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Honda Makes it Official, Lifts Cover on the 11th-Generation Civic Sedan

The 2022 Honda Civic sedan is the 11th generation of the company’s compact sedan in the U.S.

In typical fashion, Honda spent the past several months teasing the arrival of an all-new Civic sedan. Now, we’re getting the first close-up look at the 11th-generation model, albeit virtually, thanks to the COVID pandemic.

The 2022 Honda Civic adopts a new design that the automaker describes as more “simple,” “clean” and “modern.” It also adopts plenty of new technologies, both for infotainment and safety. Traditionally, this would have been the sort of formula that kept Civic high up on the sales charts. The question is whether the 2022 model can maintain momentum in a market where SUVs and CUVs, such as the Honda CR-V, have largely displaced conventional sedans and coupes.

“Civic has been the go-to choice for compact car buyers for almost 50 years and the all-new 11th-generation Honda Civic builds on that leadership with simple and sporty styling inside and out, best-in-class features and class-leading performance,” said Dave Gardner, executive vice president of National Operations for American Honda Motor Co.

Jumping in the wayback machine

Designers adhered to the mandate to pick up on the brand’s original “Man-Maximum, Machine-Minimum” design philosophy with the 2022 sedan.

The goal for designers was to reach back into the history of the Civic, which made its American debut in 1973. They were given a mandate to pick up on the brand’s original “Man-Maximum, Machine-Minimum” design philosophy. That said, no one will call this a retro-mobile.

A “thin and light” body design adopts a low hood and front fenders, with a small grille above the front bumper, a larger one below giving the new Civic a more planted feel. The new Civic migrates to LED lighting, both front and back.

Subtle flaring around the wheels yield a more aggressive and premium feel, or so Honda designers contend. The windshield pillars, meanwhile, have been moved rearward two inches, the glass flowing into a coupe-like roofline that tapers into a short rear deck.

Even with the windshield pushed back, the new cabin offers reasonable space for both front and back passengers, especially considering competitors in the compact segment. The sedan’s low beltline and ample glass provide for good visibility and enhance the sense of spaciousness.

Changes to the interior

The low instrument panel is accented by a honeycomb mesh, Honda claims, “serves both form and function, creating a dramatic visual dividing line between the audio, information displays and the climate controls.” The approach also helps keep things feeling less cluttered by largely concealing the sedan’s air vents.

The Civic’s interior features new premium materials for the next-generation sedan.

Honda says it adopted more premium materials for the 2022 model’s cabin. And it also upgraded the front seats on all trims, using a “body stabilizing” design that keeps driver and passengers firmly in place, whether on long trips or during aggressive maneuvering.

From a technology standpoint, base trims now get a 7-inch color touchscreen for an infotainment system that comes with both Apple CarPlay and Android Auto. There’s an upgrade to a high-definition, 9-inch touchscreen that is paired with wireless versions of Apple CarPlay and Android Auto.

The 2022 Civic becomes the first to offer a 12-speaker Bose premium sound system, and Touring models come with Qi wireless smartphone charging.

The push for more technology can be seen with the latest version of the Honda Sensing suite of advanced driver assistance systems. Along with existing features, such as forward collision warning with automatic emergency braking, the 2022 Civic adds a new front wide-view camera, new Traffic Jam Assist and, on the Civic Touring, Low-Speed Braking Control.

The new model also adds what Honda describes as “groundbreaking” new front airbags designed to reduce traumatic brain and neck injuries. The 2022 model also becomes the first Civic equipped with side airbags for rear seat passengers.

The 2022 Civic becomes the first to offer a 12-speaker Bose premium sound system, and Touring models come with Qi wireless smartphone charging.

Options under the hood

The 2022 Civic will offer two 4-cylinder options, like the outgoing sedan. That includes a naturally aspirated 2.0-liter package making 158 horsepower and 138 pound-feet of torque.

The powertrain now comes standard with stop/start capability, as well as a new catalytic converter. Paired with an updated CVT, it gets a bump up in fuel economy, according to the EPA. The LX trim is rated at 31 mpg city, 40 highway and 35 combined, as much as 2 mpg better the outgoing 2021 model.

The Civic EX and Touring get an updated 1.5-liter turbo-4 now making 180 hp and 177 lb-ft, up 6 and 15, respectively. The package is paired with a CVT offering Step-Shift programming. The Touring package yields 31 mpg city, 38 highway and 34 combined.

As is the norm for Honda, we can expect to see more Civic variants roll out in the next year or two, including the sportier Si and Type-R models. Whether the automaker will offer all the packages of the past, considering the decline of the passenger car market, does remain to be seen.

Look for the 2022 Honda Civic sedan to roll into U.S. showrooms later this spring.

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Tesla Crash Nudges Senators to Re-Introduce Auto Safety Bills

Sen. Ed Markey was joined Sen. Richard Blumenthal and others in re-introducing four bills aimed at improving automotive safety.

