Spotlight on Tech Start-Ups
With MOVE 2023 just around the corner and MOVE America drawing near, our team at AutoMobility Advisors is preparing for a trip to Austin, Texas. This event, starting Sept 26th next week, is set to become a gathering point for professionals in the mobility and transportation industry. AMA will not miss the opportunity! One of the key focal points at MOVE America will be the presence of tech start-ups. These companies play a vital role in shaping the future of mobility with their innovative solutions and technologies. Tech start-ups have become significant contributors to the mobility sector in recent years. Their innovative ideas span from electric and autonomous vehicles to smart infrastructure and mobility applications. At MOVE America, these start-ups will have a platform to showcase their innovations and foster collaboration. Our team recognizes the importance of these emerging companies in driving innovation within the industry. Their agility and fresh perspectives challenge the status quo, pushing for advancements in mobility solutions. AutoMobility Advisors’ primary objective at MOVE America is to connect with industry peers, gain insights, and explore potential partnerships. We understand that the future of mobility will require collaboration, innovation, and adaptability. MOVE America provides an ideal environment for networking and sharing expertise within the industry. As we prepare for our visit to MOVE America, we are excited about the opportunities it presents. We anticipate engaging in discussions with industry leaders, sharing our experiences, and contributing to the collective effort to redefine transportation. Stay tuned for updates and insights from MOVE America 2023 as we delve into the discussions, innovations, and partnerships that will shape the future of mobility and transportation. #MOVE2023 #MOVEAmerica #Mobility #TechStartUps #AutoMobilityAdvisors #Transportation #Innovation
Tech Training Transition, Today!
For the first time in history, workers from Detroit’s Big Three automakers have decided to go on strike simultaneously. After failing to reach a new deal by 11:59 pm this past Thursday night, United Auto Workers’ President Shawn Fain directed workers from the largest union in America to walk off the line at three assembly plants: the GM factory in Wentzville, Missouri, a Stellantis plant in Toledo, Ohio, and a Ford plant in Wayne, Michigan. As a part of Shawn Fain’s “standup strike” strategy, only 13,000 of the 150,000 workers in the UAW are on strike right now, but more shutdowns are threatened at a moment’s notice if negotiations do not proceed as planned. UAW workers are striking for a variety of improved benefits including a 40% increase in wages, better retiree healthcare, and the restoration of lost pension benefits. Many within the UAW see the successes of the OEMs, especially with the increasingly massive adoption of EVs as the perfect time to field their demands for matching improvements in pay and benefits. Antiquated mindsets have left the average worker in the dust, but OEMs have a once in a generation opportunity to reframe their relationship with workers and unions as this strike progresses. For the last century, the relationship between worker and employer has evolved quite significantly. The advent of collective bargaining in the automotive workplace during the 1930s, 40s, and 50s laid the groundwork for the modern relationships between unions like the UAW and Detroit’s Big 3 OEMs. Decades of negotiations and strikes defined the pay, hours, and benefits that the average worker receives in 2023, but as technology rapidly advances within the smart vehicle and EV spaces, the needs of these workers (and of the OEMs) have suddenly been turned upside down. OEMs have traditionally considered their factory employees blue collar workers, more akin to electricians, machinists, or even plumbers. This mindset is outdated however, as cars increasingly do not require the assembly of engine parts and transmissions, but instead of high-tech motors and batteries. Perhaps thinking of line workers as high-tech employees is where the real future lies. It is no secret that the realities of manufacturing are changing significantly. The last twenty years have seen the rise of automation within manufacturing. More and more “robots” and other high tech industrial systems are being implemented, requiring fewer and fewer people to do the same jobs. For example, an engine assembly line that required 100 people in 1995 may only need a fraction of that total to function today. Even on traditional ICE assembly lines, what is required of the workers has been changing for years. Now, as EVs gain traction and automakers dedicate more and more of their time, capacity, and resources to their development and production, these workers will need to be reoriented and retrained to do things essential to EV production. As a part of an eventual deal reached with the UAW, OEMs will need to consider how high tech cars require more high tech workers, and how the benefits afforded to their tech employees should align with the technological intricacies of modern EVs. According to Representative Debbie Dingell (D-MI), battery plant employees in Lordstown, OH are making $16/hour, while employees at a neighboring McDonalds are making $23/hour. Pay issues like this are partially a symptom of the enormous cost undertaken by OEMs to retool their factories for EV production, modernize old facilities, comply with Federal regulations on material sourcing, and incorporate all of the advanced “smart” mobility technologies that consumers now demand into new vehicles. Detroit’s Big 3 along with other auto manufacturers have justified the lagging pay and benefits as an inevitable cost-saving measure, arguing that consumers will struggle to afford new EVs if union demands are met. Moreover, the Big 3 are competing against competitors that do not have unionized labor, squeezing profitability even further. While these concerns do have some merit in the short term, a reoriented mindsight shows that treating plant employees as high tech workers and investing in them as such will pay off in