Sustaining the Auto Industry

Sustaining-the-auto-industry

AutoMobility Roadmap Newsletter Sustaining the Auto Industry November 8, 2023 November 8, 2023 Since the Second World War, every decade of American automotive culture has had a defining characteristic. The 1950s were defined by chrome and fins, the 60s by muscle cars, the 70s by the malaise, and so on and so forth. While it is only 2023, a fairly clear pattern has emerged that will most likely be the single defining characteristic of this decade: sustainability. Sustainability can mean a variety of things in the world of automotive, from better materials used in manufacturing to increasing the market share of electric vehicles. The definition of sustainability according to the EPA is “creating and maintaining the conditions under which humans and nature can exist in productive harmony to support present and future generations.” Unfortunately, for many of these prior decades, the acts required to pursue sustainability were accidentally or purposefully ignored by many segments of the automotive industry and American society. However, with increasingly dangerous environmental consequences forecasted by the world’s top scientists, sustainability is now at the forefront of global conversation. Automakers, whether out of a motivation for increased profits or mandates from the federal government, are attacking the issue of sustainability from a variety of angles. The sum total of this effort will in theory transform an industry known for damaging the environment to an industry that actively works to sustain it, ensuring that vehicles continue to be a net positive far into the future. One of the biggest questions surrounding widespread EV adoption is the sustainability of material sourcing. EVs require significant amounts of rare earth minerals (REMs) which are often sourced from less-developed countries. EV batteries are made up of materials such as lithium, cobalt, copper, and nickel, with the vast majority of lithium mining taking place in Australia, Zimbabwe, and Brazil. Popular mechanics reports that the average EV requires 8 kg of lithium to manufacture. With the global available lithium reserve at 22 million tonnes, there is no apparent shortage of material required to construct an enormous amount of electric vehicles. However, as of 2021, the total world production of lithium was 105 tonnes, and by 2030, it is possible that manufacturers will need to acquire up to 450,000 tonnes of lithium per year. More problematic still, lithium mines are extremely water intensive and are notorious for polluting water sources while causing significant damage to local biospheres. As a part of making EVs sustainable, new methods must be devised to reduce the impacts of lithium mining. Luckily, a lithium mine in Snow Lake, Manitoba is taking the lead on the future of EV sustainability. The idea behind the Snow Lake lithium mine is to create an all electric mining operation. Positioned next to a hydroelectric power station, Snow Lake Lithium hopes to draw 98% of their power from the dam while similarly not using any diesel burning vehicles to extract or haul materials. Lithium is currently extracted using two methods: hard rock and brine. The hard rock mining process requires less water than brining, and the Snow Lake mine plans to employ this method to save water and reduce contamination of the local environment. In theory, this mine could produce up to 160,000 tonnes of 6% lithium spodumene every year, providing OEMs a sustainable and local source of materials so essential for the next generation of electric technology. Assuming Snow Lake Lithium is able to reach its expected potential, it is not unreasonable to extrapolate that more mines will follow suit, leading towards an overall marked improvement in the sustainability of car battery production and compliance with the Inflation Reduction Act. Going beyond the obvious issues with battery sourcing, OEMs have a variety of other unsustainable practices surrounding material acquisition. An example of this is the amount of leather used for car interiors. In Brazil, the auto industry uses over 30% of all leather hides produced from the country’s cattle ranches, a side effect of the meat industry driving rampant deforestation and destroying millions of acres of the Amazon rainforest. Environmentally sustainable leather could look like buying from more ethical and regulated domestic sources or improving the quality of synthetic materials. Along the same lines, keeping parts manufacturing close to the location of final assembly will drastically reduce the emissions caused by international shipping. Maritime shipping alone accounts for about a billion tons of greenhouse gasses per year and make up 3% of all global emissions by themselves. This does not account for air cargo, trucking, rail or any other way of moving goods across the world. A concerted effort by OEMs and mobility providers to move their supply chains physically closer together is essential to sustainability in the long term and will likely reduce costs as federal regulations around parts sourcing tightens. OEMs have a myriad of different ways to attack their chronic sustainability issues. Nearly every part of the industry could be made more environmentally conscious in some way without a long term increase in costs. Investment in things like supply chain integration and advanced mining may seem like an undue financial burden now, but by the end of the decade, the payoffs – both financial and environmental – will be abundantly clear. Working towards a sustainable future will be the primary mission for the auto industry for the foreseeable future, and if the right decisions are made, the 2020s will be remembered as the decade of sustainability for generations to come. Learn more about how the AutoMobility Advisors team can help you and your business seize the amazing opportunities to serve the new mobility market. Click on the link below and get in touch, we’d love to talk with you! Home Let us help you succeed in AutoMobility! Edit Template Edit Template Contact Us Today Name Email Message Send Edit Template Get to Know Us About Our Team Consulting Services Events AMA News Get the AutoMobility Roadmap Newsletter White Papers & Reports AMA Thought Leadership Let’s Connect Contact Us Follow us

