AD #2601 – More Job Cuts Could Be Coming, CR Blasts Tesla’s Autopilot Update, Tariffs Drive Up Price of Auto Parts

This is Autoline Daily reporting on the global automotive industry.

MORE JOB CUTS COULD BE COMING
A downturn in global car sales and automakers spending billions on EVs and autonomous technology is costing auto workers their jobs. Just this week Ford said it’s going to cut 7,000 salaried workers and Bloomberg reports that in the last 6-months there’s been at least 38,000 job cuts around the world. And it could get worse. An analyst for Morgan Stanley estimates Ford would need to eliminate another 23,000 salaried jobs if its revenue went down by 5% and it did nothing else to cut costs. And others warn higher tariffs could put hundreds of thousands of jobs at risk. All this uncertainty has got to make it tough on everyone.

AUDI TO REPLACE TT WITH AN EV
And speaking of cuts, Audi says it’s going to stop making the TT and will replace it in a few years with a new electric car. The little 2-door coupe has been a part of the automaker’s lineup since 1998. And Audi’s focus on rolling out 20 BEVs by 2025 will have other impacts on its lineup as well. Bloomberg reports the next-generation of its A8 sedan, which is scheduled to come out around 2025, could go emissions-free and the R8 could go away completely.

CONSUMER REPORTS BLASTS AUTOPILOT UPDATE
A little over a month ago, Tesla introduced an update for its Navigate on Autopilot system that allows the car to automatically make lane changes without any driver input. Tesla says it helps improve safety and makes the driving experience more seamless. But Consumer Reports just tested a Model 3 with the update and says it doesn’t work very well and is less safe than a human driver. It says it cut off drivers without leaving enough space and made passes that violated state laws. Consumer Reports head of testing says “It’s incredibly nearsighted. It doesn’t appear to react to brake lights or turn signals, it can’t anticipate what other drivers will do, and as a result, you constantly have to be one step ahead of it.” Ultimately, Consumer Reports says the feature doesn’t add any meaningful assistance to drivers.

GM’S SELF-DRIVING FLEET FACES PUSHBACK
General Motors is also facing some pushback with its self-driving car plans. The automaker asked regulators to waive some safety standards to help it deploy its fleet of autonomous, ride-hailing vehicles without a steering wheel or pedals. NHTSA opened up the request for public comments and its revealed some of that feedback. Several groups, including car dealers and insurers, say more data is needed, want more safety provisions, or think the petitions should be denied outright. But the automaker did receive some support with proponents saying the technology can help drastically cut accidents. GM has said it wants to launch its self-driving fleet by the end of the year but it looks like it needs to do more to win over the public before it can do that.

TARIFFS DRIVE UP AUTO PARTS PRICES
Your next trip to the mechanic will likely put a bigger dent in your wallet. Bloomberg reports that the recent tariffs the Trump Administration imposed on Chinese goods is causing the cost of auto parts to go up. Advance Auto Parts and AutoZone both posted earnings and profits recently that beat analyst expectations because the retailers passed on the cost of the tariffs to its customers. So, until the trade dispute is settled, expect to see higher prices for your auto parts.

TURN YOUR CAR INTO A BILLBOARD
Osram is an automotive lighting supplier company, and one of the advanced projects it’s working on is putting an array of LED pixels on the outside of car doors that become video display screens. The screens can be used to show when a car is in autonomous mode, or send out traffic alerts, or be used for display advertising. There are billions spent on digital advertising so why not on cars? In fact, the ads could be tailored to specific areas where the car is driving. Autonomous cars need expensive hardware and software so this could pay for it all. In fact, it could even be used by owners of regular cars, because the affordability is becoming a big issue.

KIA TEASES INTERIOR OF NEW SMALL CROSSOVER
Remember Kia’s all-new small crossover it teased recently? Well, now here’s a look at the interior. It features a layered, floating dash design with a large 10 and a quarter inch display screen mounted high in the driver’s line of sight. A number of interior lighting options will also be available. The yet-to-be-named model will start rolling out by the end of the year.

Don’t forget to catch Autoline After Hours this afternoon. Our special guest is Carl Widmann, the head of Ford’s performance division, who will also be bringing a Mustang GT350 to the studio with him. So this is your chance to learn about Ford’s performance vehicles. That’s this Thursday at 3PM eastern time on our website, Autoline.tv.

But that wraps up today’s show, thanks for watching and please join us again tomorrow.