BMW Group sales continue positive trend in August

Munich. BMW Group sales continued their positive trend in August: Worldwide deliveries were up 4.4% on the same month last year, with a total of 181,126 premium BMW, MINI and Rolls-Royce vehicles sold. This brings the company’s total sales for the year to date to 1,617,512 units (+1.3%), in a volatile global market environment. “This… Continue reading BMW Group sales continue positive trend in August

Tesla Insurance Launches, Claims To Save Owners Up To 30% On Premiums

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Published on August 28th, 2019 |

by Kyle Field

Tesla Insurance Launches, Claims To Save Owners Up To 30% On Premiums

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August 28th, 2019 by Kyle Field

Tesla just officially launched its highly anticipated Tesla Insurance offering for Tesla owners in California. It promises to save owners up to 30% on their premiums compared to traditional automotive insurance companies. Tesla Insurance also sets the company up to provide the end-to-end vehicle purchase, service, fueling, and insurance services in a buildup to the launch of the Tesla Network. Talk about integrated.

Tesla Insurance is initially offering “comprehensive coverage and claims management to support our customers in California,” with other states being added after the company works the initial bugs out of the system via customers in its home state.

Saving cash is great and the opportunity to save even more money by getting in the insurance bed with the automotive manufacturer comes with its own series of potential risks and benefits. First off, Tesla presumably knows its vehicles better than anyone else, so can initiate claims, start shipping parts, and schedule repairs faster than anyone else.

Getting insurance through Tesla also puts the company on the hook for getting owners back into their vehicles as quickly as possible after an accident. In my mind, this is the real incentive for signing up for Tesla Insurance, as stories of long delays to get Tesla vehicles repaired after an accident are a dime a dozen on any internet forum.

Image courtesy: Tesla

The prospect of having an integrated pool of Tesla Insurance loaner vehicles for customers getting vehicles repaired is also attractive, as Tesla wouldn’t have to pay an outside rental company to provide a combustion vehicle. It could instead keep owners in a Tesla vehicle in the zero-emission Tesla ecosystem. It could even use the loaner process as a tool to encourage owners to trade up and get into a new, higher-performance Tesla while their vehicle is being repaired.

The lower prices come from Tesla’s direct knowledge of the passive safety of its vehicles as well as the active safety technology present in every Tesla rolling off the line for the past couple of years. Tesla has more nuanced knowledge about the safety equipment in each specific vehicle as well as the statistical safety of similar vehicles on the road, giving it a much more accurate ability to price in or out the risk of an accident. The lower premiums reflect what Tesla has been telling us all along about the safety of its vehicles. When a vehicle is 4–6 times less likely to get into an accident than the average vehicle driving around in the US today, that means lower insurance costs.

Tesla Insurance is currently only available to owners of a Tesla Model S, X, 3, or Roadster in California, with the prospect of further improving the total cost of ownership of a Tesla compared to other vehicles. In other words, this makes the all-in cost of electric vehicles that much more accessible to people in California, and around the world eventually.

Image courtesy: Tesla

The new offering can be added to an owner’s Tesla account in less than a minute. After logging into the Tesla Account, all that’s needed is a confirmation of the owner’s address and driver’s license information. Then a preliminary quote pops out. Coverages, deductibles, and the like can be adjusted as needed and the price adjusts accordingly.

For customers purchasing a new Tesla, Insurance can be added as soon as a VIN is assigned to the order, making the pickup of a new vehicle that much easier.

Image courtesy: Tesla

Importantly, Tesla specifically notes that it will not use or record vehicle data, including GPS and vehicle camera footage, when pricing insurance. (Doing so, it seems, would be illegal.)

For more information about Tesla Insurance, head over to the official website, the blog post introducing it, or my personal favorite, the Frequently Asked Questions page.

Also, this article from our in-house insurance expert is mandatory (recommended) reading: Tesla Insurance: Information Arbitrage To Save You Money.

Source: Tesla

About the Author

Kyle Field I'm a tech geek passionately in search of actionable ways to reduce the negative impact my life has on the planet, save money and reduce stress. Live intentionally, make conscious decisions, love more, act responsibly, play. The more you know, the less you need. TSLA investor.

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Kia Motors Invests in IONITY to Democratize High-Power EV Charging Network

Kia Motors Company alongside Hyundai Motor Company today announced its investment into IONITY, a joint venture established by global automakers. Under the agreement Kia and Hyundai, affiliated automotive companies for Hyundai Motor Group (the Group), will play a key role in further enhancing the availability of EV charging stations with additional convenience benefits for its… Continue reading Kia Motors Invests in IONITY to Democratize High-Power EV Charging Network

Tesla Adds Online Parts Sales, Hinting At Direct Customer Sales

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Published on September 7th, 2019 |

by Kyle Field

Tesla Adds Online Parts Sales, Hinting At Direct Customer Sales

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September 7th, 2019 by Kyle Field

Tesla added a new Parts page to its online shop today in a move that hints at more direct sales of parts to customers around the world. The new shop is somewhat stripped down as it stands today, with a few options for floor mats and new key cards for the Tesla Model 3, but it bodes well for the future.

