This Week in the News : Regulators, Cancellations and Trump in the Global Automotive Scene

electric vehicle

Electric cars might save the world one day. However, this week, they were in the news for an entirely different reason. Also, a US regulator questions the vehicle control modules employed by several automotive manufacturers and finally, two prominent Japanese automakers bow to the POTUS’s diktat to ‘make in America’. Details follow –

63,000 people cancel Tesla Model 3 bookings. Elon Musk calls it ‘routine’

At Tesla’s quarterly earnings call on Wednesday, the company’s CEO Elon Musk informed that over 63,000 people have cancelled their Model 3 bookings in the last year. Terming these cancellations as a mere ‘drop in the bucket’, the inspirational tech leader noted that the company could easily drive up the electric car’s reservation line with a bit of effort, however he would not call it a prudent move at this juncture. Presently, the company averages a staggering 18,000 new Model 3 reservations per day, with the overall number sitting pretty at about 455,000 reservations. Looks like electric cars have a future after all!

DHS wants to avoid a WannaCry sequel, for cars. Warns auto makers about faulty tech

The always vigilant Department of Homeland Security (DHS) backed cybersecurity response team has warned a number of automobile makers about faulty vehicle control modules, the inclusion of which could render a particular vehicle susceptible to denial-of-service attacks and other such complicated hacks. The automakers are asked to refer to recent research that has bought this problem to the fore. Again, this vulnerability points to the obvious point of concern – automotive technologies may innovate and advance at a breakneck speed, however, is all of it safe for human consumption?

Global M2M Homeland Security market 2017-2021_CP_TNRTN-8478Trump’s call has been answered by Toyota and Mazda

The world’s most powerful man has been asking for it and looks like he is finally getting his wish. US president Donald Trump has been a staunch advocate for foreign automakers building their vehicles in the US, with American labor force. In a move that can be seen as an appeasement for the same, Japanese auto giants Toyota and Mazda have decided to construct a USD 1.6 Billion worth vehicle assembly plant in the US that could potentially create 4000 jobs. This announcement came in today and might encourage other automakers to follow a similar, compliant path. Meanwhile, the Toyota- Mazda’s (50-50 JV) new plant will be operational by 2021.

News that matters. Watch this space for more weekly roundup from various global markets and specialist business verticals. Technavio is a renowned market research company that caters to a global audience of enterprising businesses and can be readily reached here.