Automotive Archives - USC Consulting Group

Has the trend passed about caring for the environment and preventing harmful emissions?

Despite the fact that GMC is touting its new, 2024 Hummer EV SUV, starting at a cool $80,000 with a 329 range on a full battery charge, Reuters is reporting that the demand for electric vehicles isn’t keeping up with expectations. In October 2023, Honda and General Motors announced they were ending a $5 billion partnership to develop lower-cost EVs. GM says it’s to “enhance the profitability of our EV portfolio and adjust to slowing near-term growth.” Ford, too, just announced it pushed back its EV production timeline because of slower customer demand. Investors are taking notice. Automakers are thrown for a loop.

It’s not for lack of desire for electric vehicles by consumers, auto manufacturers and climate activists alike. Reducing the sting at the gas pump while helping the environment? Bring that on. Indeed, Cox Automotive Report tells us EV sales exceeded 300,000 units in the U.S. in Q3 2023. That’s record numbers.

So, what’s going on?

There are vexing factors swirling around this marketplace, colliding into a miasma of toil and trouble for auto manufacturers.

High interest rates = slowing demand

The current demand slowdown reflects the uncertain economy and the looming shadow of high interest rates (Will they go higher? Will they come down?) driving up the price of the already-expensive EVs. It’s a one-two punch. For most people, the decision to buy a car depends on the affordability of the monthly payment combined with other factors affecting their household budget. The vast majority of us are not rushing out to spend $80K on that Hummer. Maybe a more affordable model? Sure, but with sky-high interest rates driving up the monthly payment of already-expensive vehicles at the same time a pound of ground beef costs upwards of $8, people are taking a wait-and-see attitude. Maybe a gas-fueled car is a better bet right now.

Raw materials shortages for batteries = supply chain issues

As The Buzz EV News recently put it so succinctly, the raw materials that power EV batteries, namely lithium and cobalt, “aren’t exactly littering the landscape.” This, coupled with the fact that 90% of the supply chain for EV batteries runs through China, makes it difficult for U.S. auto manufacturers to realize efficient, profitable production. No one in the industry wants a repeat of the auto microchip shortage during the pandemic.

How is it all affecting auto manufacturers, and what can be done about it? At USCCG, we have a half century of experience dealing with the effects of supply, demand and the economy on many different industries. We work across the entire battery supply chain from mining to metals to battery manufacturing plants. Here’s how we see the issues playing out currently.

Auto manufacturers are doing a 180 (for now), so…

Based on the changing demand, automotive manufacturers are pulling back from EV investment right now and putting it back into traditional auto manufacturing. Even though the industry’s goal is still moving towards a 2030-2035 conversion to EVs, consumers are still buying gas-powered vehicles. Automakers need to maintain production to satisfy the demand.

…Demand and schedule planning is crucial, but…

Automakers’ backlogs need help — they have the orders and demand for gas vehicles, but are struggling to fulfill this demand and fill those orders. At USC, we happen to be the specialists in wrangling schedules, planning for demand when those sands keep shifting, and adding horsepower to teams just when they need it the most. It’s an all-hands-on-deck situation for auto makers, except…

…The skilled labor shortage is real

The new UAW contracts are driving labor costs throughout the industry, even in non-union facilities. Couple that with the ever-shrinking skilled workforce, and it puts auto makers behind the eight ball just when they need to find and retain quality, reliable employees. At USC, we’ve been focusing on this issue, helping employers train their people on best practices and optimal processes. It’s crucial now, like never before.

EV issues aren’t going away. It’s time to reshore now

Yes, the demand is slowing. For now. But auto makers are still on track for conversion to electric vehicles, and the public still wants them. But these battery and supply chain issues are still plaguing the industry.

A few facts entering into this mix: The current Inflation Reduction Act included billions of dollars in government loans to fund EV battery plants in the U.S., and also included a $7,500 tax credit to people who buy U.S.-made EVs. It also allocated $7.5 billion to fund a network of charging stations around the U.S. (That, in itself is exciting for logistics nerds like us.)

Gov. Brian Kemp of Georgia is taking advantage of this trend, creating a push for EV jobs, major manufacturers including Hyundai and Kia located in the state, and pledges to make Georgia the “electric mobility capital” of the country.

TechCrunch+ says the U.S. is in an EV battery factory construction “boom” as a result of these initiatives. In 2019, there were just two battery factories here in the U.S. Today, 30 are either planned or under construction.

What does it all mean? It means auto manufacturers need to meet current demand while keeping an eye on the future. USC can help you do that. Contact us today.

Technology is crucial in most industries to advance safety and efficiency. The automotive sector is an excellent example of how advanced technology transforms products and, thus, the world. Big data and analytics have become an integral part of it all. So, how exactly has the automotive industry taken advantage of analytics, especially with maintenance and predictive diagnostics? How can using it benefit manufacturers? Let’s find out…

How Did Big Data Analytics Emerge in the Automotive Industry?