the long run. And unlike McDonald’s, which already struggles to staff their franchises, OEMs will have an increasingly hard time hiring high-tech workers for entry level wages, potentially leading to harmful staffing shortages. The requirements of the Inflation Reduction Act (IRA) will continue to constrict OEMs and incentivize them to build more EVs in America, and by investing in workers today, OEMs will be better prepared to shift over to all electric vehicle production within the next 10-15 years. Strikes are a complex matter. Disagreeing leaders are forced to come to a compromise on nearly non-negotiable terms, sometimes accepting sub-optimal outcomes. Complexity doesn’t even begin to describe the difficulties of negotiating a deal between three of the largest corporations in the world and 150,000 workers in 2023. Despite this though, there are solutions which are mutually beneficial to the OEMs and UAW alike. With some shrewd negotiations and a focus on a better future, the OEMs and the workers will be able to come to an agreement and work together to forge a path through this brave new world. Learn more about how the AutoMobility Advisors team can help you and your business seize the amazing opportunities to serve the new mobility market. Click on the link below and get in touch, we’d love to talk with you!
George Ayres: The Mobility ‘Matchmaker’ featured at Driving Mobility Podcast
“Meet the mobility ‘matchmaker’ who connects established auto companies and scrappy startups to collaborate, innovate“ In a recent episode of the “Driving Mobility” podcast series by ParkMyFleet hosted by Michele Pierog, George Ayres, the Managing Director of AutoMobility Advisors, shares valuable insights into the dynamic mobility industry. The episode, titled “Meet the mobility ‘matchmaker’ who connects established auto companies and scrappy startups to collaborate and innovate,” provides a comprehensive look at the ever-evolving mobility landscape. Throughout the podcast, Ayres, drawing from his extensive three-decade-long career in the mobility sector, explains his crucial role as a bridge between established automotive giants and ambitious startups. He helps both parties navigate product planning, sales management, and business development. A central theme of the conversation is the importance of collaboration in the mobility industry. Ayres emphasizes that success in this field hinges on working together. It involves aligning the innovative drive of startups with the resources and industry knowledge of established players. The mobility industry is constantly changing due to factors such as electrification, sustainability, and evolving consumer preferences. Ayres discusses the vital importance of adaptability and innovation to thrive in this fast-changing environment. Lastly, the podcast explores the concept of “success” in the mobility industry. Beyond just market share and financial metrics, Ayres and Pierog discuss the broader societal impact of success, which involves reshaping transportation for the benefit of society. As the mobility sector undergoes a profound transformation, George Ayres emerges as a guiding figure, ensuring that startups and established companies find common ground to advance the industry. The podcast offers valuable insights into Ayres’ role as the mobility “matchmaker” and the promising future of transportation. Listen to it here: RSS: https://player.rss.com/drivingmobility/1103812 or in Spotify: https://lnkd.in/eYPVi5yM
George Ayres featured at the EisnerAmper podcast
In the rapidly changing landscape of the automotive industry, staying ahead of the curve has never been more critical. George Ayres, the founder and Managing Director of AutoMobility Advisors, was recently featured on the EisnerAmper podcast with Aimann Rasheed, and discussed the topic of “Digital Transformation in Automotive.” The podcast provided a glimpse into the future of the automotive industry, which is currently undergoing a profound transformation, largely driven by advancements in digital technology. Topics ranged from connected vehicles and autonomous driving to smart manufacturing and data analytics. George shared his vision of what lies ahead for the industry, emphasizing the pivotal role of digital transformation. One of the central themes of the conversation was the importance of embracing technology within the automotive world. George, through his experience at AutoMobility Advisors, underscored how digital transformation can enhance various aspects of the industry, from improving customer experiences to optimizing supply chain management. By harnessing the power of data and automation, automotive companies can streamline operations, reduce costs, and ultimately deliver a superior product to their consumers. However, it’s essential to acknowledge that no transformation comes without its set of challenges, and the automotive industry’s digital journey is no exception. George Ayres and Aimann Rasheed delved into the hurdles that companies may encounter during this transformative process. These challenges encompass concerns related to data security, adapting to new business models, and managing the complexities of integrating digital technologies into traditional automotive processes. Despite these challenges, the conversation also highlighted the tremendous opportunities that await those who can navigate them successfully. In a world where customer expectations are constantly evolving, George Ayres emphasized the importance of adopting a customer-centric approach. He pointed out that by leveraging digital tools, automotive companies can better understand their customers’ needs and preferences. This deep understanding allows them to create tailored experiences and products that resonate with their target audience, thereby fostering customer loyalty and satisfaction. To hear George Ayres and Aimann Rasheed’s engaging conversation, you can listen to the full podcast episode here. Stay tuned for more exciting discussions and insights from industry experts on the EisnerAmper podcast. Don’t forget to follow the conversation using the hashtags #EisnerAmperPodcast and #AutoMobilityAdvisors on social media.