The recent crash involving a Tesla Model S appears to have spurred a legislative push to institute mandates for new vehicles making them safer, specifically technology ensuring drivers are paying attending while behind the wheel.

The Stay Aware for Everyone, or SAFE, Act is designed to mitigate issues surrounding distracted driving. The trio believes the increased use of advanced driver assistance systems encourage motorists to engage in risky behavior behind the wheel.

Although not specifically mentioning Tesla and its Autopilot technology, the timing of the reintroduction of the legislation is difficult to ignore. It should be noted that the investigation into the Houston-area crash is ongoing and it’s not been determined it Autopilot played role in the crash and subsequent fire that resulted in two fatalities.

New safety legislation

“Every year on average, over 36,000 people are killed and nearly three million more are injured in motor vehicle crashes,” said Sen. Ed Markey (D-Massachusetts) in a statement. “These numbers reveal a public health crisis that we must not accept as inevitable. We can prevent these unnecessary tragedies with proven strategies and technologies.

Tesla’s facing the fallout from another fatal crash where the driver was reportedly using Autopilot, but not as recommended by the automaker.

“That’s why I am proud to reintroduce a robust legislative package that will address several of the most dangerous safety issues on our roads. As Congress debates infrastructure and surface transportation reauthorization in the weeks ahead, I will fight for these bills and ensure that safety is at the forefront of everything we do. Upgrading our roads and highways also means upgrading safety.”

Sens Richard Blumenthal, D-Connecticut and Amy Klobuchar, D-Minnesota joined Markey in introducing that measure. It’s part of a four-bill package of auto safety bills introduced Monday. The goal is to get them added to the massive $2.3 trillion infrastructure bill.

The Tesla crash highlights one of the issues with semi-autonomous driving technology. Tesla is either the poster child or whipping boy for the issue. The National Highway Traffic Safety Administration has opened 28 probes into Tesla crashes, with 24 pending, where Autopilot was suspected of being in use, according to Reuters.

Three other auto safety bills

Recent events likely helped to put the Promoting Auto Recalls Toward Safety (PARTS) Act on the list. American Honda revealed late last week faulty Takata airbag inflators are being blamed for a South Carolina driver’s death — the 19^th in the U.S.

Takata’s faulty airbag inflators have been linked to 19 deaths and hundreds of injuries in the U.S.

The PARTS Act aims to apply lessons learned from the ongoing Takata recall — the largest in history — to improve the repair rate of vehicles subject to a recall.

It specifically authorizes the U.S. Department of Transportation to provide grants to states for use in notifying registered motor vehicle owners about manufacturer-issued safety recalls, as well as require additional reporting and an annual scorecard on how effectively automakers are completing any recalls.

The Early Warning Reporting Systems Improvement Act is designed to “fill a safety gap created by the historically low number of defect investigations launched by NHTSA in recent years,” according to a statement. The legislation requires automakers to provide more information about incidents involving fatalities and serious injuries directly to the public. It also mandates NHTSA to deliver the information it receives publicly available in a user-friendly format, so users can better evaluate potential safety defects themselves.

The fourth bill — the Modernizing Seat Back Safety Act — requires NHTSA to update its standards for seat back integrity in new vehicles. The current standard has remained largely unchanged for decades, allowing for a slew of back seat passenger fatalities, mostly children.

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Ford Starts Converting Mustang Mach-E GT Reservations to Orders Starting April 28

Ford begins converting reservations to orders for the Mustang Mach-E GT and GT Performance April 28.

Fans of the Mustang Mach-E who have been sitting on the sidelines waiting for the GT to come available, it’s time to charge up those checkbooks as Ford apparently will start taking orders for the high performance model next week.

According to macheforum.com, Ford dealers were just informed the “Mustang Mach-E Job 2 (including Mustang Mach-E GT) order bank, order guide, and price list will launch on the afternoon of Monday, April 26^th.”

The letter goes on to say that customers can convert their GT reservations to orders beginning April 28. It then tells the dealers to what they need to do to make certain the process goes smoothly and follows up with an additional note.

“For Mustang Mach-E GT Reservation customers: Some customers may believe that they can ensure an earlier build date by placing a new retail order and cancelling their reservation. This is not true. New retail GT orders will likely be scheduled into the ‘22MY. The best way for customers to get their vehicle as soon as possible is to follow the intended reservation-to-order process.”

Ford is informing reservation holders for the Mach-E GT it’s time to move from reservation to order status.

Several other posters in the forum confirmed the initial report, with one even sharing an email that links to a website.

High-performance model

Those with reservations will have some options beyond “Can I afford this?” There are two version of the vehicle available: the GT and GT Performance Edition. Both models put out 480 horsepower, use an 88 kWh battery pack, come with dual motors and all-wheel drive.

