Tag Archive for GM

Motor City v. Silicon Valley

– Updated 03-30-2018 – Business Insider reports that Silicon Valley darling Tesla shares have collapsed almost 6% since January 1 on a string of critical reports about the company’s ability to keep up healthy production levels and meet delivery expectations for its new mass-market Model 3 sedan.

Motor City v. Silicon ValleyBack in April, the tech sector was leaping for joy when Tesla’s stock market valuation passed Ford and GM. Rumors abound in Silicon Valley that Tesla is the future of transportation and Elon Musk is the king of cars because they took more orders for cars that did not burn up or crash out of control. In 2016 Tesla delivered only 76,000 vehicles. Ford sold nearly 1 million F-Series trucks in 2016.

Ford and GMDespite the happy dances in Silicon Valley, which fancy itself as the logical successor to Detroit as the capital of American innovation new research says not so fast. The west coast upstartsUber, Google (GOOG), and Tesla (TLSA) — still have a lot of catching up to do when it comes to outpacing Michigan manufacturers. The Verge points us to Navigant Research, whose newly released “leaderboard” report ranks autonomous vehicle players not just on their ability to make a car drive itself, but on their ability to bring that car to the mass market. 

Navigant Research scored 18 companies working on self-driving technology on 10 different criteria related to strategy, manufacturing, and execution. The report combined all that into an overall score to get a sense of who’s ahead and who’s not. General Motors (GM) and Ford (F) are currently leading the pack, with Daimler and Renault-Nissan close behind. Those four companies make up Navigant’s “leader” category. In other words, when you climb into your first self-driving car in 2021, it will almost certainly be built by one of those four companies.
Navigant Research Leaderboard: Automated Driving Vehicles

Most everyone else is in the “contender” category. This includes car companies like BMW, PSA, Hyundai, Toyota, Tesla, and Volkswagen; suppliers like Delphi and ZF; and tech firms like Alphabet’s Waymo. Further down the list, in the “challengers” category, are companies like Honda, nuTonomy, Baidu, and Uber.

Detroit is beating Silicon ValleyGM Assembly line

Sam Abuelsamid, a senior research analyst at Navigant and one of the authors of the report, told the Verge the reason Detroit beating Silicon Valley so badly in this all-too-crucial race to get autonomous vehicles on the road is because of experience. He says, Silicon Valley, “ …. will have to do deals with someone to get actual vehicles.”

Alphabet’s Waymo, scores top marks for technology but drags in the production strategy and sales, marketing, and distribution buckets. The company plans to work with legacy automakers to put its tech in cars, but has not yet struck any major deals. Mr. Abuelsamid detailed on an email with the Verge that Waymo is in the best position of the contenders.

Waymo logoThey have almost every piece of this—except the product strategy … Waymo has what is arguably the best technology right now, although they probably aren’t that far ahead of the leading [original equipment manufacturers] but they will have to do deals with someone to get actual vehicles”

Despite Uber’s high profile, a recent study showed that only 15% of U.S. consumers have tried a ride-hailing app like Uber. Uber also has a safety problem – Uber drivers have been charged with murder and violent crimes against their customers.  In the Navigant research, Uber wallows near last place thanks to low grades for distribution, product portfolio, and staying power—and because makes Uber makes neither cars nor money. In fact, its key strength—that it already operates a global fleet of shared vehicles—may not be enough here. “It’s a lot easier for the company that actually has the infrastructure to create vehicles to recreate what Uber’s done, than the other way around,” Mr. Abuelsamid says.

Scale matters in the auto industry.

The Navigant analyst explained scale matters in the auto industry.

All the little [Silicon Valley] startups may have some interesting ideas, but they don’t have the resources to produce something sufficiently robust to be commercially viable. If they have something good to offer, their best bet is an acquisition

Mergers and acquistionsThe “legacy automakers” have engaged in mergers and acquisitions and early maneuvering in the autonomous vehicle arena as Mr. Abuelsamid stated. The report predicts that big companies will buy little startups to leverage their technology and expertise to round out the much larger-scale enterprise of developing, testing, validating, producing, and distributing self-driving cars.