The Green Acceleration

AutoMobility Roadmap Newsletter The Green Acceleration October 23, 2023 Rapid technological advancement is often a symptom of great human need. On a fateful December day in 1903, the Wright Brothers accomplished the first controlled flight of a heavier-than-air aircraft. After almost 5000 years of human civilization, this was the first time that humans were able to achieve this momentous feat. Yet, 66 years later, within one single lifetime, man landed on the moon. These 66 years saw two globe spanning conflicts and one of the most rapid eras of technological development in human history. Simply put, the need to defeat advanced and threatening enemies drove near-unthinkable levels of innovation. In the 21st century, a new enemy has arisen, one perhaps as existentially threatening or more than the United States’ previous adversaries abroad. This new enemy is not an ideology or a country, but the dangers to our planet that have resulted from decades of burning excessive fossil fuels. Climate change is the next great hurdle humans have to overcome. The United Nations among a variety of other global organizations has reported that the Earth’s temperature has increased by an average of about 1.8 degrees Fahrenheit since 1880 and could potentially warm by 2.7 degrees Fahrenheit by 2050. Assuming that nothing is done to curb this change, these higher temperatures will result in water shortages, unlivable summer conditions, higher ocean temperatures, and greater prevalence of extreme, life threatening weather events. Though grim, this challenge is not insurmountable, and the automotive industry has an increasingly viable solution. The investment into and mass adoption of electric vehicles will have an enormous impact on slowing the climate change crisis, especially as growing need drives further innovation. According to the EPA, the transportation industry accounts for 29% of all US Greenhouse Gas (GHG) emissions. This sector of the economy is by far the largest contributor to GHG emissions, and the EPA has thus far spent decades working to curb these numbers. Globally, passenger cars produce nearly 3 billion metric tons of carbon dioxide emissions per year. Moreover, cars and vans alone produce just under 50% of all global carbon emissions. It is clear that the automotive industry makes up a disproportionate percentage of the world’s emissions output, so the adoption of EVs will make a significant impact on the efficacy of the global climate response. Regulators, automakers, and consumers alike have recognized that EVs are an important step towards reducing these numbers, and great strides are being made towards conquering the challenge presented by the climate crisis. Since 2016, most major automakers and new automotive startups have funneled enormous amounts of capital and talent into EVs. In the last two years alone, investment has skyrocketed from $50 billion to $210 billion, driven by stricter legislation and widespread consumer demand for environmentally conscious vehicles. Much of the investment goes towards developing brand new EV models. Companies such as Ford and GM now have flagship EV models that are able to compete directly with the likes of Tesla and Rivian. Moreover, consumers are noticing and rewarding automakers for their commitment to EVs. In Q3 this year, Tesla’s share of the EV market dropped below 50%, as more buyers look to traditional manufacturers offering competitive products. However, this was the strongest quarter for EV sales ever, with over 300,000 vehicles sold, surpassing both Q2 and passing Q3 2022 by almost 50%. Coming in at just under 8% of the total market sales in Q3, EVs have a long way to go until they dominate the market, but these bullish sales figures paint a rosy picture for environmentalists, regulators, and OEMs alike. The next step in reducing carbon emissions is the mass implementation of battery-electric medium and heavy duty vehicles. A frequent point of discussion on the AutoMobility Roadmap, electric commercial vehicles have the potential to completely overhaul the way in which businesses produce carbon emissions. Cutting out nearly 25% of all transportation CO2 emissions (456.6 million tons of carbon dioxide) sounds like an impossibility, but with such strong financial incentives from the US government, it is closer to reality than previously thought. A plethora of commercial vehicle companies are investing time and money into developing practical EVs that fill the needs for markets such as tractor trailers and delivery trucks. Attacking toxic emissions outputs from this direction is sure to be a necessary step in the battle against climate change. In the grand scheme of things, the battle against climate change has only just begun. EVs still make up a small minority of the market, and the challenges around their production have not yet been solved. 110 years ago, the aviation industry was in the same situation. Difficult production of expensive novel technologies held aircraft back. But with time and urgent need, this lull was rapidly reversed, leading humanity to walk on the moon not six decades later. EVs have reached that critical stage, and as summers become hotter and severe weather more deadly, it is almost inevitable that EVs will capture a large enough portion of the market to make a stand against climate change. Learn more about how the AutoMobility Advisors team can help you and your business seize the amazing opportunities to serve the new mobility market. Click on the link below and get in touch, we’d love to talk with you! Home Let us help you succeed in AutoMobility! Edit Template Edit Template Contact Us Today Name Email Message Send Edit Template Get to Know Us About Our Team Consulting Services Events AMA News Get the AutoMobility Roadmap Newsletter White Papers & Reports AMA Thought Leadership Let’s Connect Contact Us Follow us on LinkedIn Follow us on YouTube Copyright @2024 AutoMobilityAdvisors, All Rights Reserved. Edit Template

