Kevin Wobschall

“Dieselgate” is not over, and Technical Compliance is more important than ever as the recent USD 1.7 billion agreement in principle (Agreement) between the U.S. diesel engine manufacturer Cummins Inc. (Cummins) and the U.S. Department of Justice (DOJ) demonstrates. 📌 The Facts: On December 22, 2023, the DOJ announced an Agreement with Cummins according to which Cummins will pay a record $1.675 billion penalty to settle alleged violations of the U.S. Clean Air Act. According to the DOJ statement, the violations stem from the alleged installation of emissions defeat devices in 630,000 RAM pickup trucks, built from 2013 to 2019, that include parts and software to allegedly bypass or defeat emission sensors designed to ensure compliance with applicable emission limits. The DOJ concluded that Cummins also allegedly used emission control devices in another 330,000 RAMs from 2019 to 2023. The Cummins Agreement represents the largest civil penalty ever secured under the Clean Air Act and the second largest environmental penalty ever secured. By comparison, in 2017, Volkswagen AG paid a civil penalty of $1.5 billion on top of a criminal penalty of $2.8 billion in the US. 📈 The Significance: The Cummins Agreement demonstrates the ongoing importance of ensuring that all products comply with all critical laws and regulations, whether those laws and regulations are emissions related or not. We strongly advice that companies ensure such compliance by means of a robust and efficient Technical Compliance Management System (tCMS) that is tailored to the industry-, company-, and product-specific risks and needs. We are ready to support you. #TechnicalCompliance #tCMS #Dieselgate #ProductCompliance

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What few are thinking in the UAW, obviously, is a strike like this only pushes the BIG 3 more towards BEVs to reduce the impact of lose/lose demands like this. BEVs, which are heavily software-based and less complex to build, require new and substantially retooled factories manned by fewer workers. Estimates are that BEVs require 30% less labor to assemble than internal-combustion-engine vehicles, and the lower demand for labor or may be more depending on the level of automation that is dialed into the new production lines. Non-Union workers are seeing wage increases due to market driven conditions not forced demands. What do they say, don’t bite the hand that feeds you? BEVEverything, EV Consulting The Automotive Advisor Team BEVEverything EV Education #bev #ev International Union, UAW Patrick Anderson

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Huge margin changes in the Auto Industry and the future of their production. If you or any one needs assistance in Automotive labor please feel free to contact me or look us up at https://lnkd.in/gTtNnCrX. NUMBERS OF THE WEEK – THE BIG THREE AUTOMAKERS, UAW AND ELECTRIC VEHICLES (“EVs”): $80.0 BILLION: The UAW’s current contract demands, if accepted by Detroit’s Big Three automakers, will add approximately $80.0 billion to each of the Big Three’s labor expenses over the next four years. $65.00: The average hourly wage of a UAW Big Three auto worker (wages plus benefits) is approximately $65.00 per hour under the current contract. $150.00: The average hourly wage of a UAW Big Three auto worker (wages plus benefits) would approximate $150.00 per hour under the UAW’s proposed contract demands. $55.00: Non-union workers at foreign auto manufacturers operating in the U.S. earn approximately $55.00 per hour (wages plus benefits). $45.00: Non-union workers at Tesla operating in the U.S. earn approximately $45.00 per hour (wages plus benefits). 71.0%: In 1978, the Big Three U.S. automakers controlled 71.0% of the U.S. market share for automobiles and trucks. 47.0%: In 2008, the Big Three U.S. automakers controlled 47.0% of the U.S. market share for automobiles and trucks. 42.7%: In 2022, the Big Three U.S. automakers controlled 42.7% of the U.S. market share for automobiles and trucks. -$60,000: Ford Motor Co. lost approximately $60,000 (not a typo) on every electric vehicle it produced and sold during the first quarter of 2023 (Sources: Statista, Ford Motor Co., and The Wall Street Journal, 9.12.23).

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If you have spent anytime diagnosing electrical issues with a vehicles architecture, you will enjoy this article from SAE. As vehicles get intrinsically smarter, diagnosis will become obsolete. #automotiveindustry #automotivedesign #automotivefuture

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Grab a cup of coffee and join my Foley colleagues for a Society of Automotive Analysts webinar on automotive suppliers and their ongoing uncertainty and risks they face from automakers' EV programs. Click below to learn more and to register! #Webinar #Automotive #ElectricVehicles

