slammed by Tesla Model 3

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Published on October 6th, 2019 |

by Zachary Shahan

Capital One: Value of Luxury Gas Cars Getting Slammed by Tesla Model 3

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October 6th, 2019 by Zachary Shahan

We talked at length about it years ago at a CleanTechnica conference in Berlin. The night the Tesla Model 3 was first shown to the public, it also crossed our minds. Kyle Field and I were on the test track — only sharing the road and driveway with a few Tesla employees, a black matte Tesla Model 3 prototype, a silver Tesla Model 3 prototype, and a couple of other Teslas. In the 20 minute video I shared of that extremely lucky test track experience (but not the 10 minute abridged video), I didn’t interrupt the fun sounds of the test track fog shooters and the smoothly rolling Teslas very much, but while talking with a Tesla employee near the beginning I laughed a bit out of my awe for the beautiful, super fresh Model 3 and what it would mean for the auto industry. I was picturing elite auto giants in the board room of BMW and Audi sobbing. This was a disruptor, a truly disruptive product that would transform the auto industry, starting with the luxury car market.

A couple of weeks later, at our first Cleantech Revolution Tour conference, in Berlin, we discussed a matter that seemed absolutely imminent: a crash in luxury gas and diesel car resale values. The ramifications of a disruptive new electric luxury car that genuinely embarrasses the Audi A4, Mercedes C-Class, and BMW 3 Series are manifold, but perhaps one of the biggest is that strong depreciation of these previous industry leaders could be disastrous for their parent companies and further accelerate the switch to electric transport.

Notably, a crash in resale values means leasing companies have to increase what they charge customers — otherwise, they’ll lose money on the cars over time. Raising leasing prices means that those vehicles become less competitive, which means fewer people leasing.

An employee of one of the largest auto leasing companies in Europe told me a couple years ago that the CEO of the company had already committed to a quick transition to 100% electric vehicles as a result. It would simply be bad business management to walk into a collapsing market and financial crisis. All he had to do was look the superiority of the Tesla Model 3 and reflect on where the market was headed.

Normal new car buyers may be slower to pick up on the market trends. If they didn’t put down money for a Model 3 reservation or at least jump into the crowd once production ramped up, there’s a good chance they’re simply out of touch. So, it should come as a surprise when they bring their 2018, 2019, and 2020 BMW 320i, Audi A4, or Mercedes C300 “luxury automobiles” to auto dealers or the private used car market and find they lost far more value than the consumers anticipated. Nonetheless, that is what’s going to happen, and that is what’s starting to happen.

No, this is no longer just CleanTechnica saying so. It is not simply Teslarati and Teslamondo saying so. It is Capital One saying so. As the non-analyst tweeting above highlights, Capital One now says that the Tesla Model 3 is “wreaking havoc” on the used luxury car market — that is, the used luxury gas and diesel car market. To Tesla owners, the most confusing part of that some people still consider those cars luxury cars. They have horrible, non-luxury drive quality compared to a Model 3. They have horrible, non-luxury tech compared to a Model 3. The don’t meet the safety level or performance of a Model 3. The interiors or cluttered with old technology, knobs, buttons, and an antiquated interior design. Perhaps we’re Tesla fanboys and fangirls, but there are many reasons for that, and the fan population is growing fast.

Nonetheless, it’s both surprising and exciting that such a mainstream, establishment company like Capital One is publishing the news. It does not mince words. Here’s the headline and summary statement:

The report also notes that 22.2% of Tesla buyers are trading in European luxury vehicles when buying their Teslas.

The searing reflection of market trends, perhaps written by a Tesla owner, sounds more like something you’d find on CleanTechnica than in Capital One’s Learning Center:

“The decisions car-buyers make are increasingly on the side of technology—or more specifically, Tesla’s version of it—than the traditional luxury cars that have long been industry benchmarks. What does that mean? Tesla’s sales successes are wreaking havoc on the pre-owned luxury car market. Once-strong demand for European luxury brands like Mercedes, Audi, and BMW is evaporating as buyers that used to spring for premium luxury sedans now want a Tesla. Any Tesla.”