Turning EV Dreams Into Reality: Fleet Edition

Turning Ev Dreams into Reality

EVs are solidifying their place as the future of automotive technology. With billions of dollars of investment pouring in from national governments and the private sector, it is abundantly clear that electric technology is here to stay.

Tech Training Transition, Today!

For the first time in history, workers from Detroit’s Big Three automakers have decided to go on strike simultaneously. After failing to reach a new deal by 11:59 pm this past Thursday night, United Auto Workers’ President Shawn Fain directed workers from the largest union in America to walk off the line at three assembly plants: the GM factory in Wentzville, Missouri, a Stellantis plant in Toledo, Ohio, and a Ford plant in Wayne, Michigan. As a part of Shawn Fain’s “standup strike” strategy, only 13,000 of the 150,000 workers in the UAW are on strike right now, but more shutdowns are threatened at a moment’s notice if negotiations do not proceed as planned. UAW workers are striking for a variety of improved benefits including a 40% increase in wages, better retiree healthcare, and the restoration of lost pension benefits. Many within the UAW see the successes of the OEMs, especially with the increasingly massive adoption of EVs as the perfect time to field their demands for matching improvements in pay and benefits. Antiquated mindsets have left the average worker in the dust, but OEMs have a once in a generation opportunity to reframe their relationship with workers and unions as this strike progresses. For the last century, the relationship between worker and employer has evolved quite significantly. The advent of collective bargaining in the automotive workplace during the 1930s, 40s, and 50s laid the groundwork for the modern relationships between unions like the UAW and Detroit’s Big 3 OEMs. Decades of negotiations and strikes defined the pay, hours, and benefits that the average worker receives in 2023, but as technology rapidly advances within the smart vehicle and EV spaces, the needs of these workers (and of the OEMs) have suddenly been turned upside down. OEMs have traditionally considered their factory employees blue collar workers, more akin to electricians, machinists, or even plumbers. This mindset is outdated however, as cars increasingly do not require the assembly of engine parts and transmissions, but instead of high-tech motors and batteries. Perhaps thinking of line workers as high-tech employees is where the real future lies. It is no secret that the realities of manufacturing are changing significantly. The last twenty years have seen the rise of automation within manufacturing. More and more “robots” and other high tech industrial systems are being implemented, requiring fewer and fewer people to do the same jobs. For example, an engine assembly line that required 100 people in 1995 may only need a fraction of that total to function today. Even on traditional ICE assembly lines, what is required of the workers has been changing for years. Now, as EVs gain traction and automakers dedicate more and more of their time, capacity, and resources to their development and production, these workers will need to be reoriented and retrained to do things essential to EV production. As a part of an eventual deal reached with the UAW, OEMs will need to consider how high tech cars require more high tech workers, and how the benefits afforded to their tech employees should align with the technological intricacies of modern EVs. According to Representative Debbie Dingell (D-MI), battery plant employees in Lordstown, OH are making $16/hour, while employees at a neighboring McDonalds are making $23/hour. Pay issues like this are partially a symptom of the enormous cost undertaken by OEMs to retool their factories for EV production, modernize old facilities, comply with Federal regulations on material sourcing, and incorporate all of the advanced “smart” mobility technologies that consumers now demand into new vehicles. Detroit’s Big 3 along with other auto manufacturers have justified the lagging pay and benefits as an inevitable cost-saving measure, arguing that consumers will struggle to afford new EVs if union demands are met. Moreover, the Big 3 are competing against competitors that do not have unionized labor, squeezing profitability even further. While these concerns do have some merit in the short term, a reoriented mindsight shows that treating plant employees as high tech workers and investing in them as such will pay off in the long run. And unlike McDonald’s, which already struggles to staff their franchises, OEMs will have an increasingly hard time hiring high-tech workers for entry level wages, potentially leading to harmful staffing shortages. The requirements of the Inflation Reduction Act (IRA) will continue to constrict OEMs and incentivize them to build more EVs in America, and by investing in workers today, OEMs will be better prepared to shift over to all electric vehicle production within the next 10-15 years. Strikes are a complex matter. Disagreeing leaders are forced to come to a compromise on nearly non-negotiable terms, sometimes accepting sub-optimal outcomes. Complexity doesn’t even begin to describe the difficulties of negotiating a deal between three of the largest corporations in the world and 150,000 workers in 2023. Despite this though, there are solutions which are mutually beneficial to the OEMs and UAW alike. With some shrewd negotiations and a focus on a better future, the OEMs and the workers will be able to come to an agreement and work together to forge a path through this brave new world. Learn more about how the AutoMobility Advisors team can help you and your business seize the amazing opportunities to serve the new mobility market. Click on the link below and get in touch, we’d love to talk with you!

