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Chip shortage to cost Daimler Truck billions in revenues – Automobilwoche

Source: Reuters

BERLIN, Nov 28 (Reuters) – Daimler Truck Chief Martin Daum expects the global chip shortage to hit revenues by several billion euros this year and sees the problem continuing into next year, Automobilwoche reported on Sunday.

The world’s largest commercial vehicle maker, to be spun off from Daimler on Dec. 10, has outlined cost-cutting measure aimed at boosting profit margins as it struggles with chip shortages hurting the entire sector. L8N2S267U

Daum said there would be a significant financial hit.

“It is a huge sum,” Daum told Automobilwoche, saying the company would sell a “mid five-digit number” fewer vehicles than it could have.

With an average price of 100,000 euros ($113,170) per vehicle, this means several billion euros in lost revenues, reported Automobilwoche.

“We also have many vehicles sitting in the factory where just one part is missing. These deliveries are a priority because they are already sold,” said Daum.

He also told Automobilwoche that supply problems are likely to continue in 2022.

($1 = 0.8836 euros)

Reporting by Madeline Chambers, Editing by Louise Heavens

Our Standards: The Thomson Reuters Trust Principles.

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Preparing for the Surge: Meeting the MCS Requirements of Electric Trucks

John Granby, Director of eTruck & Van, EO Charging and Erik Kanerva, Sales Director at Kempower

Auto electrification is moving at a rapid pace, with electric vehicles (EVs) going from a passion project for early technology adopters to the mainstream – especially when you consider the need to electrify consumer and commercial vehicles ahead of the government’s 2035 Zero Emission Vehicle mandate.

Electrification is also starting to play a vital role in public policy and commercial plans, leading to vehicle availability and a variety of improvements and increasing interest among commercial fleets’ prospective customers. As a result, all of the main car and van manufacturers have a respectable EV offering, and the eBus industry is well on its way to proposing a similarly credible offering for citizens.

Heavy-duty vehicle electrification has progressed slowly, but the pace has picked up over the last year, with several of the major truck manufacturers testing completely electric heavy trucks that are now near-ready to enter the general market.

This is a critical shift in the move towards net zero, given that heavy commercial vehicles account for around 25% of CO2 emissions from road transport emissions in the EU and approximately 6% of the region’s overall emissions. It’s a similar situation in the US, where medium and heavy-duty trucks account for around 29% of total road transport emissions or approximately 7% of the country’s total but make up fewer than 5% of all vehicles on the road.

Having clear goals and objectives in place for fleet electrification will be vital to ensuring the transport sector is on track. For example, Scania’s goal is that 50% of all vehicles it sells annually by 2030 will be electric. Despite Scania being the slowest into the market with battery electric vehicles, other vehicle manufacturers are following the same target, with Volvo Trucks setting itself a target for 50% fully electric vehicles by 2030 and the same with Renault, for example.

Meeting this ambitious goal will require the appropriate charging infrastructure in place so customers have the confidence to invest in the large-scale electrification of their fleets. That is one of the reasons why charging system manufacturer Kempower expects the commercial vehicle DC charging market in Europe and North America to have a 37% compound annual growth rate until 2030.

Trucks require substantial battery packs to provide a similar range as traditional engines, and having the right infrastructure in place to keep them regularly charged is certainly a key factor to consider when electrifying truck fleets. According to the European Automobile Manufacturers’ Association (ACEA), trucks will require up to 279,000 charging outlets by 2030, with 84% located in fleet hubs. By 2030, buses will require up to 56,000 charging outlets, with fleet hubs accounting for 92% of the total.

The Charging Interface Initiative (CharIN) is a global organisation that has been working on a standard for the rapid charging of trucks for several years. CharIN developed the Megawatt Charging System (MCS) concept, which serves as the foundation for the ISO and IEC standards which govern the design, installation, and operation of truck fast charging infrastructures.

The MCS is intended to standardise the quick delivery of enormous amounts of charging power to vehicles and provide stronger communication, which minimises downtime caused by unsuccessful charging events.

Customers who drive commercial vehicles follow particular driving habits. By taking advantage of the required break time from the hours-of-service restrictions governing their drivers, customers can travel further each day thanks to the increased charge rate that MCS offers. Better electrification of commercial cars is made possible by legislation that mandates that drivers take rest breaks. As a result, shorter charging durations to accommodate these breaks are beneficial.

