AD #3220 – How Polestar Generates Cash w/o Selling a Car; Diess Gets to Keep His Job; Mercedes Gets L3 Approval in Germany
December 9th, 2021 at 11:48am
Listen to “AD #3220 – How Polestar Generates Cash w/o Selling a Car; Diess Gets to Keep His Job; Mercedes Gets L3 Approval in Germany” on Spreaker.
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Runtime: 10:17
0:08 Herbert Diess Gets to Keep His Job
1:08 GM Plans to Build Battery Packs at Orion Plant
1:53 Biden Signs Order to End Government ICE Vehicle Purchases
2:43 Mercedes Gets L3 Approval in Germany
4:09 NHTSA Discusses Tesla’s In-Vehicle Video Games
4:36 Schaeffler Partners to Make Electric Motors More Efficiently
5:13 Bentley Approved to Independently Certify Vehicles
6:36 How Polestar Generates Cash w/o Selling a Car
8:19 Jeep Using Connected Tech to Enhance Off-Roading
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HERBERT DIESS GETS TO KEEP HIS JOB
Herbert Diess gets to keep his CEO job at Volkswagen. That came out of a press conference today with Hans Dieter Potsch, the chairman of the supervisory board, Daniela Cavallo, the top labor representative of the board, and Mr. Diess himself. While they all put on a brave face, it’s clear that there are still tensions between management and labor. Interestingly, Daniela Cavallo admitted some jobs will no longer be needed as the company transitions to electric cars. She said the company will provide good early retirement packages for them. And she said labor will cooperate with VW to achieve its productivity targets. Herbert Diess wants to slash assembly time by one-third to match Tesla’s productivity. He also said he was worried that Volkswagen wasn’t going to be moving fast enough, but is now satisfied that’s been resolved. So our early take is it looks like Herbert Diess won a major victory.
GM PLANS TO BUILD BATTERY PACKS AT ORION PLANT
GM is rolling out more details on its EV onslaught. It’s investing $160 million at its Orion assembly plant in Michigan to build battery packs, no doubt using GM’s Ultium batteries. The Detroit News reports construction starts next summer and will be completed in 2025. That plant currently makes the Bolt EV and EUV. Here’s our Autoline Insight. GM says it’s going to have an assembly plant dedicated to making electric trucks. Well, GM’s Flint assembly plant that makes trucks is not far from the Orion battery pack line. So it would be a short haul to ship battery packs from Orion to Flint.


BIDEN SIGNS ORDER TO END GOVERNMENT ICE VEHICLE PURCHASES
Earlier this year, the Biden Administration announced plans to replace the federal government’s fleet of vehicles with electric models. And now the President is putting that proposal into effect. Yesterday, Biden signed an executive order to end the purchase of ICE vehicles by 2035. Light-duty vehicles the government purchases will be zero-emission by 2027. There are 650,000 vehicles in the government’s fleet and it buys about 50,000 annually.
MERCEDES GETS L3 APPROVAL IN GERMANY
Mercedes is the first automaker to get approval for a Level 3 autonomous system in Germany. It’s launching under the name DRIVE PILOT as an option for the new S-Class in the first half of next year. The system consists of surround sensors, Lidar, a camera, microphones for detecting emergency vehicles and an HD map, which is updated via a backend connection and compared to navigation and what the car’s sensors are seeing. Then on top of that, it also has redundant systems for the steering and braking as well as the electrical system. Mercedes doesn’t say what it will cost, but it sure doesn’t sound like a cheap system to us. Right now, there’s only about 13,200 kilometers or roughly 8,200 miles where DRIVE PILOT will operate and it won’t go above speeds of 60 km/h or about 37 MPH. While that may not seem very fast, we still think the hand-off between human and car will be clumsy and complicated. Mercedes says the driver must be ready to take over control at all times, but it will also allow the driver to shop online or respond to emails from the center display screen.
NHTSA INVESTIGATES TESLA OVER IN-VEHICLE VIDEO GAMES
And other major markets, like the U.S. and China, where Mercedes is also testing DRIVE PILOT, are going to keep a close eye on how well that hand-off goes. And it could be a while before agencies trust humans to do the right thing. In the U.S. right now NHTSA is discussing with Tesla about a feature released this summer that allows passengers to play video games on the front screen while the vehicle is in motion. The system asks the user to confirm that they are a passenger, but anyone can press it and the worry is a driver could easily get distracted.
SCHAEFFLER PARTNERS TO MAKE EV MOTORS MORE EFFICIENTLY
The key to chopping down the cost of electric cars is to get massive manufacturing scale. So the giant supplier Schaeffler is spearheading a 3-year program with 17 different companies to manufacture electric motors more efficiently. The project is called AgiloDrive2 and is funded by the German government with nearly €34 million. The idea is to move away from rigid production lines and replace that with highly flexible, digitalized, modules, which are easily scalable, and can be defined by software.