Screen capture of: Tesla.com

Good For Customers
Parts have been hard to come by for DIY installers, with most turning to eBay for parts stripped from scrap yards, totaled vehicles, or leftovers from rim replacements and the like. It’s likely that sales on eBay will continue as owners look for more cost-effective ways to repair or upgrade their vehicles, but the addition of direct sales from Tesla would provide much needed relief for customers looking for harder-to-find parts.

Many parts just aren’t reused as easily as others, driving prices artificially higher on the resale market. Opening up the option to buy parts directly from Tesla will help DIY customers or shops get their vehicles repaired with fewer headaches. That’s better for Tesla’s customers, wherever they may live and drive.

Good For Tesla
Making parts available directly to customers over the internet replicates the parts supply model that the automotive industry has used for years, but eliminates the middle man. That gives customers and body shops the best prices from Tesla, without the need for any markups. To Tesla, that also means it gets all of the profits, at retail pricing, along with full control over those prices.

Tesla Mobile Service repairing the electromechanical door handle switch on our Tesla Model 3. Image credit: Kyle Field | CleanTechnica

In other words, selling parts directly gives customers the best prices for the highest quality parts, while putting profits back into Tesla’s pockets. That’s good for Tesla and keeps the company healthy while giving value back to consumers at the same time. It won’t eliminate the need or the opportunity for aftermarket parts suppliers to move into the space, but it will make the market smaller.

A Maturing Market
The addition of parts sales to customers to its repertoire is a step forward for Tesla and is just one more indicator that EVs are moving out of a niche market into the mainstream. My wife attempted to get the charging door on her Mercedes B-Class Electric repaired several times in the last 2 years, but only recently was able to have the service actually performed after the local dealership stepped up its game. It was still über expensive, but at least they were able to do it.

Tesla is similarly maturing as a company, and making more parts available to more customers around the world is a step towards that more mature position. Customers need to be able to get parts to repair their vehicles or have a body shop procure them directly. To date, Tesla has struggled to accommodate this need, but this new store is a good sign.

Reeling this vision back down to reality, Tesla still regularly struggles to actually provide parts to the approved body shops that order them. A simple repair of my driver’s side door handle took several weeks just for the parts to arrive after the initial request was put in. That seems unnecessary and hints at deeper issues with the company’s parts supply chain.

I’m not alone in this experience, with many customers waiting months for necessary parts to arrive before their vehicles could be repaired. Tesla needs to do better when it comes to supplying parts to customers and body shops, but this recent addition to the store gives us hope that the company is actually taking the need seriously.

About the Author

Kyle Field I'm a tech geek passionately in search of actionable ways to reduce the negative impact my life has on the planet, save money and reduce stress. Live intentionally, make conscious decisions, love more, act responsibly, play. The more you know, the less you need. TSLA investor.

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Honda Announces Changes in Automobile Production Operations in Mexico

EL SALTO, Jalisco, Mexico, September 6, 2019 – Honda de Mexico, S.A. de C.V., Honda’s production and sales company in Mexico, today announced that it will shift production of the HR-V from its Guadalajara plant, which currently produces motorcycles, automobiles and power products, and consolidate all HR-V production at its Celaya plant from early 2020.… Continue reading Honda Announces Changes in Automobile Production Operations in Mexico

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No-deal Brexit would ‘destroy the lives of the next generation’ — Peugeot CEO – S&P Global

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NTSB Faults Driver & Autopilot In Fire Truck Crash

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Published on September 5th, 2019 |

by Steve Hanley

NTSB Faults Driver & Autopilot In Fire Truck Crash

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September 5th, 2019 by Steve Hanley

On the morning of January 22, 2018, a 2014 Tesla Model S rammed into the back of a parked fire truck that was responding to a prior accident. The fire truck was parked in the left hand travel lane of a highway at the time. The Tesla was operating in Autopilot mode at the time of the collision.

On September 4, the National Transportation Safety Board released its findings after an investigation of the crash. As reported by CNBC, a statement by the NTSB read as follows: “The probable cause of the Culver City, California, rear-end crash was the Tesla driver’s lack of response to the stationary fire truck in his travel lane, due to inattention and over reliance on the vehicle’s advanced driver assistance system; the Tesla’s Autopilot design, which permitted the driver to disengage from the driving task; and the driver’s use of the system in ways inconsistent with guidance and warnings from the manufacturer.”