Wired says Ford and GM both score in the low to mid 80s on the technology front; it’s their old-school skills that float them to first and second place. They’ve each spent more than a century developing, testing, producing, marketing, distributing, and selling cars. Plus, each has made strategic moves to bolster weak points.

Chevy BoltGM recently acquired Cruise Automation, a San Francisco-based autonomous vehicle technology maker in a deal valued at more than $1 billion. GM said the acquisition will allow it to “accelerate” its autonomous vehicle development efforts.

Ford has announced an investment of $1 billion over the next five years in Argo AI, a startup run by Carnegie Mellon roboticists and engineers who really know their artificial intelligence stuff.

Waymo Chryslet PacificaFiat Chrysler has partnered with Alphabet to jointly test autonomous technology in Pacifica minivans, and Alphabet is opening a 53,000 square foot self-driving car development center near Detroit in Novi, MI.

GM has invested $500 million in ride-sharing provider Lyft to beef up its ridesharing service. In the “long-term strategic alliance,” the companies will work on what they call “on-demand autonomous vehicles.” For now, the deal means GM cars will be the “preferred” vehicle used by Lyft drivers who rent their cars in various U.S. cities. Those vehicles will tap into GM’s OnStar service, while GM and Lyft promised “personalized mobility services and experiences,” but did not elaborate.

Ford invested $75 million iin LiDAR maker VelodyneFord, meanwhile, recently announced a $75 million investment in LiDAR maker Velodyne, to “quickly mass-produce a more affordable automotive LiDAR sensor” so the company can launch a fleet of self-driving ride-sharing cars by 2021

Ford has also acquired SAIPS, an Israeli machine learning firm to further strengthen its ability in artificial intelligence and computer vision. SAIPS has developed algorithmic solutions in image and video processing, deep learning, signal processing and classification. This expertise will help Ford autonomous vehicles learn and adapt to the surroundings of their environment

Ford announced that it would take part in a $6.6 million seed funding round for Civil Maps to further develop high-resolution 3D mapping capabilities. This provides Ford another way to develop high-resolution 3D maps of autonomous vehicle environments. Ford has also agreed to acquire Chariot, an on-demand shuttle service based in San Francisco.

Mr. Abuelsamid predicts that early on,  you probably won’t be buying a self-driving car at a dealership, but rather riding in one that you hail through an app-based service like Uber or Lyft. These vehicles will be part of a fleet owned by a manufacturer, like Ford or GM. Fleet ownership will help manufacturers manage the issues self-driving vehicles are likely to encounter early on, like insurance for the inevitable accidents. Navigant’s Abuelsamid says

With all of that in mind, it’s far easier for a manufacturer to replicate the sort of logistics platform that Uber or Lyft have than it is for those companies to invest in and create the development, manufacturing, and service infrastructure that [original equipment manufacturers] have

Mr. Abuelsamid noted that Tesla ranked pretty far down the “contender” because Elon Musk’s company is “lacking in quality, distribution, financial stability, and their [Autopilot] 2.0 hardware will never be more than limited Level 4-capable (PDF) at best.” In other words, Musk would be advised not to start gloating about his company being valued higher than the OG’s Ford and GM quite yet.

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Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.

Online Security in Era of Connected Cars

Online Security in Era of Connected CarsKarl-Thomas Neumann, CEO of General Motors (GM) European Opel brand announced that GM would launch OnStar telematics service in vehicles sold in Europe in late 2015. The Opel CEO declared the new technology, “transforms the car into a true part of the Internet of things.” The Detroit Bureau says it raises some of the same concerns consumers face on the Internet, including how to protect their privacy in highly connected cars.