Dan Teeter moderates a panel discussion on “Expectations of Vehicle Connectivity in a Rapidly Evolving World” at Auto Tech: Detroit
On Wednesday, June 7th, 2023 I attended a great panel discussion at Auto Tech: Detroit on “Expectations of Vehicle Connectivity in a Rapidly Evolving World”. Industry experts Dan Teeter, Advisory Director of AutoMobility Advisors; Greg Geiselhart, VP of Sales and Marketing of WirelessCar and Denise Barfuss, Senior Manager, Marketing & Operations, Connected Vehicles, Nissan Motor Corporation shared their insights. Stephen Bell, Chief Analyst of Connectivity at Wards Intelligence, skillfully moderated the discussion. The panel explored challenges, opportunities, and the impact of vehicle connectivity on the automotive industry. Topics discussed included advanced connectivity features, AI and machine learning, privacy, and security considerations, and the potential of connected vehicles. Well attended and overall a great discussion. All gained valuable insights into the future of vehicle connectivity.
George Ayres moderates a panel discussion on ATSC 3.0 Data Delivery to Automobiles at NAB, Las Vegas
George Ayres moderates a panel discussion on ATSC 3.0 Data Delivery to Automobiles at NAB, Las Vegas
NYC Auto Show 2023
AMA Featured Event NYC AUTO SHOW 2023 The New York International Auto Show 2023 The New York International Auto Show 2023 was an exciting event for car enthusiasts from all over the world. We had the opportunity to attend the show, and it was a great experience. We were able to witness the unveiling of some of the most anticipated electric vehicles in the market, including the 2024 EV Jeep Wrangler and the 2024 EV Subaru Crosstrek Wilderness. The unveiling of the 2024 EV Jeep Wrangler, was one of the most anticipated cars at the show. The new electric Jeep Wrangler is an impressive vehicle that combines the classic look of the Wrangler with a powerful electric drivetrain. The new Wrangler is also equipped with advanced features like regenerative braking and a range of over 300 miles on a single charge. We were all impressed with the Jeep’s new design and capabilities, and we couldn’t wait to test drive it in the future. Another electric car that caught our attention was the 2024 EV Subaru Crosstrek Wilderness. The new Subaru Crosstrek is designed for off-road adventures, and it is the perfect car for those who love to explore the great outdoors. The Crosstrek Wilderness is equipped with a powerful electric drivetrain that provides a range of over 300 miles, making it perfect for long road trips. The car is also equipped with a number of advanced features, including a terrain management system, hill descent control, and more. Another car at the show was the Disney-branded Hyundai Ioniq 5. This electric car is a collaboration between Hyundai and Disney, and it features a unique design that is inspired by the famous Mickey Mouse character. The Ioniq 5 is also equipped with advanced features like wireless charging and a range of over 300 miles on a single charge. The car is perfect for families who want to enjoy a fun and eco-friendly ride. Not to be missed, Nintendo, the famous video game company, teamed up with Toyota to create a vehicle that is designed specifically for gaming on the go. The car itself is based on an existing model but has been modified extensively to include a built-in Nintendo Switch console and a variety of other features that make it the ultimate gaming vehicle. So fun! Overall, the New York International Auto Show 2023 was an amazing experience. We had the opportunity to see some of the most innovative and exciting electric cars on the market, and we were impressed with the advanced technology and design features of each vehicle. We look forward to seeing these cars on the road in the near future, and we can’t wait to see what the future holds for the electric vehicle industry. NADA 2024 CES 2024 AutoTech Electrification 2023 MOVE America 2023 Auto Tech: DETROIT 2023 NYC Auto Show 2023 Ducati 2023 NAB Show 2023 CES 2023 Next >Close NADA 2024 CES 2024 AutoTech Electrification 2023 MOVE America 2023 Auto Tech: DETROIT 2023 NYC Auto Show 2023 Ducati 2023 NAB Show 2023 CES 2023 Let us help you succeed in AutoMobility! Edit Template Contact Us Today Name Email Message Send Edit Template Get to Know Us About Our Team Consulting Services Events AMA News Get the AutoMobility Roadmap Newsletter White Papers & Reports AMA Thought Leadership Let’s Connect Contact Us Follow us on LinkedIn Follow us on YouTube Copyright @2024 AutoMobilityAdvisors, All Rights Reserved. Edit Template
AutoMobility Advisor visits 2hire in Rome!