The MCS will operate at up to 3,000A and 1,25 KV at its final development stage, delivering up to 3,75 MW of power when charging. With the backing of a significant segment of the industry, MCS is founded on an international consensus on technical standards. An internationally recognised standard is essential to promote harmonised solutions that reduce costs and boost interoperability without sacrificing safety and uptime.

Trucks on the highway are a key focus of the MCS, not only depot pricing. Large truck units operating long-haul routes and some smaller rigid trucks operating cross-border short-haul deliveries—such as logistics organisations operating deliveries between the United Kingdom and continental Europe—pay particular attention to this issue.

Most MCS charging occurs while drivers take breaks from their routes, but some depots may have a single MCS charger on site to do a flash charge if a truck needs to be turned around quickly. In order to balance this unit’s demand against other chargers on site, load management is crucial because it will require a power supply of at least 1 MW+.

Fleet operators should look to consider incorporating MCS into their whole charging ecosystem and solutions, regardless of whether they are thinking about how electrification will affect their fleet of vehicles on the road or how their depots will operate.

Adopting cutting-edge energy management technology solutions will enable effective fleet electrification, particularly at depots. Investing in effective load management technologies will be critical to maximising existing grid infrastructure capacity while decreasing the need for additional investments in generation or distribution capacity.

Investing in and deploying effective energy management technologies is the key to a smoother, more efficient shift for commercial fleet operators. They are critical in lowering energy expenses, both economically and environmentally.

Energy management solutions for charging electric fleets will also help maximise existing grid capacity, reducing the need to invest in new generation or distribution capacity. This will be an essential factor for fleet managers to consider as eTruck fleets expand and other commercial vehicle fleets, such as buses, increase demands on infrastructure.

With unprecedented energy and investment going into electrification, 2024 looks to be a pivotal year for picking up the momentum of progress around MCS in the logistics sector. If done right, it will create a shift of optimism in the market to accelerate the electrification of commercial fleets and promises to positively impact other sectors, such as marine and aviation, contributing significantly to reducing carbon emissions.

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The role and responsibility of ID verification in the automotive industry

Author: Terry Slattery, CEO at IDScan

Like many, the automotive industry is currently navigating through the complexities of digitalization and the escalating challenge of identity fraud. As the industry shifts towards online sales, remote vehicle rentals, and the launch of ride-sharing platforms, they must ask a crucial question: How can the authenticity of customer identities be correctly verified? 

This is a real issue that needs to be tackled, with an estimated 10% of digital inquiries for car transactions flagged for potential fraud risks. Such threats expose dealerships and rental services to significant financial losses and safety risks, underscoring the urgent need for effective identity verification measures. 

With traditional methods of identity checks proving to be increasingly outdated, propelling the industry towards innovative measures could be the solution to greater levels of security and efficiency in the industry. 

Why AI matters – The crucial role of digital ID verification

The threat of fake IDs and fraudulent activities within the automotive industry isn’t just about financial repercussions, it extends to the safety of employees and customers, where a failure in identity verification can lead to severe consequences. For example, just last year, a woman used a fake ID and a modified driver’s licence to scam a dealership into letting her acquire a new car worth over $42,000. This was not the first of her many fraudulent activities record, but it served as a wake-up call for the dealership to start taking more severe safety measures.

Implementing advanced digital ID verification systems could be the way to mitigate these risks, shifting from traditional, often manual, verification methods towards newer technologies. These systems harness AI to compare identification documents against vast databases of authenticated templates, analyzing every detail from the document’s physical characteristics to hidden security features. Infrared and ultraviolet light scanning can detect the latter, such as holograms and watermarks, and a comprehensive library of ID templates to ensure each document adheres to state or jurisdictional standards.

Furthermore, digital enhancements like 2D barcode checks and face match technology with anti-spoofing measures can validate identities more accurately. By incorporating DMV data verification, dealerships can cross-reference customer details with official records, providing a robust, multi-layered approach to mitigate identity fraud and streamline the customer verification process. This level of security ensures that only legitimate users can access services, from taking a test drive at a dealership to renting a vehicle remotely through an app. 

The benefits of digital ID verification

Perhaps the biggest advantage of adopting digital ID verification is that it drastically reduces the incidence of identity fraud, providing a robust mechanism to catch fake IDs with up to 95% accuracy. This capability is crucial in an industry where the stakes involve high-value assets like vehicles. By ensuring that only verified customers can access services such as test drives and loan applications, dealerships significantly minimize their exposure to financial and reputational risks. 