Electric – Connected – Predictive

As the automotive industry transitions towards EVs, many important questions have arisen about maintaining these increasingly complex and expensive vehicles.

Broken Record

With summer winding down, one theme dominated headlines around the world for the last two months: record heat. Temperatures from California to Greece reached record highs, with hundreds of millions of people locked in a months-long pattern of extreme temperatures with little relief. In Phoenix alone, residents experienced a mind-boggling and dangerous record of 31 consecutive days with high temperatures over 110 degrees Fahrenheit. In Asia, the Caribbean, and in Europe, countries faced unprecedented stretches of heat with the Italian region of Sardinia hitting nearly 120 degrees Fahrenheit. Coupled with abnormally dry conditions, hugely popular tourist destinations such as Rhodes and Maui faced massive fires killing hundreds of people and causing billions of dollars worth of damage. It is evident that summer is getting hotter and more dangerous. The question is, what can the auto industry do to speed up efforts to change the vehicle mix and help combat climate change? Great progress has been made in the last 15 years in the development and adoption of both EVs and importantly connected car services. EVs have captured a significant minority of global new car sales, increasing from 4% of new car sales in 2020 to 14% in 2022. .Likewise, according to research done by Smartcar, 91% of all vehicles sold in the United States in 2020 were connected to the internet, bringing advanced features to customers and moving the industry closer to the concept of software defined vehicles. These high-tech advancements were intended not only to improve the customer experience, but also to lessen the automotive industry’s impact on climate change. EVs are projected to phase out ICE powered vehicles, eliminating tailpipe emissions, while connected vehicle software will optimize the user experience and efficiency of vehicles. Despite these efforts however, climate change is not slowing down, and a variety of new problems have arisen that significantly impact the benefit afforded by EVs and advanced connected car technologies. These issues range from vehicle wear, to power grid drain, to rare earth material (REM) shortages. An article published last week by The Drive reported that the tires on Rivian’s R1T and R1S models are wearing out in as few as 6,000 miles. Rivians are notably very heavy and have massively powerful electric motors able to propel the three and a half ton vehicles to 60 mph in 3.3 seconds. But the incredible power and weight of these EVs have seemingly left the tires fitted to the vehicles outclassed, creating the potential for an enormous increase in rubber waste and ownership expenses. As EVs become larger, heavier, and faster this problem will only increase, fueling the current environmental crisis and apprehension about EV adoption.  In the Sun Belt, the dangerously hot summer conditions caused the need for around the clock air conditioning in spaces across most of the affected states, It was reported by Arizona Public Service that July 14th and 15th each set records for the highest consumer power demand in the state’s history. And Arizona’s power supply runs mostly on natural gas, which while better than coal, still contributes to the pollution of the atmosphere. Higher temperatures caused by climate change require more air conditioning, which in turn creates more pollution. EVs are not responsible for this situation, but their increasing need for power may have long term impacts on states still utilizing fossil fuel power generation methods. So increased demand from consumers to cool their homes and charge their EVs fuels a vicious cycle fueling the climate crisis. All of these issues in conjunction with the exponential growth in chip demand for high-tech vehicles has forced the auto industry to face unexpected and sometimes uncomfortable questions about their collective efforts to combat climate change. The news is not all bad however, as the products and services that are having unintended consequences on the climate may also be able to help solve them. Though costly, measures such as bi-directional charging, where EVs contribute excess power back into a home or the grid could be implemented as a way to shed some of the electrical load caused by extreme weather. A less expensive alternative that is available today is interruptible charging, in which vehicle charging can be remotely controlled and suspended while plugged into home chargers during the hours where electricity demand is at its highest. Another option is smart routing which could bring down the environmental cost of ownership and help offset the climate impact of bringing new technology into vehicles. It is inevitable that EVs will continue to gain market share, and software defined vehicles will become the industry standard. With creative and proactive solutions such as those mentioned above, the automotive industry will be able to more successfully contribute to the struggle against climate change, working to safeguard the world for future generations. All of us in the automotive industry can make a big difference.