AutoMobility Advisor’s Dan Teeter, Hayden Teeter and family recently had the opportunity to visit one of our clients, 2hire, at their headquarters in Rome, Italy. As a leading technology company in intelligent and connected mobility solutions, 2hire is dedicated to creating a connected world by connecting vehicles, bridging them with services and people. This mission aligns perfectly with AutoMobility Advisor’s focus on providing innovative solutions to their clients in the automotive industry. Dan and Hayden’s visit provided a unique opportunity to gain a deeper understanding of 2hire’s operations, as well as to build stronger relationships with the company’s leadership team. One of the highlights of Dan’s visit, was the great insight into the innovative technology solutions 2hire is developing, the company’s commitment to sustainability, and the ways in which they are building a strong company culture. AutoMobility Advisor is working with 2hire to help them achieve their goals and make a positive impact on the world. Overall, Dan and Hayden Teeter’s visit to 2hire’s headquarters provided a fascinating glimpse into the world of intelligent and connected mobility solutions. Here at AutoMobility Advisors are proud to be part of the innovative work being done by 2hire, and hope to inspire others in the industry to embrace new technologies and work towards a more connected, sustainable future.
AMA goes to Ducati in Nashville
AMA Featured Event Ducati’s Ready 4 Red tour We recently had the opportunity to attend the unveiling of Ducati’s Ready 4 Red tour. George Ayres, a motorcycle enthusiast, and I, were thrilled to be a part of such an exciting event and learn more about Ducati’s latest offerings. The event was held in Nashville, Tennessee and it was a perfect setting for the unveiling of Ducati’s latest models. The highlight of the event was meeting Jason Chinnock, CEO of Ducati North America. He was very personable and took the time to talk to everyone, sharing his passion for motorcycles and the Ducati brand. It was fascinating to hear about the history of the company and the dedication of the people who work there. Another highlight of the event was meeting fellow AMA directors Chip Goetzinger and Dan Teeter. We had a great time getting to know each other and sharing our love of motorcycles. It was great to meet like-minded people who are as passionate about riding as we are. The Ready 4 Red tour showcased Ducati’s latest models, and it was amazing to see the range of bikes they offer. From sportbikes to adventure bikes, there was something for every rider. The attention to detail and craftsmanship of each bike was impressive, and it was clear that every model was designed with the rider in mind. Overall, the unveiling of Ducati’s Ready 4 Red tour was an unforgettable experience. It was an honor to meet Jason Chinnock and the other AMA directors, and I learned so much about the Ducati brand and the people who make it great. If you’re a fan of motorcycles, I highly recommend attending a Ducati event and experiencing the passion and excitement for yourself. NADA 2024 CES 2024 AutoTech Electrification 2023 MOVE America 2023 Auto Tech: DETROIT 2023 NYC Auto Show 2023 Ducati 2023 NAB Show 2023 CES 2023 Next >Close NADA 2024 CES 2024 AutoTech Electrification 2023 MOVE America 2023 Auto Tech: DETROIT 2023 NYC Auto Show 2023 Ducati 2023 NAB Show 2023 CES 2023 Let us help you succeed in AutoMobility! Edit Template Edit Template Contact Us Today Name Email Message Send Edit Template Get to Know Us About Our Team Consulting Services Events AMA News Get the AutoMobility Roadmap Newsletter White Papers & Reports AMA Thought Leadership Let’s Connect Contact Us Follow us on LinkedIn Follow us on YouTube Copyright @2024 AutoMobilityAdvisors, All Rights Reserved. Edit Template
The High Cost of EV Adoption Today
George Ayres Automotive | Leader | Sales | Marketing | Mobility | Connected | Electric | Autonomous | Shared | Revenue | Growth 18 articles The transformation of the auto industry from internal combustion engines to battery power is accelerating, no doubt about it. And the infrastructure, charging networks, and government support for this change are increasing. Consumer themselves are listening, learning, and becoming more interested in moving towards EV’s too. The article below describes a recent Consumer Reports survey that said 14% of people would definitely purchase an EV, but twice this number (28%) definitely “would not” consider an EV. What about the 58% in the middle? What will it take to move them? I think the main issue at the moment is not range, charging infrastructure, or fear of new tech. It’s simply cost. EV’s are expensive right now. Too expensive! And it seems things will be this way for at least 3 years. Let’s look at why. https://www.linkedin.com/embeds/publishingEmbed.html?articleId=8431522422095463804&li_theme=dark It’s clear that soon we will have many varieties of electric vehicles available, and some will be more affordable. All OEM’s are moving quickly. Just take a look at the center-spread of this week’s Automotive News (shown below) and you can see that every Automaker is moving faster to transform their product line-up to more EV’s. And States like California are moving to full EV only. But much of this terrific new product development is not helping buyers yet, as the models currently available for sale are all just too expensive. For example, the EV market leader, Tesla, has not expanded its model range for awhile, and even the Model 3 starts at $45k. Ford has the F-150 Lightning and Mach E, but they both cost $40k or more, and very hard to get. And yes, the Cadillac Lyriq sold out in a few hours, but it is in very limited production and costs over $60,000 which is much more expensive than the majority of the buyers in the new car market can afford. And because GM is no longer eligible, there is not even an EV tax credit for this vehicle. But GM did recently reduce the price of the Chevy Bolt. So GM is clearly thinking about EV affordability. https://www.linkedin.com/embeds/publishingEmbed.html?articleId=8673126474556867075&li_theme=dark But all of the new EV vehicles are not here yet. And people need to buy something, or upgrade their current vehicle, and can’t wait. Supply is constrained due to the ongoing semi-conductor chip shortage. And component material prices for batteries are increasing, especially for lithium and cobalt, due to the overall growing EV demand. See the article below from Alix Partners, a research firm, outlining the current situation. One key point they mention is this comparison. “At $3,662 per vehicle (in the US), ICE raw-material content is nearly double pre-pandemic levels. This pales in comparison to BEV raw-material content, which is now $8,255 per vehicle. The disparity is driven largely by cobalt, nickel, and lithium prices.” https://www.linkedin.com/embeds/publishingEmbed.html?articleId=7764712561928756266&li_theme=dark While new advances in battery technology like “solid-state” batteries promise better range and greater materials supply, these batteries currently cost four times more than standard lithium-ion batteries, exaggerating the current problem. Toyota is well placed to lead in this area, but it will be awhile before we see the majority of vehicles with solid-state batteries. https://www.linkedin.com/embeds/publishingEmbed.html?articleId=9124043172319042537&li_theme=dark Add in rising global inflation, which means you can buy less for the same money, and a war in Ukraine which keeps energy markets volatile, and no wonder consumers are hesitating. While they are paying $5 for gasoline, and sure don’t like it, coming up with the cash for a new EV is getting harder and harder. For example, the average new car payment is now over $700 per month. Since the cost of borrowing is rising as the Fed raises interest rates to combat inflation, car buyers can either buy less car, or they have to put up more of their income for a car. Since all other prices are also rising, like mortgage payments, groceries, and school supplies, they feel the squeeze. https://www.linkedin.com/embeds/publishingEmbed.html?articleId=7812184282103910342&li_theme=dark And the average car loan length is now six years, which means that consumers that buy ICE vehicles today will be “upside down” a few more years longer, meaning they will owe more for the car than the car is worth. A negative equity situation. We have seen this phenomenon in the car market more than once, and it never works out for the either the consumer or the automaker. It delays purchases and keeps people trapped in their old technology. The average car on the road in the US is currently 12.2 years, which is much longer than historically we have seen. The current financing market dynamics are suggesting this may get even longer. The promise of a new EV will be in the distant future for too many. https://www.linkedin.com/embeds/publishingEmbed.html?articleId=8622472421372719983&li_theme=dark So if OEM’s want people to move to EV’s they need to bring affordable EV’s to market. They need to work with the government and their ecosystem to ensure that there is wide penetration of EV infrastructure. And of course the government needs to increase EV incentives and encourage more switching from ICE to EV, and not with just tax cuts. What about helping people pay for installing home chargers? While there is good commitment for this from the current administration, these programs are not yet simple, practical, and easy to access. Why not a “voucher” system for anyone buying an EV from a dealer, or even online, to receive a rebate on the cost of a home charger. Tax credits are hard to access and too far removed from the original cost outlay. Consumers need relief on this cost more quickly. https://www.linkedin.com/embeds/publishingEmbed.html?articleId=6987414249488379809&li_theme=dark Overall consumer will move to electric vehicles, the trend is now inevitable, as product development cycles for automakers are many years long. The ocean liner turns slowly. So we will see lots of EV choices for new car buyers in a few years. And high volume categories like Pick-up trucks will even be very EV