BENTLEY APPROVED TO INDEPENDENTLY CERTIFY VEHICLES
Bentley now has the ability to independently certify its vehicles for emissions, fuel economy and electric range. It was given the power by Britain’s Vehicle Certification Agency and will carry out the testing at a brand-new Engineering Test Centre at its headquarters in England. Obviously having to stick to strict standards, the facility features an advanced rolling road used to simulate different gradients, measure exhaust emissions from combustion engine cars or electrical energy consumption from hybrid and electric vehicles and across a wide temperature range. Bentley is going to be able to carry out these tests a whole lot faster and we expect more automakers to follow.
HOW POLESTAR GENERATES CASH W/O SELLING A CAR
When an automaker, like Stellantis, says it’s going to generate 4 billion euros in revenue from connected vehicle services and data monetization in just a few years you never really get a sense of what those features will cost at an individual level. But now we have an idea. Polestar is offering a performance upgrade that’s available in a number of major European countries via an over-the-air update. It’s only for Polestar 2 Long Range Dual Motor models, but adds 50 kW or 68 horsepower and 20 Nm of torque, which pushes the total output to 350 kW or 476 horsepower and 680 Nm or 502 lb-ft of torque. That knocks the 0-100 km/h time down to 4.4 seconds or just 1-tenth of a second faster. It’s that little of an increase because the extra power is only available from 70 km/h to 130 km/h, so you’re really going to feel it at higher speed. Now for what you’ve all been waiting for… price. Polestar says, on average, the update costs about 1,000 euros. And you know what our question is going to be. Is that amount of performance worth 1,000 euros or roughly $1,135 to you? It’s not going to be for everyone, but Polestar says over 400 upgrades have been downloaded since it launched in late November. That means it’s generated over $400,000 in a few weeks without selling a single vehicle.


JEEP USING CONNECTED TECH TO ENHANCE OFF-ROADING
So here’s how Jeep plans to use connected technology to generate more money. They call it “Freedom Connected,” and it uses AR, HUDs and OTAs. OK, let’s put that in plain English. It uses augmented reality combined with head-up displays fed by over-the-air updates. Jeep owners will be able to download off-road trails onto their nav system–for a fee of course. They’ll be able to communicate with each other, even in remote areas thanks to satellite connections. And that same V2V technology will allow them to run in platoons on the road, or off. They’re even going to offer a drone that can fly above your Jeep on off-road trails, lighting the way and presumably providing a video feed of what’s up ahead.
Elon Musk says the Biden Administration should drop all subsidies for electric cars. He says they’re not needed. But the LA Times points out that Elon got nearly $5 billion in subsidies for Tesla, Space X and Solar City. So are these wise words from the richest person in the world, or is it the height of hypocrisy? That’s the top topic on Autoline After Hours this afternoon. Also, we’ll have Jeff Stout from Yanfeng who is one of our favorite technologists, and Craig Cole from CNET’s Roadshow. It all gets going at 3 pm eastern time and you’re invited to pull up a front row seat.
But that’s a wrap for today. Thanks for tuning in.
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December 9th, 2021 at 12:30 pm
It is amazing to me that Tesla continues to release new features that sometimes make their vehicles less safe. Video screens in the back seats, and on the front screen when the car is not being driven would make much more sense, but add cost. With so many incidents of Tesla drivers operating their vehicles in Autopilot in an unsafe manner, its clear that the company should not count on them to do the right thing and not play video games while the car drives, endangering them and all of the vehicles around them.
Its only a matter of time before the first report of a serious accident happens when the driver is playing a video game in their Tesla. Let the lawsuits begin!
December 9th, 2021 at 12:49 pm
Perhaps IIHS should remove a star from all TESLAs with this video game feature until they remove it. That would finally make TESLA “get it”. Of course it would be after a ton of belly aching from their petulant child in chief Elon Musk.
December 9th, 2021 at 12:52 pm
I really don’t understand why the federal government has allowed the sale of any autonomous vehicle technology below Level 5. The results should have been predictable. And, we are just getting started, as many more vehicles with this partial autonomy technology will be sold before true Level 5 technology is ready. And fair warning: I will be filing a huge lawsuit if I am ever in an accident caused by someone over-relying on their vehicle’s autonomous systems.
As long as it remains optional, I can live with it. I just don’t want to have to pay for the technology as standard equipment on a vehicle if it doesn’t work 100% of the time. Name another feature on a car that may or may not work when called upon! The government requires that brakes work under all conditions. Why does this autonomous technology get a pass?
December 9th, 2021 at 12:57 pm
If Tesla wants to offer passengers, the option to play games, then they need to add a screen to the passenger’s side (that can’t be seen by the driver). Even if the passenger is playing the game, it would still be a distraction (or could be) to the driver, especially if not intent on driving as much as seeing if the passenger is winning (the game).
December 9th, 2021 at 1:12 pm
When someone is playing a game with the screen in the Tesla, do you lose the speedometer and other functions on the screen?