The GT Performance puts out 634 pound-feet of torque compared with 600 lb-ft for the regular GT. It takes a range hit for the extra torque traveling just 235 miles on a full charge compared with the 250 miles from the GT.

The GT Performance races from 0 to 60 mph in just 3.5 seconds whereas the GT makes that run in a slightly slower 3.8 seconds.

The GT Performance Edition comes equipped with a MagneRide damping system, Ford Performance seats, 20-inch machined-face Ebony Black-painted pockets paired with 245/45R20 Pirelli summer tires.

Prices for the Mach-E GT start at $61,600, including destination fees. That’s offset slightly by the $7,500 federal tax credit that Ford EVs are still eligible for. Deliveries of the new GTs are slated to begin this fall.

Early adopters get a trophy

For those who want to be the first to experience all new tech, i.e. early adopters, Ford offered them a little reward for their zeal. Mach-E First Edition customers in the U.S. are getting a special collectible wireframe pony sculpture that matches the color of their vehicle. The sculptures are created with the help of 3D printing at Ford’s Advanced Manufacturing Center.

Each Mustang Mach-E First Edition customer will receive a special collectible wireframe pony sculpture in the color corresponding to their vehicle’s paint job.

The sculpture is based on the large-scale wireframe model of the pony featured at the global reveal of Mustang Mach-E in November 2019.

The wireframe pony sculptures are 3D-printed in white plastic in-house at the Ford Advanced Manufacturing Center in Redford. They are then sent to a dye facility where they are dyed one of three colors — Rapid Red Metallic, Grabber Blue Metallic or Carbonized Gray — to correspond with available color choices for First Edition. Included is a baseplate with the vehicle’s VIN.

The collectible wireframe pony marks the first time Ford has issued a 3D-printed component as part of a gift directly to the customer — and it’s allowing additive manufacturing to establish a new-use case within the enterprise.

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Genesis Goes Electric with Electrified G80 Sedan’s Debut in Shanghai

Genesis is looking to make up some ground when it comes to electrification with the new Electrified G80.

The Genesis brand is determined to go from catch-up mode to leaving its competition behind. After an initial delay, it’s rolled out an assortment of new SUVs and its now getting into the battery-car game with the launch of the Electrified G80 at the Shanghai Auto Show.

The name of the Genesis Electrified G80 sedan might confuse some folks, making it sound like the automaker simply stuffed some batteries inside the conventional, gas-powered G8. However, the new model gets a major makeover to ensure it gets the range and other benefits offered by switching to battery power.

“Today is very special because it represents a variety of firsts for the Genesis brand, not only because this is Genesis’ very first appearance at Auto Shanghai, but also as the first time we are unveiling a new product outside of Korea,” said Jay Chang, Global head of the Genesis brand. “The Electrified G80, the perfect balance of athleticism and elegance, marks the beginning of our journey into the EV market, representing Genesis in the era of electrification.”

Filling in gaps in the product line-up

Genesis has been on a product roll in the last year or so, but an EV was a hole in the line-up — until now.

Genesis has been on a roll this past year, expanding its SUV line-up, updating initial sedans, including the gas-powered G80, and rolling out concepts like the all-electric Genesis X coupe revealed last month.

The one thing missing has been a production battery-electric vehicle, something the automaker has long signaled was in the works — though it also was known to be considering different options, including a crossover, a city car or, as it now turns out, a relatively conventional sedan.

There are some questions left to be answered, such as what platform the Electrified G80 rides on. Parent Hybrid Motor Group has developed the E-GMP architecture for use on products including the new Hyundai Ioniq 5 and Kia EV6.

It’s not clear whether it also underpins the Genesis Electrified G80. But the luxury member of the family has clearly found a way to squeeze in plenty of batteries, claiming the BEV sedan will deliver as much as 500 km, or 310 miles, range using the global NEDC standard. That likely would drop to something at or under 250 miles using the U.S. EPA test cycle.

Quicker charging

The interior of the new electric G80 sedan features a slew of technology.

The powertrain also aims to address concerns about charging times. The Electrified G80’s drive system can flip from 400 to 800 volts, allowing it to plug into the latest public quick chargers. Using the newest 350 kilowatt systems it can go from a 10% to 80% state-of-charge in just 22 minutes, Genesis claims.

The Vehicle-to-Load, or V2L, system also lets a motorist tap energy stored in the battery to power electric tools or, if need be, appliances should a home suffer a power outage.

Genesis isn’t ready to reveal specifics about the motor drive system, though it does note the all-wheel-drive system has a “Disconnector Actuator” that lets it switch from AWD to just rear-wheel drive. That suggests there is a single motor mounted, most likely, on the rear axle.

In Sport Mode, the automaker claims, the Electrified G80 will launch from 0 to 60 in 4.9 seconds.

