3-in-1 = Automotive Fun!

Something intriguing happens every day in the world. Similarly, there’s always something interesting to talk about daily or weekly in the auto industry, whether it involves new technology being developed, new models being introduced, or older designs being discontinued. So what amazing things are just on the horizon, and what’s preparing to roll into the sunset? Today on Adam’s Autos, we take a look at these topics in a special 3-in-1 article.

Hackers Beware

Infotainment systems in our cars have become prime targets for hackers. Can this issue be resolved?

If you’ve been following the auto industry in last several years, you’re likely aware of the numerous technological advancements that have been introduced or that are in development. Some of these technologies giving us a look into the high-tech future of the industry include autonomous driving, self-parking features, and adaptive cruise control. However, out of all these innovations, among some of the most immediately effective have been in-car touchscreen infotainment systems. I’m talking about systems such as Ford’s new Sync 3, Cadillac CUE, Kia UVO, Chevy MyLink, and Apple CarPlay and Android Auto. While all of them are certainly NOT created equal, in-car connectivity has put nearly every luxury or feature only a swipe or touch away from the driver. However, with each step forward, there’s always going to be a drawback or two. One major issue with these systems is that just like your everyday computer, they can be hacked. Some even remotely! YIKES! Chrysler’s UConnect system was used as a test mule recently to demonstrate the potential consequences of driving a hacked car. So what is being done to combat this issue? Some automakers believe they have a solution.

After growing concerns from consumers and the government alike, an Information Sharing & Analysis Center (Auto-ISAC) has been established, with the sole purpose of stopping cyber-attacks on unsuspecting drivers through sharing various intelligence information. Some hacking has already been prevented, although the problem continues to get more difficult to contain due to the growing amount of technologically advanced cars. The industry’s biggest concern is that ransomware could potentially become a problem, and that a hacker could fully control or shut down an entire fleet of cars unless an automaker agrees to pay them. Therefore, companies are moving swiftly to not only develop new software and other solutions to negate remote hacking, but also to form new alliances and strengthen the Auto-ISAC so they’ll have a more effective reach. Delphi, Kia, and Google are just a few companies that appear to be getting involved in the Auto-ISAC. However, alongside the added involvement comes the sharing of potentially confidential information among potential rival firms. This is an obstacle that must be proactively worked around, as new hacking cases are constantly popping up. But any forward progress is better than moving backwards. As time goes on and technology continues to surprise us, we’re bound to see more creative solutions to this problem.

Some more info here:

• http://blog.caranddriver.com/auto-industry-unites-to-take-countermeasures-against-hackers/

Power Outage: Thousands of Tesla Model 3 Orders Cancelled

Considered to be a revolution long before its introduction, Tesla's Model 3 seems to have hit its first road block.

Do you want a Model 3? There may be some more space for you to place a reservation now. Currently, about 373,000 Model 3 reservations are still being held after roughly 8,000 orders were cancelled by customers and 4,200 more orders were deemed duplicates of existing ones. Tesla previously said that they had nearly 400,000 pre-orders. What’s so astounding about this number of pre-orders is that they have all been placed before the car is technically even 100% green lit. In fact, many of these orders were placed even before the car was officially unveiled earlier this year! The last time I recall a pre-production model being this highly anticipated was GM’s roadster duo – the Pontiac Solstice and Saturn Sky – roughly eight years ago now. Tesla actually feels they could get even more pre-orders of the Model 3, but they want customers to purchase models they already have in production too. To me, that makes no sense, as the Model S and X are both significantly more expensive than the Model 3 will be. 

Tesla needs to raise $1.4 billion to begin production of the Model 3, which is due out late next year. While this figure is within most business expectations, that’s still a very sizable amount of cash, especially for a relatively new company whose stock has been down recently. Pricing of the Model 3 will begin at $35,000, and Tesla plans to make 500,000 units a year by the 2018 model year. With a starting price that roughly $50,000-$80,000 lower than other Teslas, it goes without saying that the Model 3 could be a revolutionary step forward in making not only Tesla, but electric cars in general more mainstream.

Strategy Is Key: Volkswagen Is Still Laggin’

Volkswagen Group 

Volkswagen is one of the world’s biggest automakers. And by now, everyone is aware of how much trouble VW Group has been in lately for their diesel emissions scandal, aka “Dieselgate”. Well now, word on the block is that Volkswagen group   is planning to discontinue more than 40 models across all their various lineups. Additionally, they’re supposed to begin investing billions of euros in electric cars and automated driving in efforts to become a technological and green-car leader by the 2025 model year. This is definitely in direct response to the ongoing diesel emissions issues that have tarnished the company’s reputation. But regardless of the reason, VW likely recognizes the need to constantly work on new product placement strategies for a constantly evolving marketplace. Currently, around 340 different models are in production across all of VW’s brands, such as VW, Audi, Skoda, and Spain’s SEAT (pronounced “Saye-It”). However, it’s not known at this time exactly which models will be discontinued. I had a chance to see some of SEAT’s models on my international marketing study abroad in Spain, and I observed in general that Volkswagen models are quite popular there and similar to what we see in the United States. I really liked what SEAT had to offer, and it would be interesting to see them come to the United States someday.

The 2016 SEAT Ateca. It'd be interesting to see how this model would fare in the U.S. market. However, SEAT is a VW brand found primarily in Spain, and the compact crossover market here is already quite crowded.

Back on the subject of Dieselgate: VW is expected to have to pay out even more in their settlement with U.S. drivers. Thus, the overall price the company will pay is more than $15 billion dollars now! This includes $10.033 billion in buyback offers to be given to owners of roughly 475,000 cars and $5 billion in funds to offset diesel emissions and boost zero emission vehicle production. I can hear VW’s company wallet crying now. However, that buyback amount could go down could be lower if a large enough number of owners take buybacks. 2009-2015 model year cars are eligible for $5,100 in settlement money, and some owners may get up to $10,000 in compensation. Prior owners of polluting cars will get half the amount of current owners, and people who leased cars are eligible for compensation as well. This settlement is one of the largest in U.S. history, and the plot continues to thicken. I personally like what VW has been doing lately with some of their models and lineups, but it’s still hard to say what the long-term fix will be for these emission “cheating” cars and also what the future of diesel fuel will be. Volkswagen will be around, but they certainly have some work to do to mend their company’s reputation.

Some more info here:

• http://www.autonews.com/article/20160627/OEM11/160629867/vws-u-s-settlement-to-grow-to-15-billion-in-emissions-scandal-report?cciid=email-autonews-blast

Conclusion

What are some of your impressions on some of these topics? Does your car have an infotainment system and are you concerned about hackers? Do you think electric cars will ever run the roads, and will Tesla’s Model 3 set the new standard for affordable electric transportation? Do you own a VW product, and how do you feel about the Dieselgate scandal? Which models do you think are on the chopping block, and will VW ever fully recover in the eyes of the public? Let me know what your thoughts are in the comments. Until next time: ROLL ON READERS!