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Graham Jarvis writes in TU-Automotive News: In October 2023 Autotech: Electrification in Detroit will also host a discussion on EV charging and infrastructure. It will specifically examine bans on the sales of new ICE powered vehicles due in 2035 given that there are moves in both the UK and the European Union to push back on these bans with the EU looking likely to allow ICE using carbon neutral fuels. However, not everyone was pleased to hear about UK Prime Minister Rishi Sunak’s decision to change the UK’s previously promised ICE ban from its 2030 target. Ford UK chair and managing director Lisa Brankin comments in a Ford Motor Company press release: “The auto industry is investing to meet that challenge, and this is the biggest industry transformation in over a century and the UK 2030 target is a vital catalyst to accelerate Ford into a cleaner future. Our business needs three things from the UK government: ambition, commitment, and consistency. A relaxation of 2030 would undermine all three.” However, both JLR (Jaguar Land Rover) and Stellantis say the government’s decision will not affect their future plans. #2030 #engines #automotive #climate #internalcombustionengine #sunak #primeminister #autoindustry #target #iceban #electricvehicles #batteryelectric #hydrocarbons #hydrogen #powerplants #greenfuels https://bit.ly/3SeTK9k

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Tariff Engineering is a wonderful tool to be used as a means of mitigating exposure to tariffs but it has to be applied judiciously and within the letter of the law. Of course, sometimes the law isn't so clearly defined but the final chapter in the Ford "chicken tax" saga is still a lesson to be learned. #tradecompliance #classification #imports #wheretradematters #enforcement

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Join us for our Society of Automotive Analysts webinar, "Supplier Risk from EV Delayed Program," on May 22 at 11:00 ET. Click below to learn more about the webinar and to sign up! #Automotive #ElectricVehicles #Webinar

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Join us for our Society of Automotive Analysts webinar, "Supplier Risk from EV Delayed Program," on May 22 at 11:00 ET. Click below to learn more about the webinar and to sign up! #Automotive #ElectricVehicles #Webinar

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AEB Required in the US by 2029 NHTSA finalized rules requiring advanced automatic braking systems to be standard on new cars by 2029. This safety standard is expected to significantly reduce rear-end and pedestrian crashes. This final rule applies to nearly all U.S. light vehicles. https://bit.ly/4aXIIM7 Are you in need of #drivingrobots or assistance with conducting these essential tests? Let's collaborate to ensure compliance and maximize safety on the roads. Reach out today for support! 🤖🔧 #ADAS #DrivingRobots #RoadSafety #AEB #DrivingTechnology #SafetyRegulations #TestAutomation

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The rationale for Needham analyst Chris Pierce’s enthusiasm for Rivian should serve as yet another wakeup call for Ford investors about the sorry state of their company’s EV business.   Ford’s electric Lightning pickups and the electric Mustangs the company proudly assembles in Mexico are piling up on dealers lots, forcing the company to slash prices and offer sweetheart financing deals. In another ominous sign, Pierce says there are an alarming more Lightnings available for resale than Rivian pickups, which could put more downward pressure on pricing.   Barron’s reported in April that resale prices on Ford Lightnings were already fast falling. Ford recently slashed the price on its 2023 Lightnings by $8,000, and the vehicles could face more pricing pressures if GM makes good on its promise to launch an electric pickup later this year with a better range than the Lightning.   Ford’s Lightning is essentially the company’s gas engine F-150 pickup with batteries and a hodge podge of technology slap dashed together from suppliers. Ford CEO Jim Farley admitted on a podcast the company doesn’t understand all the software code that propels its EVs, which is why the company opted to bring software development in house.   There are also serious issues with Ford’s gas engine business. The company has issued a recall of more than 870,000 of its bestselling F-150 pickup trucks because of a defective parking brake that could inadvertently activate while driving. The recall comes amid investigations into other Ford vehicles, including some SUVs with front doors that allegedly open while driving. Ford has issued more than 100 recalls in the past 19 months. Farley’s mandate when he was named CEO three years ago was to improve the company’s shoddy manufacturing but that doesn’t appear to be happening. The latest F-150 recalls involve vehicles manufactured between 2021-2023. Ford said dealers can replace the defective brake part “if needed,” or “install a PROTECTIVE TIE STRAP AND TAPE WRAP to prevent any future damage.” GM recently warned owners of its 2023 Chevy Traverse vehicles that some units may have a metal split in the passenger side rear wheelhouse inner sheet metal. To fix this condition, technicians are instructed to first inspect the rear inner wheelhouse, and if necessary, “APPLY A STRUCTURAL ADHESIVE TO A NEW PANEL AND INSTALL IT OVER THE SPLIT.” Such is the state of Ford and GM manufacturing – vehicles held together by ties and adhesive tape. https://lnkd.in/gi73Znkw https://lnkd.in/gnjZjpiZ #ford #gm #manufacturing #electrictrucks #electricvehicletechnology

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