But it’s absolutely true.

Not only are European luxury vehicle owners trading in those cars for Teslas, but the Tesla Model 3 is setting a whole new frame for what is possible from an entry-level luxury car. It is demolishing previous sales records in those markets and competing in the mainstream car market with the likes of the Toyota Camry and Honda Accord — as it should. Good luck, Audi. Good luck, BMW. Good luck, Mercedes.

The Capital One report is about the US market, but the Model 3 is the #1 best selling automobile (of all classes and vehicle types) in the Netherlands and Norway this year. The base version of that car just started getting delivered to many of those markets, and the higher trim is just starting to make its way to Australia, Japan, South Africa, etc. The disruption is just beginning. The signs are clear, and Capital One has even felt compelled to coin a term around this transition:

“In particular, Tesla’s Model 3 went from zero to over 140,000 units faster than any other luxury vehicle had before, and the demand for new Teslas is, in a very real sense, driving the used car market. With buyer after buyer trading in a still new-ish luxury vehicle for a brand-new Tesla, traditional luxury brands appear to be traded-in more frequently than all American and Korean manufacturers combined.

“Tesla now gets European vehicles as trade-ins 22.2% of the time—more than double the industry average of 10.9%. Because of this uptick, the market is becoming flooded with more affordable cars from Mercedes, Audi, BMW and the like—without a corresponding increase in demand.

“We’re calling this The Tesla Effect. It’s strong enough to cause prices to plummet, because the market has an excess supply of used luxury cars.”

It is a great article and analysis from Capital One, even if it comes a few years after CleanTechnica was blasting this message out from microphones and keyboards around the world. Of course, they needed to wait on some proof and robust figures, not in the same market of forecasting and speculation we are sometimes in. The good news is that we are arriving. A short stop for some Supercharging and I’m sure we’ll be back with more exhilarating analysis and fast-paced note-taking.

In the meantime, we should perhaps recognize that Capital One wasn’t the first to use the term “Tesla Effect.” Almost exactly one year ago, Paul Sankey of Mizuho Securities used the term on CNBC while talking about oil stocks. Without a doubt, “Tesla effect” will mean different things to different industries. We’ll keep you updated as recognition of that effect soars.

About the Author

Zachary Shahan Zach is tryin' to help society help itself one word at a time. He spends most of his time here on CleanTechnica as its director and chief editor. He's also the CEO of Important Media. Zach is recognized globally as an electric vehicle, solar energy, and energy storage expert. He has presented about cleantech at conferences in India, the UAE, Ukraine, Poland, Germany, the Netherlands, the USA, Canada, and Curaçao.

Zach has long-term investments in Tesla [TSLA] — after years of covering solar and EVs, he simply has a lot of faith in this company and feels like it is a good cleantech company to invest in. But he offers no investment advice and does not recommend investing in Tesla or any other company.

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Rivian subscriptions, MPG lessons, Ram EcoDiesel drive: Today’s Car News

We drive one of the highest-mileage light-duty full-size pickups. An analysis of fuel economy across the entire U.S. fleet points to how reality lags regulation. And Rivian is looking at subscriptions. That and more, here at Green Car Reports.

Comments from Rivian CEO RJ Scaringe suggest that the electric truck hopeful is considering a subscription service as a way of supplementing or replacing its direct-sales model. So far other automakers have had only mixed success with such ideas.

An analysis of U.S. vehicle fuel economy—across all vehicles still in use—finds that mileage has stagnated since the George W. Bush administration. There’s a good explanation why, and some serious implications for the future.

We loaded the the 2020 Ram 1500 EcoDiesel up with people and gear—and diesel fuel—and drove 732 miles. Considering its heavy-hauling ability set, it’s one of the most fuel-efficient trucks you can get.

And Tesla has acquired DeepScale, a startup working on vision processing technology—and potentially of use to the automaker as it refines its Autopilot systems and works toward the release of Full Self-Driving Capability.