App controlled carEven though a growing number of consumers have embraced the idea of having mobile access to smartphone apps, built-in Wi-Fi, and the safety and security promised by systems like OnStar issues loom that consumers, manufacturers, and regulators need to address. At the 2014 Consumer Electronics Show, Jim Farley,  then the top marketing executive at Ford Motor Company (F),  told an audience that the automaker “know(s) everyone who breaks the law, we know when you’re doing it,” thanks to the data collected by its OnBoard Sync technology system.

Despite a quick backtrack by Mr. Farley, the article says he was being truthful. The fact is, the onboard black boxes in most cars are now equipped with two-way capabilities. Privacy has become “a big issue,” according to Jon Allen, a principal with consulting firm Booz Allen Hamilton who focuses on security issues. Precisely what makes such technology so compelling is why it is also so worrisome. Mr. Allen told The Detroit Bureau,

Connected products provide customization and convenience because of the data they track. Part of the great opportunity to improve the customer experience is producing a vehicle that ‘learns’ your habits and preferences. But that information must be protected.

Data privacyThe EU takes privacy seriously and these types of tracking technology have drawn the attention of regulators in Europe and to a lesser extent, in the U.S. The article describes a measure of just how strongly Europeans feel about the issue that came during Opel chief Neumann’s news conference. Unlike the U.S. version of OnStar, the European system will include a “Privacy” button to let a user “choose whether they want to provide location information or not.”

That choice would only be over-ridden after a crash severe enough to trigger OnStar’s emergency call system, CEO Neumann explained. It’s designed to call rescue crews in the event of an accident severe enough passengers might be disabled.

Don't panicThere have been experiments with marketing that could target motorists much as Google today can toss ads at a web viewer based on information revealed by hidden “cookies.” Imagine, they suggest, being able to send a McDonald’s ad and virtual coupon to a car driving near one of its restaurants around lunchtime.

While some drivers might embrace that possibility, others are appalled. The Detroit Bureau reports the potential to reveal more detailed personal information, as well as allowing a vehicle to be tracked, is raising flags on both sides of the Atlantic.

Digtal trackingIn the U.S., an auto industry alliance recently agreed on an approach called “Privacy Principles for Vehicle Technologies and Services.” (rb- Which I covered here) Meanwhile, both the U.S. Federal Trade Commission and the National Highway Traffic Safety Administration are exploring the issues – though in some cases, they are actually encouraging greater access, noted analyst Allen.

The issue is further complicated by the threat of cyber-criminals exploiting vulnerabilities in-vehicle communications systems.

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I first covered this threat in 2011 here and here. And the theoretical became real in 2015 when researchers demonstrated they could use online systems to take over a Jeep Grand Cherokee.

The threat to personal freedom and privacy in your car has accelerated as Apple (AAPL) and Google (GOOG) join Microsoft (MSFT) in the battle to rule the car. Apple’s automotive ambition does not stop at CarPlay, they are also focused on developing an iCar. Google’s Autonomous Cars ambitions are well known, but their efforts to take over the car cockpit are also taking off with Android Auto.

The government is contributing to the connected car conundrum. The Feds are abetting the Autos by trying to prevent security researchers from doing testing and reverse engineering that could improve security and safety for all of us according to Naked Security.

 

Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.

How Safe Is Your Connected Car?

How Safe Is Your Connected Car?There will be 250 million wirelessly connected cars on the road by 2020 according to Gartner (IT). The technical prognosticators believe that 60% – 75% of them will be capable of consuming, creating, and sharing Web-based data. In light of predictions like these and highly publicized car network attack demonstrations car need more security. Intel (INTC) has established the Automotive Security Review Board (ASRB) to help mitigate cyber-security risks associated with connected automobiles.

Intel logoAn Intel presser says ASRB researchers will do ongoing security tests and audits. They will codify best practices and design recommendations for advanced cyber-security solutions and products. Intel will publish automotive cyber-security best practices white papers, which the company will update based on ASRB findings. Chris Young, senior vice president, and general manager of Intel Security said in the presser.

We can, and must, raise the bar against cyberattacks in automobiles … Few things are more personal than our safety while on the road, making the ASRB the right idea at the right time.