These measures also automate the customer onboarding process. What once took minutes or hours can now be completed in a matter of seconds. The integration of these solutions allows for the quick and accurate transfer of verified data, facilitating smoother loan applications and dealership operations. 

By adopting digital ID verification, the automotive industry not only strengthens its defence against fraud but also enjoys more efficient and reliable customer verification processes, leading to increased customer satisfaction and improved operational workflow. The mere presence of digital verification technology also serves as a deterrent to potential fraudsters, promoting a more secure dealership environment and ensuring compliance with Red Flags Rule laws, which in turn guarantees that businesses have a solid system in place to detect and act on warning signs of identity theft effectively. 

How to implement digital ID verification

A successful implementation of digital ID verification relies on the solution’s ability to blend with the dealership’s operational framework without disrupting the workflow, connecting smoothly with dealership management systems (DMS) and customer relationship management (CRM) systems. This ensures data flows effectively between systems, enhancing efficiency.

It’s also crucial to educate the staff within the automotive industry, by offering training on the new system’s technical aspects and its significance in fraud prevention and regulatory compliance. This understanding reinforces digital ID verification as essential for dealership security and customer trust, aligning with federal KYC and privacy standards.

Viewing the integration of digital ID verification as an ongoing process rather than a one-time setup allows for continuous improvement and adaptation. Regular system evaluations, soliciting user feedback, and staying updated with technological advancements are critical for refining the verification process and ensuring that every interaction—be it a car purchase, a rental, or a ride-share—begins with the assurance of verified identity.

As the challenges of fake IDs and identity theft continue to rise, so should the security measures within the automotive industry. This is why the adoption of digital ID verification technologies will play a huge role towards safer, and more efficient transactions. By embracing these advanced technologies and making the effort to implement them accordingly, the automotive industry can navigate the complexities of identity verification with increased confidence. 

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Car cannibalism: What it is and 3 tips to avoid it

Mark Barclay, My Motor World

Car cannibalism has been on the rise now for several years — but what exactly is it, and what are the risks? More importantly, how can you ensure that your vehicles are protected? The good news is that there are ways to protect your car from thieves, and here My Motor World share a few of the best.

What is car cannibalism?

Car cannibalism refers to the crime of stripping a car for its parts without stealing the whole vehicle (though it may also be stolen in some cases). A lot of the time, the parts that are stolen are those most commonly needed to repair a car after a minor crash, such as bumpers, grills, lights, and fenders, or any other high-demand parts that thieves can sell to make a profit. Other times, thieves may steal to order, meaning they target vehicles with specific desirable parts or expensive add-ons with resale value. Because of this, every kind of car from pricey vehicles to those popular with young drivers are at risk.

How to avoid car cannibalism

The best way to protect your car from thieves is to keep it out of sight. But even if you have been targeted, there are still ways you can deter a theft in progress or potentially recover your stolen parts afterwards.

Park in a safe area

Always park your car in a safe area, even when parking for short durations. For long stays, private car parks and garages are the safest as they are usually locked and have CCTV or other security measures in place.  However, if you don’t have access to one of these, then a well-lit area with lots of footfall may be enough of a deterrent. Since many of the parts being stolen are from the front of the vehicle, it could be useful to park facing a wall where possible to make the theft more difficult. Always ensure that your vehicle is locked and take your keys with you — not only is this safer, but many car insurance premiums won’t pay out if you haven’t properly secured your car.

Mark your parts

It’s unlikely you’ll ever recover your parts if they are stolen but marking them can make it easier for the police to identify, which means you potentially could get your stolen parts back. In some cases, marked parts can be a deterrent if the thief notices the marking, as they’ll be more reluctant to steal a part that can be traced. People buying the parts may also realise they have been stolen if they’re marked, and if so, they may be more likely to contact the police. 

Use technology

It’s worth putting a camera in your vehicle such as a dashcam if you haven’t already, and a tracker can help you locate your car in the event that it is stolen. If you park in a driveway or just outside your home, a video camera on your property may catch the thieves in the act and prove useful to the police investigation. A security light that goes on when it senses movement can even be enough of a deterrent, and both of these options may be cheaper than replacing the stolen parts.

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