Electric Volvo XC40 will have a frunk, new driver interface

The new XC40 EV will be more than just an electric powertrain dropped into the company's small crossover, Volvo announced Wednesday, backing up that claim with design sketches and some fresh insights into its approach to electrification.

Volvo's design team is leaning into the stylistic advantages of electric powertrains, which don't have the same packaging needs as internal-combustion engines. Robin Page, Volvo's head of design, says the XC40 EV was designed to incorporate these attributes, rather than obscure them.

“Without the need for a grille we have created an even cleaner and more modern face, while the lack of tailpipes does the same at the rear,” said Page. “Its bold, instantly recognizable design is now even sleeker and more modern in the all-electric version.”

According to Page, this approach contributes to an aesthetic based on “visual clarity and the reduction of element,” or, put more succinctly: minimalism.

There's utility in these changes too: The XC40 EV will have a usable underhood cargo compartment (a “frunk,” for “front trunk”).

Volvo says the XC40 EV will also sport a unique interface designed around the electric car ownership and driving experience, optimized to keep drivers apprised of critical information like battery status.

The XC40 family was designed from the ground up for electrification, which contributes greatly to the EV coming off as more than a hasty attempt to appeal to the green crowd. That didn't stop the company from incorporating a few nods to sustainability, such as carpets made from recycled materials.

Information on Volvo's first EV has been trickling out ahead of its formal debut on Oct. 16. Last week, Volvo shared some of the details of the XC40's driver assistance tech.

Dubbed Advanced Driver Assistance Systems, or ADAS, this new sensor platform is the first implementation of the new scalable semi-autonomous driving platform that Volvo plans to evolve into a full self-driving ecosystem as technology allows.

Washington state is charging hybrid owners $75 to incentivize electric cars

Washington state is shifting some of the financial burden of EV subsidies onto hybrid owners, a local report says, effectively punishing shoppers for purchasing fuel-efficient vehicles.

Starting in October, hybrid drivers will be on the hook for an additional $75 in annual vehicle registration fees to help pay for improving Washington's electric vehicle infrastructure. The ultimate goal is place an EV charging station every 40 to 70 miles along major highways. It's a proliferation strategy that mirrors the approach taken by charging networks in Europe—and along I-5 under the earlier West Coast Electric Highway initiative that installed CHAdeMO DC fast-charging hardware.

It's not unusual for states to impose additional registration fees on battery-electric and sometimes even plug-in hybrid vehicles, but adding a registration surcharge for basic hybrid vehicles is an oddity, especially since hybrid drivers don't have the ability to dodge fuel taxes the way BEV (and some times PHEV) drivers do.

As The Seattle Times puts it, these drivers are subsidizing electric stations that they will never use. We might add that it penalizes those who chose more fuel-efficient gasoline vehicles.

In addition to infrastructure improvements, the fees will also help fund tax breaks for middle-incoming plug-in buyers of new vehicles under $45,000 and used ones under $30,000, says the Times. The bill was one of several green initiatives passed by the Washington state legislature aimed at reducing emissions and one of two written explicitly to help incentivize electrified transportation.

The shifting burden of paying for transportation infrastructure maintenance and upgrades will likely remain contentious at both the state and federal level. The U.S. Chamber of Commerce has publicly advocated for raising the federal gasoline tax, which has been set at 18.5 cents per gallon since 1993. The Chamber suggested a 25-cent increase, which would be 36 percent above the pace of inflation.

Consumer advocates have also raised concerns over the widespread implementation of what could charitably be called disproportionate registration fees for electric vehicles imposed by states to recoup revenue lost in gas taxes. These “road use” fees sometimes amount to double the average driver's annual outlay in gasoline taxes; in at least one proposal, it's triple the average fuel tax bill.

Mitsubishi Mi-Tech PHEV concept teases 4-motor layout, downsized powertrain

Mitsubishi will show a 4-motor PHEV concept at the Tokyo Motor Show later this month, highlighting new electrification tech and unconventional gasoline power in a new downsized SUV package.