Lots of unanswered questions

While the battery model looks much like the conventional G80, it features a sealed version of the familiar Genesis Crest Grille. That reduces aero drag since there’s no need to send air to cool and feed a gas engine under the hood. The charging port is hidden within the grille’s upper right corner.

Inside, the automaker switched to sustainable materials, including fabrics made of PET from recycled soft drink bottles.

Calling electrification “one of the key strategies” for the brand, Genesis said the Electrified G80 will be followed by “additional EV models.” It also said it will share more information about the BEV and plans to bring it to North America “later this year.”

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Rising Prices Make Affordability an Issue for Car Buyers

The prices on new and used vehicles continue to rise, nearing the point where buyers are being priced out of the market, CAR research reveals.

Affordability will become a significant issue for the automotive industry in the not-too-distant future, according to one of the industry’s top analysts.

“We’re starting to price people out of the market,” said Carla Bailo, president and chief executive officer of Center for Automotive Research in Ann Arbor, Michigan, said during a webinar on Modern Mobility this week. She said the sentiment applies to the cost of vehicles both new and used vehicles.

In 2019, the median household income in the United States was $68,703. But CAR’s research indicates that since 2000, the buyers of new vehicles have 1.5 to 1.9 times higher household incomes than the U.S. median income.

The price of used cars also is going up, Bailo noted. Climbing to $23,000 on average. The average price of a new vehicle exceeds $40,000, according to the U.S. Commerce Department.

Prices beget consumer changes

EV sales are currently the domain of higher-income buyers so if makers want sales to soar, prices must plummet, CAR’s Carla Bailo notes.

Bailo said vehicle sharing models, where do not purchase or lease the vehicle outright, but share the cost with other consumers clearly are going to become more important in the future and the industry will have to adjust to the new reality.

The issue is particularly acute around battery-electric vehicles. Until now, data shows that sales have been to consumers with higher income, she said. For the shift to electric vehicles to succeed EVs also must become more affordable, she said.

Industry changes driven by economics

Meanwhile, the industry also beginning to face inflationary pressure, a key industry executive acknowledged this week. The uptick in pricing is likely to be passed along to consumers, further raising new and used vehicle prices.

Carlos Tavares, the chief executive officer of Stellantis, which includes Fiat Chrysler North America, told the new company’s first shareholder meeting, the company is trying to mitigate the increase in prices but is facing higher material prices. The price of steel, for example, has climbed along with other raw material used to build new vehicles.

Adding to the affordability problem is the fact that due to the pandemic material prices have risen as well.

In addition, the shortage of semiconductors, which has forced automakers to curb production for months, is not likely to end in the second half of 2021 as some executives have predicted, Tavares said.

Statistics showing increases

Earlier this week, the U.S. Bureau of Labor Statistics reported consumer prices rose in March for the fourth month in a row and the pace of inflation hit the highest level in two and a half years, underscoring new pressures emerging on the economy as the U.S. recovers from the coronavirus pandemic.

The consumer price index jumped 0.6% last month, according to the Bureau. The gasoline index continued to increase, rising 9.1% in March and accounting for nearly half of the seasonally adjusted increase in all items index. The natural gas index also rose, contributing to a 5% increase in the energy index last month, the Bureau reported.

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Dominos, Nuro Team Up to Test Driverless Delivery Vehicles

Domino’s and Silicon Valley startup Nuro are partnering to use the self-driving R2 robot to deliver pizzas in Houston.

The development of Autonomous Vehicle (AV) technology can sometimes be as easy as pie, a pizza pie that is.

Ann Arbor, Michigan-based pizza chain Domino’s and autonomous vehicle developer Nuro Monday unveiled a new self-driving pizza delivery vehicle. The two companies will be testing in a Houston neighborhood.

The way it works is that select customers who place a prepaid website order from the participating Domino’s store can opt to have their order delivered by R2, the nickname for the driverless vehicle, which got approval to drive on roads in California in February 2020 — first vehicle to get that approval in the U.S.

These select customers receive text alerts updating them on R2’s location and provide them with a unique PIN to retrieve their order once the vehicle arrives at their home. Customers may also track the vehicle via GPS on their order confirmation page. Once R2 arrives, customers will be prompted to enter their PIN on the robot’s touchscreen. R2’s doors will then open upward, revealing the customer’s hot Domino’s order.

Pizza delivery explores future of AVs

Domino’s and Nuro are launching autonomous pizza delivery in Houston, beginning this week.

“We’re excited to continue innovating the delivery experience for Domino’s customers by testing autonomous delivery with Nuro in Houston,” said Dennis Maloney, Domino’s senior vice president and chief innovation officer.

“There is still so much for our brand to learn about the autonomous delivery space. This program will allow us to better understand how customers respond to the deliveries, how they interact with the robot and how it affects store operations.”

Domino’s spokeswoman Dani Bulger said this system will not eliminate Domino’s need for delivery drivers, as this is a test intended to keep us ahead in the world of technology.