December 9th, 2021 at 1:24 pm
Ive been frustrated before by limited functions of the touch screens. Like being on a trip and wanting to use the navigation or make a change. My passenger is not able to do anything and we get the “UNABLE TO PERFORM FUNCTION WHILE IN MOTION, PLACE IN PARK” or something to that effect. Which While on the HWY isn’t really an option and so why we stopped using any vehicle Nav system and just use the phones and a cord conection. Also have the capability to play a DVD for everyone else in the car, but only if the parking break is set. Cause I love to sit out in the garage for two hours in the car to watch a movie. Who uses DVD anymore anyway. There was a bypass for that function I found and used often. However yes lots of dumb people will try and do things when they should be driving and hence the need to protect the stupid. And the stupid from killing others.
December 9th, 2021 at 1:37 pm
3 Yep! Said the same thing earlier this week here. All of these autonomous systems are nothing more than driver assist features, no different than lane assist, adaptive cruise, even ABS and traction control. Drivers are still drivers and should be prepared to be a driver at any second. Giving them the idea that a vehicle will drive itself is asking them to be distracted and available to do other things. Even if the vehicle can completely drive itself 90% of the time. Is anyone okay with their brakes, headlights, steering working 90% of the time?
I completely understand the need for baby steps and we cannot get to full autonomy without these systems being tested. I don’t have a problem with their implementation. What I have a problem with is giving customers the idea they are much more capable then they are..NONE should be called anything other than auto driving assist until they get to level 5.
December 9th, 2021 at 1:51 pm
The Granola State had a law made it illegal to watch any motion video from the front seat. The CHP were so myopic in their interpretation of the law, that they were issuing citations to early adopters of reverse cameras Consequently, rental car companies were asking OEMs to delete the reverse cameras. The CHP reluctantly agreed to not issue citations after it was called to their attention that another section of the Granola State law permitted reverse cameras… and the federal Cameron Gulbransen Kids & Cars Safety Act of 2007 was mandating reverse cameras.
December 9th, 2021 at 2:12 pm
In regards to over the air updates. How do you know you actually are getting what you’re paying for? So you pony up for the extra power how do you know you really are getting it and if you get it for how long? What can be turned on remotely can be turned off as well. Reminds me of when Tesla upped the range on their cars for people trying escape a hurricane. Sorry , but I don’t trust anyone to be honest anymore.
December 9th, 2021 at 3:09 pm
@1,2,3,4,7 – Agreed! And to add to that, I think these features (playing video games and such) should not even be thought about until we’ve achieved nearly full autonomy. It’s still just too darn early to be enticing people to engage in otherwise foolhardy activities while behind the wheel. What’s next – a ‘green light’ to drink while driving too?
Of course, I can see a market for autonomous party busses or the like.
December 9th, 2021 at 3:12 pm
@9. Paid OTA performance updates make me think of my kid buying PlayStation credits to upgrade cars in his Need For Speed game.
December 9th, 2021 at 4:25 pm
Video games should be played only in the back seat, and only with ear buds or headphones, so the driver won’t be distracted.
December 9th, 2021 at 9:22 pm
Three months after buying our Model 3 and paying extra for autopilot, a temporary medical problem was handled by autopilot. Autopilot paid for itself that day.
I will not buy any car that lacks Autopilot capability. That means working anywhere handling lane keeping and dynamic cruise control both day and night. We know Autopilot is 6-8 times safer than the typical USA fleet driver. But Full Self Driving (FED) raises the bar.
Full Self Driving adds traffic lights, STOP/YIELD signs, and integrated navigation. It does this everywhere. Still being tested by Tesla drivers, including me, in ‘real life’, it is updated about every 2-3 weeks. It is beyond the limited imagination of critics.
December 10th, 2021 at 4:19 am
Based on my hands-on experience, Autopilot specification: (1) works anywhere; (2) lane keeping; (3) traffic aware lane changes; (4) dynamic cruise control, and; (5) navigation integration. This makes Autopilot superior to geofenced systems and integrated with navigation means suggesting lane changes to reach destination. However, it requires left and right lane lines to start.
Currently testing Full Self Driving (FSD) beta, it adds traffic light and sign control. So it stops and goes based upon ordinary traffic rules. It also has virtual lanes which means painted lanes are no longer required, Both Autopilot and FSD read speed signs with GPS map backup.
December 10th, 2021 at 8:56 am
13 They are getting better and more advanced everyday. But I very much doubt your autopilot works anywhere. Or you haven’t tried many places. Bring your model 3 to Michigan in February after a good snow fall and even wait until our HWYs are cleared but have a salty white film that basically masks road stripes. You’ll want to have a full bottle of windshield washer fluid handy cause every car ahead of you kicks that salt up and turns your windshield into bathroom glass. They’ll be patches of black ice in spots so you’ll have good traction most of the trip but on or under overpasses or near a body of water the road can turn to ice without warning. Then throw in cars swerving around Kia sized potholes and road construction and let me know how autopilot does?