The automaker describes the Mi-Tech as “An electric SUV that delivers unparalleled driving pleasure and confidence over all terrain in light and wind.” We suspect that last bit is the equivalent of “rain or shine,” emphasizing the SUV proportions and individually driven motors as go-anywhere, anytime technology.

The individual motors enable torque vectoring on both an axle-by-axle and wheel-by-wheel basis, or, as Mitsubishi calls it, dual motor active yaw control.

Rather than a normal gasoline ICE, the Mi-Tech employs a gas turbine generator. Mitsubishi says this provides for both series hybrid and EV-only operation with the sort of response drivers expect from an electrified powertrain.

The Mi-Tech is also meant to be a driver assist showcase. Rather than relying on the cluster or a large screen for driver information displays, the Mi-Tech actually projects information directly onto the windshield. Picture a head-up display, only on a much larger scale.

It's also equipped with the sort of advanced safety systems expected on next-generation cars, such as emergency steering and brake assist.

It remains to be seen whether Mitsubishi will try to convert the Mi-Tech concept into a production vehicle. The automaker has not had much success with electrified offerings in the States, with only the Outlander PHEV remaining after the departure of the disappointing i-MIEV electric.

Small form factor CUVs and SUVs seem to be the next target for electrification, and their likely popularity in EMEA markets makes them likely candidates for production and overseas distribution. Whether and when that trend will catch on in the United States remains to be seen.

Tesla already topped half a million Smart Summons

Tesla's new Smart Summon remote valet feature has already been used more than half a million times, Tesla CEO Elon Musk says, and while the company is celebrating the widespread adoption of its new tech, the roll-out has not been seamless.

Smart Summon allows owners to remotely summon their car so long as it is in line-of-sight and a relatively short range (Tesla says 200 feet). The idea is that the Tesla will un-park itself and pick its owner up curbside or in some other similarly convenient location. It's pitched as an alternative to walking to a parking space with heavy shopping bags or through a rain or snow storm.

The feature was in early access trials for some time before its wide-scale roll-out with the introduction of Tesla's 10.0 software package. The company said trial customer response was very positive. Based on Musk's tweet from Wednesday, the post-deployment response has been equally enthusiastic.

While Tesla sees this as a point of pride, the first week of Smart Summon has been somewhat rocky, as evidenced by a multitude of videos being circulated on social media. Eager to show off the new feature to friends, family and other followers, owners documented their experiences with Smart Summon to share with the world. The result is a highlight reel that could have been lifted from “America's Funniest Videos.”

The Smart Summon shenanigans have drawn the attention of U.S. safety regulators, and while NHTSA has not launched a formal investigation, the agency says it has been in communication with Tesla.

Tesla is expected to fine-tune Smart Summon's operation as it receives feedback from both customers and the vehicles themselves, and performance should improve as a result.

We'd appreciate your feedback as Tesla owners, or observers, so please do tell us what you think of the feature in your comments below. Is it helpful, more of a gimmick, or risky business?

HERE and HYUNDAI MNSOFT expand collaboration to advance global HD maps and location …

HERE Technologies, a global leader in mapping and location platform services, and HYUNDAI MNSOFT, a Hyundai Motor Group subsidiary … Go to Source

Tech Mahindra and Govt. of Bangladesh sign MoU to foster Digital Startup Ecosystem Development in Bangladesh

Newsroom/Press Releases/Tech Mahindra and Govt. of Bangladesh …

Tech Mahindra and Govt. of Bangladesh sign MoU to foster Digital Startup Ecosystem Development in Bangladesh

Under the aegis of ‘Digital Bangladesh’ charter, Tech Mahindra will mentor start-ups with focus on future technologies like Artificial Intelligence, 5G, Big Data, Cybersecurity, Blockchain, Internet of Things (IoT) and Machine Learning

New Delhi, October 4, 2019: Tech Mahindra, a leading provider of digital transformation, consulting and business reengineering services and solutions, has signed a Memorandum of Understanding (MoU) with Startup Bangladesh to foster the growth of digital startup ecosystem in Bangladesh, by providing guidance and mentoring to the budding entrepreneurs. The MoU was signed in presence of H.E. Sheikh Hasina, Prime Minister of Bangladesh and Shri Piyush Goyal – Minister of Railways and Commerce & Industry, Government of India. As part of the comprehensive growth framework outlined within the MoU, Tech Mahindra will be assisting new-age technology startups in the country, focusing on future technologies like Artificial Intelligence, 5G, Big Data, Cybersecurity, Blockchain, Internet of Things (IoT) and Machine Learning, to leverage digital growth opportunities across its global network.