“We’ve introduced many innovations over the years, which have changed the roles of some jobs, but employment has continued to grow,” Bulger said. “We believe autonomous vehicles will play a role in our overall delivery strategy, alongside our delivery drivers, as we continue to provide the best delivery experience possible to our customers. We don’t use third-party delivery aggregators.”

This isn’t Domino’s maiden voyage with autonomous delivery vehicles. In 2017, the pizza maker teamed with Ford on a similar project in Ann Arbor. The test program ran six weeks and used driverless Ford Fusion sedans converted for specially for the project. Each vehicle is equipped with a heated compartment that can carry up to four pizzas and five side dishes.

The Niro R2 is designed to tackle the “last mile” deliveries, like groceries.

Much like the Nuro-Domino’s collaboration, customers punched in PIN to gain access to their order. There actually was a person behind the wheel of the prototype delivery vehicles — a Ford engineer monitoring the operation of the test cars. But the windows of the vehicles will be blacked out and there was no direct interaction with customers.

Size matters

The Silicon Valley startup rolled out its first iteration of R2 last fall. It’s specifically designed for “last mile” deliveries. To that end, the R2 is small. And that’s for a specific reason. Narrow vehicles allow for better passive and dynamic safety. This could help prevent pedestrian fatalities on roads.

Since Nuro vehicles only carry goods, the company can turn safety innovation inside out, shifting its focus to protecting those outside the vehicle.

The R2 features 360-degree cameras, as well as Lidar, short and long-range radar, and ultrasonic sensors. These techs combine that advanced hardware with a robust autonomy stack that includes mapping, localization, perception, and prediction. The result is a representation of the road without any blind spots.

Ford and Domino’s partnered in a test program to deliver pizzas using autonomous vehicles.

Intelligent production

The R2 is built using the principles of “Intelligent Production.” The company uses basic components when they make sense and crafts custom parts when needed. That allows Nuro to build the best system without being limited by the constraints of existing vehicles.

This approach allows Nuro to deploy and iterate quickly to create safe autonomous solutions as quickly as possible.

“Nuro’s mission is to better everyday life through robotics. Now, for the first time, we’re launching real world, autonomous deliveries with R2 and Domino’s,” said Dave Ferguson, Nuro co-founder and president. “We’re excited to introduce our autonomous delivery robots to a select set of Domino’s customers in Houston. We can’t wait to see what they think.”

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Krafcik Leaves Waymo After Five Years as CEO

Waymo CEO John Krafcik is way gone, announcing his departure and the company’s plans to move the current COO and CTO into the role of co-CEO.

Add “former” to the title of Waymo CEO John Krafcik, who announced today he’s left the company.

The former Hyundai Motor America chief spent five years heading up the autonomous vehicle subsidiary of Google, which, according to his farewell on LinkedIn, “was called ‘Chauffeur’ internally.”

Tekedra Mawakana and Dmitri Dolgov, of whom Krafcik said “having seen their brilliance, vision, and commitment in play for years — I assure you they are very well suited for this,” take over as co-CEOs of the Mountain View, Calif.-based AI-focused company. As is often the case with senior executives, Krafcik will stay on in an advisory capacity.

“So now, with the fully autonomous Waymo One ride-hailing service open to all in our launch area of Metro Phoenix, and with the fifth generation of the Waymo Driver being prepared for deployment in ride-hailing and goods delivery, it’s a wonderful opportunity for me to pass the baton to Tekedra and Dmitri as Waymo’s co-CEOs,” he wrote.

Next steps

Waymo named former COO Tekedra Mawakana as its new co-CEO to replace Krafcik.

Krafcik didn’t offer many details what the future holds, although it could be that he’s uncertain himself. He said he and his wife, Leila, will take a “coupbatical,” which he described as “a refresh period where we look forward to reconnecting with old friends & family, and discovering new parts of the world.

“After that, we’ve got a few ideas for focus and contribution that we’ll flesh out together and share when the time is right. We’ve already relocated to Austin, Texas, and we look forward to seeing some of you there, or on our travels.”

Krafcik once headed up Hyundai’s U.S. operations, helping lead the brand through an image renaissance and a period of rapid growth. He even earned the “Automotive Executive of the Year” in 2013. However, his run there ended in late 2013 after the South Korean automaker declined to renew his contract — despite the accolade.

However, he quickly landed on his feet, taking over as CEO of TrueCar just as the automotive sales and data website was readying to go public. His tenure there was short, however, as he moved on to Waymo, then-Google’s self-driving car project, just a little more than a year later in September 2015.

Dynamic duo

Waymo CTO Dmitri Dolgov joins Mawakana as co-CEO with Krafcik’s departure.

As for the company, Mawakana and Dolgov now step into new roles. Previously the COO and CTO respectively, they are described as having “complementary skill sets and experiences.” Due to the nature of their roles, they’re already accustomed to working together.