Summertime Classics

This past Father’s Day, two parts of the AMA team had the opportunity to celebrate the occasion by enjoying the Cheekwood Concours d’Elegance in Nashville, Tennessee. Dan, our Advisory Director, and his son Hayden, our Head of Market Research, are lifelong car enthusiasts, with Dan having spent extensive time in the industry and Hayden growing up surrounded by car culture. Both of them are passionate about classic cars, and Hayden aims to share this love with other members of the younger generation. Hayden is a rising senior at Harvard studying history as well as a cadet in the Air Force ROTC program, with an interest in all things fast stemming from an early exposure to muscle cars and supercars. Below we describe our favorite vehicles at the show and some of the observations garnered from the outing. Boasting a fun and friendly environment, the Father’s Day show was an absolute blast. With cars spanning nearly one hundred years of automotive history, it was fascinating to see some of the greatest vehicles of different eras in perfect working order. Going chronologically, the oldest and perhaps most interesting cars at the show were the 1927 Rolls Royce Phantom I, a 1930 Lincoln Sport Roadster, and the selection of Packards from the 30s. Evoking feelings of splendor and glamour, the Gatsby-esque Rolls Royce was more akin in size to a Ram 2500 than a Rolls Royce Phantom of today. Fun to imagine what life might have been like for the lucky aristocrat or baron who had the privilege to be driven around in such a vehicle.  A favorite feature of the car was the dual windscreens. Though not unique to Rolls Royce, the concept of a two windshield convertible coach exudes prestige and class while encapsulating the design language of the roaring 20s. An absolutely extraordinary piece of engineering.  The next car that really caught our attention was the 1930 Lincoln Sport Roadster with a body built by Locke and Company of Rochester, New York. One of a mere 15 models ever produced, this was probably the rarest car at the exhibition. Finished in two tone green with a tan convertible top, this special Lincoln cost over $5000 new (nearly $90k today accounting for inflation). This car is one of three surviving examples of the original production run, and has gone through two restorations in order to preserve the car’s rich history for modern day car enthusiasts. Unsurprisingly, the roadster is frequently featured at prestigious events including but not limited to Amelia Island, the Glenmor Gathering, and St. Johns. I really enjoyed the combination of 20s and 30s car design combined together to create the ultimate Depression-era roadster.   Seldom seen on American roads anymore, the show boasted several Packards from the 1930s. Two Packard Super Eights, a green convertible built in 1934 and a red sedan built in 1937 were on display. Both cars had beefy straight eight cylinder engines and would not look out of place in a 1930s gangster movie. More interesting than that, we had the opportunity to sit in and hear the owner start a 1938 Packard Twelve Coupe Roadster. Powered by a 437 cubic inch V-12 paired with a three speed manual transmission, the remarkable engine was nearly silent upon start. Epitomizing 30s luxury, the car at new would come in at a whopping $122,000 adjusted for inflation.  Additionally, a great variety of more “classic” post-WWII American and European cars were on display. Our personal favorites were a 1959 Cadillac Coupe DeVille, a 1958 Porsche 356a Speedster, and a 1969 Mercedes 280 SL Roadster. Timeless but each encapsulating their different eras, we also had the opportunity to sit in and explore the interior of the Mercedes. Showcasing some early connected features, this car had a 5-band radio. Even cooler, it was the one featured in the Mercedes-Benz 2011 Super Bowl commercial. Far from the features of a modern car, it is nonetheless intriguing to examine the precursors of connected vehicles.  With that, we’ve covered our favorite cars from the Cheekwood Concours d’Elegance. Going to events like this is an essential activity for any car enthusiast, because rarely is so much automotive heritage on display in such pristine condition. As EVs are phased in and ICE cars are retired from production, there’s something special about seeing and experiencing the power and feel of classic cars. Happy belated Father’s Day and Fourth of July!