Secure car networks

It is the right time to secure the networks in cars. A study released by Atlanta-based PT&C|LWG Forensic Consulting Services looked at what made cars vulnerable to attacks.
Robert Gragg, a forensic analyst with PT&C|LWG told CSO cars with the highest risk of cyber threat tended to have the most features networked together, especially where radio or Wi-Fi networks are connected to physical components of vehicles.

radio or Wi-Fi networks are connected to physical components of vehiclesToday’s modern automobile uses between 20 and 70 computers, each with its own specialized use. The article explains that engine control units oversee a wide array of electronic sensors and actuators that regulate the engine and maintain optimal performance. Vehicle manufacturers use the generic term “electronic control units” (ECUs) to describe the myriad of computers that manage various vehicle functions.

For example, the author says ECUs control vehicle safety functions, such as antilock brakes and proximity alerts. The ECU which governs climate control systems receives temperature data from sensors inside the cabin and uses that to adjust airflow, heating, and cooling.

modern automobile uses between 20 and 70 computers

What is a controller area network

Typically, all of a vehicle’s computer systems can be accessed over a vehicle’s controller area network (CAN) via the radio head unit, a computerized system that runs a car’s or truck’s communications and entertainment system.

firmware can be used to compromise the vehicleMany of today’s modern vehicles can be accessed via cellular, Bluetooth, or even WiFi connectivity. While no easy task, the CSO article says, once a hacker gains access to the vehicle’s head unit, its firmware can be used to compromise the vehicle’s CAN, which speaks to all the ECUs. Then it’s just a matter of discovering which CAN messages can control various vehicle functions.

Car attacks

These attacks can happen at a distance. PT&C|LWG study estimated minimum distances from which a vehicle could be hacked according to the wireless communication protocol it is using. For example, a passive anti-theft system could be access from 10 meters, a radio data system (or radio head unit) could be hacked from 100 meters, a Bluetooth system could be accessed from 10 meters, a smart key from five to 20 meters, and a vehicle equipped with Wi-Fi… well, it could be hacked from anywhere there’s Internet access (rb- I wrote about this vulnerability in 2011).

That may be a problem. Increasingly, carmakers are coming out with vehicles that include Wi-Fi routers for Internet connectivity. PT&C|LWG’s Gragg said.

In more advanced vehicles — the ones that have infotainment systems — wireless security and wireless access points are all connected into the navigation system. So those are more susceptible to hacking because there are just more wireless access points … Anything open to wireless capabilities is susceptible to the hacking.

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In May, both General Motors (of ignition switch cover-up infamy) and the Auto Alliance, the car maker’s lobbyist, testified against a proposed exemption in copyright law that would allow third-party researchers to get access to vehicle software. A decision in that matter could come any day from the U.S. Copyright Office.

Ralph NaderThe Auto Alliance has also threatened to run to Congress should the Copyright Office rule in favor of the researchers to cover up threats to the consumer, like Volkswagen and GM. The lobbying group calls legitimate researchers attackers in a letter to a Congressional subcommittee investigating the auto industry’s ability to thwart cyber attackers; “Automakers are facing pressure from the organized efforts of technology pirates and anti-copyright groups to allow the circumvention of protected onboard networks, and to give hackers with the right to attack vehicles carte blanche under the auspices of research”.

This would set a dangerous precedent for devices connected to the Internet of Things (IoT) to be unregulated. If the automakers are successful in their DMCA claims, it would be deadly for everyone on the road too. 

Who remembers “Unsafe At Any Speed“?

 PT&C|LWG infographicRelated articles

 

Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.

Run Your DC with a Chevy

Run Your DC with a ChevyGeneral Motors (GM) is using Chevy Volt batteries to power a data center. MLive reports that expired lithium-ion batteries retrieved from Chevrolet Volt’s help power the General Motors Enterprise Data Center at the Milford Proving Grounds in Milford, MI.