Dolgov, who started in autonomy as part of Stanford’s DARPA Urban Challenge team, joined the company in 2009, when it was still referred to as Google’s self-driving car project. Over time, his influence and responsibility grew. He became CTO late in 2016.

Mawakana, joined Waymo as a policy lead. Prior to joining the company in 2017, she led global policy teams at eBay, AOL, Startec and Yahoo, after beginning her career as Washington, D.C.-based law firm Steptoe & Johnson LLP.

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GM Increasing Ad Spend in Black-Owned Media by 400%

GM announced it will increase its ad budget for Black-owned media by 400% between now and 2023..

Facing charges of “systemic racism,” General Motors Wednesday evening announced a 400% increase in ad spending in Black-owned media by 2023.

The move comes just days after a group of seven Black-owned media officials took out an ad in the Sunday Detroit Free Press to demand an increase in spending to promote “economic inclusion.” The group took direct aim at GM CEO Mary Barra suggesting she was racist and demanding her resignation if she didn’t respond.

Following the publication of the advertisement, GM agreed to meet with the seven media moguls. But the automaker called off the event, which was to be conducted as an online Zoom meeting, late Wednesday. Instead, the automaker said it would hold “a series of meetings … as soon as possible” with a larger mix of Black-owned media publishers and other executives.

GM expanding meeting invite list

GM’s top marketing executive Deborah Wahl postponed a meeting with seven Black-owned media execs, and plans to reschedule it as a series of smaller “conversations” with even more leaders.

“To ensure that our conversations are both substantive and constructive, we are going to postpone tomorrow’s group meeting and reschedule it into a series of smaller conversations that take place over the next few weeks,” GM global Chief Marketing Officer Deborah Wahl wrote in an e-mail sent to the executives. “We also intend to expand the dialogue to invite our existing Black-owned media partners currently in the GM portfolio.”

The issue of spending to support minority media, in general, has become a hot-button issue. In light of the Black Lives Matter movement and a broader focus on the African-American community, there’s been a particular focus on Black-owned media.

According to the seven executives who signed the Sunday ad, GM currently devotes just 0.5% of its roughly $2.3 billion annual ad spend to black publications and other media. The automaker disputed that figure, claiming the current figure is closer to 2%, though spokesman Pat Morrissey said GM management agreed an increase is necessary.

The signatories of the Sunday ad — including Weather Channel owner Byron Allen; rapper, actor and media mogul Ice Cube; and Junior Bridgeman, the owner of Ebony Media — were set to demand that GM devote a minimum $200 million annually to Black-owned media, with the figure increasing 5% annually during the next 10 years.

Automaker’s spending plan

Byron Allen, head of the Allen Media Group, which owns The Weather Channel, said GM was trying to “divide” Black-owned media executives.

Under the plan GM announced Wednesday, it will grow spending from 2% to 8% of its total ad budget by the end of 2023. That would boost the figures from about $45 million to roughly $180 million over that period.

“Mary Barra has the opportunity to be on the right side of history,” Allen said during a conversation with TheDetroitBureau.com midday Wednesday. He acknowledged his group would try to leverage any agreement with GM to win similar concessions from not only rival automakers but corporate America in general.

“Every corporation in America will be held accountable if they don’t do business with Black media in a respectable way,” he said.

Hours later, when the original meeting with the seven media execs was canceled he expressed surprise and anger. “What they’re trying to do is divide and conquer,” Allen said by phone. “They should be meeting with us.”

The decision to hold multiple meetings with a broader cross-section of the Black media community was well received by others, however.

Black-owned media response

Benjamin Chavis, CEO and president of the National Newspaper Publishers Association, a trade group for Black media, also wanted to meet with Barra.

Benjamin Chavis, CEO and president of the National Newspaper Publishers Association, a trade group for Black media, said he also wanted to meet with GM Chairman and Chief Executive Barra and express his belief that it “and other corporations need to increase their advertising with Black-owned media.”

Chavis was more upbeat on how the automaker and its CEO had been addressing the issue of systemic racism than the group sponsoring the Sunday ad. He said the carmaker has been “taking steps to deal with systemic racism — but it doesn’t happen overnight, or in one year.”

Barra became the first female automotive CEO in January 2014. She has repeatedly promised to make GM “the most inclusive company in the world.” Just last week it appointed to its board of directors former Hewlett Packard CEO Meg Whitman and Mark Tatum, the deputy commissioner and COO of the National Basketball Association. The GM board now is the first of any major corporation with a majority of female directors.

After the death of George Floyd in police custody last May, Barra wrote a letter to employees saying that she was “impatient and disgusted” by the events and stressed the need to “individually and collectively” act. And on June 19 — known as Juneteenth, the commemoration of the emancipation of enslaved people in the United States — GM asked employees to observe 8 minutes and 46 seconds of silence, the amount of time former Minneapolis police officer Derek Chauvin is recorded as having his knee on George Floyd’s neck during his fatal arrest, as a sign of solidarity with the black community.