AMA at Auto Tech: Detroit 2023

Bridging the long gap between CES 2023 and CES 2024, AutoTech Detroit marks a productive halfway point through the year for the automotive industry to showcase their latest advances and outlooks in automotive technology.

AMA at Auto Tech: Detroit 2023

Bridging the long gap between CES 2023 and CES 2024, AutoTech Detroit marks a productive halfway point through the year for the automotive industry to showcase their latest advances and outlooks in automotive technology. Attended by nearly 2500 industry professionals, 250 exhibitors, dozens of speakers, and 850 companies, AutoTech found itself to be a bustling hub for business discussions, collaboration, and planning for the future. The showing was impressive this year, continuing to prove that the want and need for trade shows was not  killed by virtualization born from the Covid-19 pandemic.With such a focused gathering of automotive technology suppliers and OEMs, the content and business of the show was dominated by a few major themes. Coming up constantly across the panels from many experts ranging from Verizon, T-Mobile, and AT&T executives, to senior business development leaders across the major OEMS, connected cars and the future of connectivity took center stage during the show. Beginning the show with a bang, AT&T and safety solutions provider Haas Alert announced that cellular data used to provide vehicle safety features would be free in order to facilitate further advancements in safety oriented connectivity. Marking a major shift from prior policies, the cooperation between a major service provider and safe-software suppliers will open up a vital opportunity for cost-effective development of cutting edge safety features as further regulations are placed on OEMs both in the United States and abroad. Interestingly, these safety features are applicable beyond in-car use, additionally being able to communicate with pedestrians and warn of oncoming traffic or other hazards. Linking the two groups in such a way could drastically reduce the number of accidents between cars and pedestrians, saving countless lives on a yearly basis. Connected car was presented as an answer to the next generation of questions concerning the safety of drivers and passengers of the newest personal vehicles.  Moreover, AI based algorithms for insurance, condition monitoring, and emergency services were presented by OEMs and suppliers as accurate solutions for some of automotive technology’s most pressing issues. A speaker from Mercedes-Benz USA informed listeners at a June 7 panel that an onboard analysis of ADAS incidents could be used to notify authorities in an event of an emergency such as a driver seizure. Other companies like MOTER Technologies presented the ability to create advanced driver behavior based insurance in real time using edge processing in order to process data at the car, transmitting less data from the car, saving cost and mitigating privacy issues at the same time. MOTER is the first company to obtain approval for this form of high-tech driver’s insurance in the US, so a revolution in affordable insurance is on the cusp of taking the industry by storm. Topics covering the connected car’s efficacy and benefits took up a significant amount of AutoTech’s bandwidth, making clear to manufacturers and suppliers where the future of the auto industry lies.   Beyond the importance of safety, software defined vehicles were a preeminent topic examined by almost all attendees across the show floor. Industry experts noted repeatedly that software within vehicles is coming to define the consumer experience, and that customers are demanding more and better software-based features out of their cars. Some questions continue to surround the method of entertainment for owners of EVs at charging stations, in which they may find themselves needing to be occupied for one to two hours while their car recharges. For example, BMW recently announced a partnership with AirConsole that allows driver’s of their vehicles to play a collection of curated video games while they wait for their EV to charge, by using their Smartphone as a game controller. https://www.linkedin.com/embeds/publishingEmbed.html?articleId=8564693891085967291&li_theme=light Further, new methods of bundling entertainment as OEM controlled subscriptions were floated by panelists from automakers and major studios, perhaps opening the gate to significant changes to the way content is viewed by the driver and passengers in a car. Similarly, as the debate around the future of AM and FM continues to divide the automotive world, up and coming audio services sought to make their mark and move in to snap up the market share of in-vehicle audio listeners. AutoTech presented the reality of the entertainment space as a crucial piece of the software puzzle for OEMs, one which had to be answered well enough to meet the consumer’s growing needs. Like CES in January, AutoTech was an environment of businesses coming together to present real solutions to current problems. AutoTech proved that the auto industry is actively making the leap into next generation connected car and software defined vehicle technology. Business models continue to evolve, and the breakneck pace of development was spurred on by the myriad of ready-for-market services and innovations covering all facets of the market from insurance to in-car entertainment. The excitement and importance of the AutoTech Detroit event on the calendar should not be underestimated, allowing industry professionals the opportunity to easily peer into the future of tomorrow’s automotive world today.