Big data is a relatively new concept, but its modern adaptations originated in the 1960s. For example, in 1964, IBM introduced the System/360, offering processors 100 times more potent than their predecessors. This technology is primitive in retrospect, but it was an essential first step for data processing. In the 1970s and 1980s, tech companies improved this technology to include the automotive industry.

By the 1990s, automotive technology producers began using big data analytics for vehicles. For example, global positioning systems (GPS) became more prominent this decade. These devices allowed consumers to use navigation technology well-known in the U.S. military. Many luxury cars came with this feature installed to entice consumers.

While GPS devices are still prominent, big data has improved cars enough to where they can be self-reliant. Soon, automakers will remove GPS devices once autonomous vehicles become widespread. These vehicles know where they’re going and do not need a GPS for navigation.

What Role Does Big Data Analytics Play in Automotive Maintenance and Predictive Diagnostics?

The last two decades have seen incredible growth for big data and its role in the automotive industry. Automotive professionals have used advanced technology for maintenance and predictive diagnostics. Using data helps technicians know precisely what the problem is and the necessary methods for mitigation.

Automakers primarily take advantage of big data analytics through embedded sensors in their vehicles. These devices allow the manufacturers to track cars anywhere in the world and detect where the problems lie. With this information, the automaker can notify the consumer of issues, find trends and develop solutions for widespread problems. Then, they know what issues to correct for future models of the same vehicle.

What software and technologies do automotive professionals use? These examples demonstrate how industry experts use big data for predictive maintenance and predictive diagnostics.

Machine Learning

Machine learning (ML) has become a critical part of the automotive industry because it solves complex problems and creates algorithms. For auto manufacturers, ML has helped technicians predict equipment failures.

For example, automakers use ML to analyze historical data from their vehicles. Their computers use sensor data to detect trends and see what abnormalities led to the issues. Therefore, manufacturers can catch what problems may arise when they see a particular pattern occurring in a vehicle.

Another use for ML is creating maintenance schedules for vehicles. Historical data indicate when owners of a particular model should bring their cars for routine maintenance. The algorithm is intelligent enough to combine the data with driver performance to alert when service is necessary for the vehicle.

Telematics

Telematics is one of the earliest examples of big data in the automotive industry, and it’s become vital for car owners and fleet managers worldwide. Research shows about 80% of Class 8 trucks in North America use telematics for safety and efficiency.

Telematics is essential for maintenance because it monitors vehicle health. These devices often detect problems earlier than the operator can, allowing companies to act swiftly on their machines. Early detection and mitigation save money and improve safety by not putting drivers in harmful situations.

What Are the Benefits of Big Data in Automobiles?

Big data analytics is a win-win for manufacturers and consumers. All parties can have peace of mind knowing their machines are safe and efficient. The following three benefits demonstrate how automotive professionals benefit from big data.

Improving Safety

Cars are essential for daily travel, but they can be dangerous. The National Highway Traffic and Safety Administration (NHTSA) says nearly 43,000 people died in motor vehicle traffic crashes in 2022. Reasons for accidents vary, but they can originate from fixable mechanical failures.

Big data analytics decreases the likelihood of these failures by scheduling preventive maintenance and alerting when serious problems arise. Users can know if their brakes, steering wheel or battery needs attention before a catastrophe happens.

Decreasing Downtime

Big data analytics has become invaluable for fleet managers worldwide. The average fleet manager may have 10, 100 or 1,000 vehicles under their wing, making it difficult to track all of them simultaneously. However, advanced data allows them to monitor all the cars and detect trends.

Warning systems send information to the fleet manager, allowing them to act immediately. The modern supply chain demands maximum productivity from fleets, so taking advantage of big data analytics is essential.

Supporting Sustainability

Sustainability has become a significant focus for auto manufacturers. The push for more renewable energy and less waste has led to innovation across the industry. How are they achieving sustainability standards? Big data analytics is helping automakers care for the environment.

Using big data analytics extends the life of cars and reduces the need for customers to consume resources by purchasing cars. Instead, they can keep the same vehicle longer and spend less time at the mechanic.

When cars reach their end of life, many head to the scrapyard. While recycling has improved, parts and pieces still go to waste. For example, the European Union scrapped 5.4 million passenger cars in 2020. Installing telematics devices and using big data would extend their time on the road and reduce waste.

Big Data Analytics in the Automotive Industry

Automotive technology has come a long way and only improves yearly. Modern software allows auto manufacturers to utilize big data analytics with maintenance and predictive diagnostics. With this technology, manufacturers lower the cost for themselves and consumers and make their processes more efficient.

*This article is written by Jack Shaw. Jack is a seasoned automotive industry writer with over six years of experience. As the senior writer for Modded, he combines his passion for vehicles, manufacturing and technology with his expertise to deliver engaging content that resonates with enthusiasts worldwide.

Tag Archives: Automotive