Rapper and media mogul Ice Cube was one of the seven signatories on the ad criticizing GM CEO Mary Barra.

Newspaper ad shines light on issue

But, in the Sunday newspaper ads, Allen and other Black-owned media execs were far less upbeat about such moves. “You stand on stage, after the death of George Floyd, saying, ‘Black Lives Matter,’ when you have refused to acknowledge us,” the ad says of Barra. “The very definition of systemic racism is when you are ignored, excluded and you don’t have true economic inclusion.”

In a conversation with TheDetroitBureau.com, Allen said corporate America needs to recognize and support Black-owned media which has been struggling in recent years. Ebony, arguably the best-known publication in its field, was purchased out of bankruptcy by former NBA star Bridgeman last year.

Complicating matters has been the shift from traditional — largely print — media to online publishing. Companies like GM often have cut back direct ad buys with media outlets, in general. Instead, they steer a large share of spending to digital ad services such as Google AdSense. As a result, said a senior Detroit ad exec on background, they’re often able to reach Black consumers without actually working with black-owned publications.

Hyundai Joins Growing Push for Usage-Based Insurance

Hyundai is offering more than just a new line-up of sport-utility vehicles now, introducing its new usage-based insurance program.

Hyundai is the latest automaker to let its buyers switch to insurance coverage based on both how much they use their vehicles and how well they drive.

So-called “usage-based” insurance is already offered by several other manufacturers, including Ford Motor Co., as well as some of the country’s largest insurance companies like Nationwide and Progressive. It has become easier to track vehicle usage thanks to onboard connected car technology and some experts believe that may lead to a switch in the way highway and fuel taxes are levied, as well.

“As demand for more transparent auto insurance pricing grows, usage-based insurance is a powerful way for Hyundai drivers to have greater control over their insurance costs,” said Manish Mehrotra, the executive director of Digital Business Planning and Connected Operations, Hyundai Motor North America. “Our owners expect this kind of technology and want to pay the right amount. No one wants to pay more than they actually should.”

Capturing a Snapshot of driver behavior

Hyundai is offering its insurance program through its Blue Link service.

The first pay-as-you-drive insurance program, Progressive’s Snapshot, was introduced in the mid-1990s. It focused on tracking driver behavior, rewarding motorists who accelerated and braked more cautiously with reduced rates. Aggressive drivers faced the prospect of being penalized.

Early on, insurers relied on data collected using a vehicle’s OBDII sensor, the data periodically uploaded to the company for analysis.

Hyundai’s approach relies on its Blue Link Connected car technology and, when a vehicle is equipped with a two-way telecommunications system, driving data can be directly uploaded in real time through the Verisk Data Exchange. The system allows driving data to be analyzed and rated. It allows an insurer to adjust rates to reflect how much of a risk the driver poses.

Numerous factors impact rates

The factors Verisk looks at include: “smooth driving, speed responsibility, driving time of day, consistent driving and time behind the wheel,” Hyundai noted in a press release.

The new insurance program uses a score-based system to establish the rates.

Hyundai owners who sign up for the program can keep an eye on how well they’re doing through the automaker’s Blue Link app. It provides an individual Driving Score ranging from 0 to 100, the higher the number the better. It also offers tips on how to improve their ranking.

“For example, a driver could improve their score by braking smoothly, less late night driving and accelerating gently,” said Hyundai.

More and more motorists opt in

Drivers must opt in to the program to allow their data to be tracked. Verisk claims to have already collected information on 240 billion miles of driving data.

“The Verisk Data Exchange was built to make usage-based insurance easier and more accessible,” said Karthik Balakrishnan, senior vice president and general manager of Verisk’s telematics business. “Hyundai shares this vision and together, we look forward to this new collaboration and its many benefits for consumers as well as auto insurers.”

Hyundai joins a growing list of manufacturers who offer usage-based insurance. Ford last December announced teaming up with insurers including Allstate, Liberty Mutual and State Farm on a similar program. As with Hyundai, the automaker uses built-in telematics technology to gather information on driving behavior and usage.

For owners enrolled in the program, they can get a history of their driving score.

Motorists can directly sign up with insurers like Progressive and Nationwide who tied into a vehicle’s OBDII sensor to collect data.

Privacy concerns

A survey released by Nationwide last December showed growing support for such programs, the company reporting that 35% of new auto business is usage-based. It said it expects that to reach 70% or more over the next five years.

But the Nationwide study also found a majority of those surveyed expressing at least some concerns about the potential impact on privacy.

There are studies suggesting that usage-based programs help reduce the likelihood of a crash by retail vehicle owners. A recent study by Willis Towers Watson found that using telematics to monitor the behavior of commercial vehicle drivers can reduce crash rate by as much as 80%.