Startup Bangladesh is a concrete initiative by the Government of Bangladesh to create new opportunities, develop technical skills and help realize the vision of Digital Bangladesh. As part of the MoU, Tech Mahindra will extend collaboration opportunities to the innovators of Startup Bangladesh to engage with its research and development arm Makers Lab, which has global footprint including India, US, Europe and Australia. This collaboration will take up initiatives like Ideathons and Hackathons across educational institutions in Bangladesh. This will help generate awareness about digital technologies and inculcate a culture of innovative thinking. For selected tech startups, Tech Mahindra will provide support in leveraging its global expertise in solving problems in Bangladesh.

State Minister for ICT (Information and Communication Technology) Division, Zunaid Ahmed Palak who exchanged the MoU on behalf of the Government of Bangladesh, said, “With an eye on Globalization and future growth opportunities, the Government of Bangladesh is committed to establish a national entrepreneurship platform in the country that will help strengthen an innovation economy. We are pleased to extend our association with Tech Mahindra to power the vision of becoming a leading global digital economy.”

CP Gurnani, MD & CEO, Tech Mahindra, said, “Bangladesh has demonstrated great commitment towards strengthening the digital growth agenda by making requisite investments in developing skills, new technologies and nurturing entrepreneurship. We are delighted to be partnering with Bangladesh in mentoring the local talent to capitalize on the huge growth potential the region has to offer.”

Sujit Baksi, President, Corporate Affairs & Business Head APAC, Tech Mahindra, said, “Bangladesh is one of the most prominent emerging markets in the Asian region. The thrust by the Government in developing digital technologies, encouraging entrepreneurship and nurturing a digital ecosystem, are all reflective of the country’s commitment to translate the vision of “Digital Bangladesh” into a reality. With our deep industry expertise, we at Tech Mahindra are looking forward to partner with Startup Bangladesh in their endeavor to leverage digital technologies for sustainable development and growth.” He added, “I thank the Bangladesh ICT Ministry and Indian High Commission in Bangladesh for bringing this together.”

As part of TechMNxt charter, Tech Mahindra aims to leverage its global expertise in the use of cutting-edge digital technologies such as Blockchain, 5G – Telecom of the Future, Artificial Intelligence, Cybersecurity, Automation, Robotics, and Internet of Things to develop solutions that cater to the rapid evolving needs of the citizens in Bangladesh.

About Tech Mahindra

Tech Mahindra represents the connected world, offering innovative and customer-centric information technology experiences, enabling Enterprises, Associates and the Society to Rise™. We are a USD 4.9 billion company with 125,700+ professionals across 90 countries, helping 941 global customers including Fortune 500 companies. Our convergent, digital, design experiences, innovation platforms and reusable assets connect across a number of technologies to deliver tangible business value and experiences to our stakeholders. Tech Mahindra is the highest ranked Non-U.S. company in the Forbes Global Digital 100 list (2018) and in the Forbes Fab 50 companies in Asia (2018).

We are part of the USD 21 billion Mahindra Group that employs more than 200,000 people in over 100 countries. The Group operates in the key industries that drive economic growth, enjoying a leadership position in tractors, utility vehicles, after-market, information technology and vacation ownership.

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For more information on Tech Mahindra, please contact:

Tuhina Pandey, Global Corporate Communications
Email: media.relations@Techmahindra.com; Tuhina.Pandey@TechMahindra.com

Japanese firm Sansan names regional CEO to drive Asia expansion

Sansan will focus on growth in other Asian markets, including Indonesia, Thailand, Vietnam, and Singapore. Go to Source