Known Knowns & Known Unknowns
From data recovered from car after the collision, Tesla told the NTSB that Autopilot had been active for 13 minutes and 48 seconds before the crash and that the driver’s hands weren’t on the steering wheel for the majority of that time, according to a report by Transportation Topics.

A witness to the crash, which occurred on the 405 freeway in Culver City, California, reported seeing the Tesla speed into the fire truck without braking. “I could see the driver and I saw his head leaned far forward as he appeared to be looking down at a cell phone or other device he was holding in his left hand,” according to a written statement released by NTSB. “The driver’s positioning struck me as odd and concerning because it was clear to me he was very focused on his phone and wasn’t watching the road ahead at all, even though he was quickly approaching the stopped fire engine.”

The NTSB found no indication that the Tesla driver had been texting or making a call at the time, but couldn’t determine whether the phone was being used for other purposes.

Tesla says the car was sending warnings to the driver prior to the crash, reminding him to place his hands on the wheel, but the driver claims he was holding the bottom of the wheel at the time. He says a large vehicle in front of him was blocking his view of the road ahead. That vehicle swerved suddenly to avoid the fire truck and the Tesla driver did not have enough time to react and take evasive action himself. He says he was looking forward at the time, which contradicts the written witness statement.

Tesla Responds
Tesla issued the following response to the NTSB report:

“Tesla owners have driven billions of miles with Autopilot engaged, and data from our quarterly Vehicle Safety Report indicates that drivers using Autopilot remain safer than those operating without assistance. While our driver-monitoring system for Autopilot repeatedly reminds drivers of their responsibility to remain attentive and prohibits the use of Autopilot when warnings are ignored, we’ve also introduced numerous updates to make our safeguards smarter, safer and more effective across every hardware platform we’ve deployed.

“Since this incident occurred, we have made updates to our system including adjusting the time intervals between hands-on warnings and the conditions under which they’re activated.”

The Autopilot Debate Heats Up
Mike Ramsey, senior automotive research director for Gartner, a global consulting firm, tells CNBC, “When an investigative authority concludes the design of something you made has contributed to a serious accident, that is bad news for an automaker. Tesla has not always been super clear about Autopilot.

“They say in the fine print this was designed as a Level 2 system, and you’re supposed to keep your hands on the wheel. But then they will also talk about and demonstrate this system as if it’s a driverless car. This creates an environment where drivers wink and say we know it’s not supposed to be used this way, but we’ll just drive with our hands off the wheel.”

Ramsey warns that Tesla could face a recall of its Autopilot-equipped cars if vehicle safety authorities, including the National Highway Safety Administration, agree with the NTSB’s conclusions and decide that flawed Autopilot design can cause serious accidents. Such a recall would be a serious blow to Tesla’s plans to deploy a fleet of robotaxis in the near future.

Is Autopilot Safe?
One of the main reasons Tesla is such a strong advocate for semi-autonomous driving technology is because of Elon Musk’s belief that it can save lives. There are more than 40,000 highway fatalities on US roads every year and many more than that around the world. The Tesla quarterly Vehicle Safety Report seems to bear out the company’s claim that driving a Tesla on Autopilot is safer than driving a conventional car.

Part of the problem is surely attributable to human failings. Despite all the warnings from our parents, we still break arms and legs falling out of trees or jumping off the garage roof using an umbrella for a parachute.

It only takes a few minutes watching “America’s Funniest Home Videos” to realize what a bunch of idiots we are. No matter what warnings Tesla may give, a certain percentage of drivers will ignore them if for no other reason than that’s what people do. If we want a risk-free world, we should probably let machines take over completely and not allow people to drive cars at all.

If I could have a word with Elon Musk, I might encourage him to dial his claims about what Autopilot can do back a notch or two. Not that Elon, the ultimate risk taker, would give a moment’s thought to anything I might say. Still, despite all the company’s protestations to the contrary, it does seem to suggest that Autopilot has more functionality that it really does.

There is also a question why cars operating in Autopilot mode seem to have difficulty identifying really large trucks in their path and reacting appropriately. We might like to entertain the idea that Teslas can drive themselves, but they can’t. Not yet, anyway. Yet we see videos of Tesla drivers asleep at the wheel or sitting in the back seat reading the newspaper.

Perhaps the problem is that Elon Musk can’t admit to himself how human people are. They can buy small weights on the internet and drape them over the steering wheel to simulate a hand on the wheel so they can play Donkey Kong on their cell phone while the car drives itself. The fault, dear Elon, may not be in your machines, but in the people who use your machines. Even you, with all the resources at your disposal, have not yet figured out how to overcome simple human foibles.

About the Author

Steve Hanley Steve writes about the interface between technology and sustainability from his home in Rhode Island and anywhere else the Singularity may lead him. His motto is, “Life is not measured by how many breaths we take but by the number of moments that take our breath away!” You can follow him on Google + and on Twitter.

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