An alternative to fuel taxes

With most vehicles expected to come equipped with two-way telematics in the years ahead, experts are studying other opportunities. The technology could provide an alternative to today’s federal and state highway fuel tax system which is based on per-gallon fees. California and several other states have explored the idea of charging a flat, per-mile fee, instead.

That approach could come into play in the years ahead as more and more electric vehicles take to the road since they currently do not directly contribute to highway funding.

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Auto Industry Could Take on Water Due to Suez Canal Crisis

The Ever Green ran aground in the Suez Canal March 23, blocking traffic and about $9.6 billion in goods a day. (Photo credit: Suez Canal Authority)

The grounding of mega-carrier Ever Given in the Suez Canal this week has halted traffic through one of the world’s busiest waterways — and the crisis threatens to compound the problems facing an industry already struggling to overcome supply chain issues.

The Taiwanese-owned ship, capable of carrying up to 20,000 individual cargo containers, ran aground March 23 and shipping experts warn it could take “weeks” before it is freed up. The grounding brought traffic through the Suez Canal to a halt, including a number of car carriers as well as cargo vessels and tankers carrying auto parts and raw materials.

The crisis comes at a particularly bad time, automakers worldwide already facing shortages of critical semiconductors and petroleum-based materials like seat foam. That has led to numerous plant closures in recent weeks, a situation that the canal crisis could worsen, experts warn. In turn, consumers could be looking at both higher prices and shortages of some popular products if the canal can’t reopen soon.

A supply chain ready to snap

Suez Canal authorities are literally attempting to dig out the massive ship.

“It only takes a shortage of one part to mess things up,” said Kristen Dziczek, the vice president of research for the Center for Automotive Research, or CAR, in Ann Arbor, Michigan.

The Suez Canal, which opened in 1869, serves as a passage between the Mediterranean and Red seas. Since it cuts about 10 days off the time needed to sail around Africa’s southern tip, it is the major cargo route between Europe and the Far East.

Last year, the canal handled about 19,000 ships, or more than 51 a day, according to the Suez Canal Authority. Shipping journal Lloyd’s List puts the total daily value of traffic through the canal at $9.6 billion — $5.1 billion heading west, another $4.5 billion heading east.

Ships are already piling up on either side of the canal waiting for salvage crews to free the Ever Given. That includes two large auto transport vessels, the Morning Star and the Hoegh London, prepared to make the transit, according to European website Car Dealer. Several other car carriers were en route. The situation also has forced petro tankers and cargo carriers hauling auto parts to lay in wait.

An auto industry in crisis

There have been separate issues at the Port of Long Beach, above, and Los Angeles causing problems for automakers. (Photo credit: Port of Long Beach)

For the auto industry, the crisis is primarily impacting automakers and auto buyers in Europe and the Far East. A Kia spokesman said the firm is monitoring the situation and is “aware of delays.” Other manufacturers, including Mazda, BMW and Volkswagen, said they are in good shape for now, but whether that holds could depend upon the length of time it takes to free the Ever Given.

The global automotive supply chain is sensitive, particularly now, since it largely operates on a just-in-time basis, with factories maintaining as little inventory as possible. So, “Any slight delay in delivery could mean the production lines in Europe will grind to a halt,” said Tom Barnard, editor of Electrifying.com.

But the longer the crisis continues the greater the risk to other regions of the world. If European assembly lines are forced to close, it could lead to shortages of European vehicles at U.S. dealerships. And American assembly lines could begin to face shortages of European-made parts and components.

Bad timing

More shutdowns could be on the plan if authorities are unable to refloat the Ever Given.

Ever Given’s grounding couldn’t have come at a worse time for an industry still struggling to recover from the COVID pandemic. Plants around the world were forced to close at various times. Dealer inventories in the U.S. are running about 1 million vehicles lower than normal for this time of year, according to J.D. Power.

Efforts to rebuild those inventories had already hit a series of speedbumps, including shortages of the semiconductor circuits now used in every modern automobile. Virtually every manufacturer has now been hit. Ford and General Motors are among the manufacturers who have had to idle plants or slow production lines in recent weks.

Making matters worse, petroleum-based materials, such as seating foam, have also gone into short supply. And, if that’s not enough, there have been pandemic-related problems at some of the country’s biggest ports, including those in Los Angeles and Long Beach, California, forcing further delays in the delivery of vehicles, as well as auto parts and components.

Salvage effort could take weeks

Efforts to free the Ever Given have so far failed and “We can’t exclude it might take weeks, depending on the situation,” Peter Berdowski, CEO of Boskali, the Netherlands-based company leading salvage efforts, told Dutch television, according to Reuters.

The longer it takes to get the mega-carrier afloat the greater the risk of serious problems for the auto industry worldwide.