Category: In the News

Great insights at MOVE America’s investment strategies panel!

MOVE America’s investment strategies panel, The panelists were:
Bob Bennett from Cities Today
Emily Yates from Southeastern Pennsylvania Transportation Authority (SEPTA)
Thomas Bartholomew of the Department of Energy, Environment and Climate Action
Baris Guzel from BMW i Ventures
Morteza Farajian from the Build America Bureau at the U.S. Department of Transportation

MOVE America 2023

Here we go! Early at #MOVEAmerica first things first, already met with Craig Lozofsky of MOTER Technologies. And what is an event without a great cup of coffee? Thank you to the good people at Aon for a great first cup!☕️ ?George Ayres Practically the first to arrive at #MOVEAmerica2023 Meeting up with fellow early-riser Craig Lozofsky of MOTER The good (and smart) people at Aon offering a fabulous cup of coffee at MOVE

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!

Electric – Connected – Predictive

As the automotive industry transitions towards EVs, many important questions have arisen about maintaining these increasingly complex and expensive vehicles.

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.

Broken Record

With summer winding down, one theme dominated headlines around the world for the last two months: record heat. Temperatures from California to Greece reached record highs, with hundreds of millions of people locked in a months-long pattern of extreme temperatures with little relief. In Phoenix alone, residents experienced a mind-boggling and dangerous record of 31 consecutive days with high temperatures over 110 degrees Fahrenheit. In Asia, the Caribbean, and in Europe, countries faced unprecedented stretches of heat with the Italian region of Sardinia hitting nearly 120 degrees Fahrenheit. Coupled with abnormally dry conditions, hugely popular tourist destinations such as Rhodes and Maui faced massive fires killing hundreds of people and causing billions of dollars worth of damage. It is evident that summer is getting hotter and more dangerous. The question is, what can the auto industry do to speed up efforts to change the vehicle mix and help combat climate change? Great progress has been made in the last 15 years in the development and adoption of both EVs and importantly connected car services. EVs have captured a significant minority of global new car sales, increasing from 4% of new car sales in 2020 to 14% in 2022. .Likewise, according to research done by Smartcar, 91% of all vehicles sold in the United States in 2020 were connected to the internet, bringing advanced features to customers and moving the industry closer to the concept of software defined vehicles. These high-tech advancements were intended not only to improve the customer experience, but also to lessen the automotive industry’s impact on climate change. EVs are projected to phase out ICE powered vehicles, eliminating tailpipe emissions, while connected vehicle software will optimize the user experience and efficiency of vehicles. Despite these efforts however, climate change is not slowing down, and a variety of new problems have arisen that significantly impact the benefit afforded by EVs and advanced connected car technologies. These issues range from vehicle wear, to power grid drain, to rare earth material (REM) shortages. An article published last week by The Drive reported that the tires on Rivian’s R1T and R1S models are wearing out in as few as 6,000 miles. Rivians are notably very heavy and have massively powerful electric motors able to propel the three and a half ton vehicles to 60 mph in 3.3 seconds. But the incredible power and weight of these EVs have seemingly left the tires fitted to the vehicles outclassed, creating the potential for an enormous increase in rubber waste and ownership expenses. As EVs become larger, heavier, and faster this problem will only increase, fueling the current environmental crisis and apprehension about EV adoption.  In the Sun Belt, the dangerously hot summer conditions caused the need for around the clock air conditioning in spaces across most of the affected states, It was reported by Arizona Public Service that July 14th and 15th each set records for the highest consumer power demand in the state’s history. And Arizona’s power supply runs mostly on natural gas, which while better than coal, still contributes to the pollution of the atmosphere. Higher temperatures caused by climate change require more air conditioning, which in turn creates more pollution. EVs are not responsible for this situation, but their increasing need for power may have long term impacts on states still utilizing fossil fuel power generation methods. So increased demand from consumers to cool their homes and charge their EVs fuels a vicious cycle fueling the climate crisis. All of these issues in conjunction with the exponential growth in chip demand for high-tech vehicles has forced the auto industry to face unexpected and sometimes uncomfortable questions about their collective efforts to combat climate change. The news is not all bad however, as the products and services that are having unintended consequences on the climate may also be able to help solve them. Though costly, measures such as bi-directional charging, where EVs contribute excess power back into a home or the grid could be implemented as a way to shed some of the electrical load caused by extreme weather. A less expensive alternative that is available today is interruptible charging, in which vehicle charging can be remotely controlled and suspended while plugged into home chargers during the hours where electricity demand is at its highest. Another option is smart routing which could bring down the environmental cost of ownership and help offset the climate impact of bringing new technology into vehicles. It is inevitable that EVs will continue to gain market share, and software defined vehicles will become the industry standard. With creative and proactive solutions such as those mentioned above, the automotive industry will be able to more successfully contribute to the struggle against climate change, working to safeguard the world for future generations. All of us in the automotive industry can make a big difference.

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.