GM logoGM recently announced that five batteries from first-generation Volts are working in parallel with a 74-kilowatt solar array and two 2-kilowatt wind turbines to green up the data center. The batteries have the capacity to provide backup power for four hours in the event of an outage, GM said. According to the article, the set-up has given the Enterprise Data Center a net-zero energy use on an annual basis, and extra power will be sent back to the grid used by the Milford Proving Ground.

First-gen Chevy Volts still have a lot of juice

As it readies to sell its all-new, second-generation Volt, GM said first-gen cars still have a lot of leftover juice in their battery packs for stationary use. Pablo Valencia, GM’s senior manager of battery life cycle management, said in a presser that the batteries still have value after they come out of the car.

Chevy Volt batteries to power a data center.Even after the battery has reached the end of its useful life in a Chevrolet Volt, up to 80 percent of its storage capacity remains … This secondary use application extends its life, while delivering waste reduction and economic benefits on an industrial scale.

The first-generation plug-in hybrid Volt went on sale in 2010 for the 2011 model year. It uses battery power to get an electric range of about 35-38 miles, before switching to gasoline.

Battery powered carThe 2016 Volt, unveiled last January in Detroit, will have about a 31% greater electric range than its predecessor. The second-gen Volt has about a 50-mile, all-electric range, and a total driving range of about 400 miles when combined with a gasoline engine.

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According to the Detroit News, GM is working with unidentified partners to validate and test systems for other commercial and non-commercial uses. 

Elon Musk‘s Tesla (TSLA) is also leveraging its car-based battery systems to develop a line of storage batteries designed for homes and SMB’s called Powerwall. Powerwall is designed to store electricity for home use, to be used during peak consumption times when utilities charge the most. The device comes in several colors including white, charcoal, red, and blue. There are two options — a 7-kilowatt-hour package using nickel-manganese-cobalt batteries and a 10 kilowatt-hour unit with a nickel-cobalt-aluminum battery.

 

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Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.

Privacy for Drivers

Privacy for DriversFord Motor Company (F) Global Marketing Director Jim Farley touched off a privacy storm when he told an audience at the Consumer Electronics Show that the automaker is tracking their travels thanks to their in-car navigation systems. He told the crowd in Las Vegas that the automaker tracks driver behavior, “We know everyone who breaks the law, we know when you’re doing it.

automaker are tracking travelsThe auto manufacturers have installed “black boxes” on most modern cars. The black boxes are capable of tracking, gathering, and storing vehicle information. In fact, the Fed has proposed that such tracking technology become standard equipment on all cars.

Privacy firestorm

Even though Ford quickly backed down from Mr. Farley’s claims, the comments created a privacy firestorm. As a result, TheDetroitBureau.com reports that privacy advocates accelerated increased pressure on manufacturers to reveal what info that collects on “black box’s” they’re doing with the personal data they do collect – and put limits on how it can be used.

black-boxes are capable of tracking, gathering and storing vehicle information.

In response, a group of 19 automakers has gotten together to lay down some ground rules, which they hope will assuage fears about the accessibility and use of the material. According to the article, the makers say the information won’t be given to government officials or law enforcement agencies without a court order, sold to insurance companies or other companies without their permission.

The automakers agreeing to the “rules,” which they submitted to the Federal Trade Commission, include Aston Martin, BMW, Chrysler (STLA),  Ferrari, Ford, General Motors (GM), Honda (HMC) Hyundai, Kia, Maserati, Mazda, Mercedes-Benz, Mitsubishi, Nissan, Porsche, Subaru, Toyota, Volkswagen, and Volvo.

Self-imposed data collection “rules”

Future carThe author speculates that the automakers are willing to abide by the self-imposed “rules” because they believe actual laws could become onerous. Sen. Edward Markey, D-MA is skeptical of the impact of the “rules.” He called them “an important first step,” but said it remains unclear “how auto companies will make their data collection practices transparent beyond including the information in vehicle manuals.”

Senator Markey noted that the automakers did not offer consumers an opt-out option for whether sensitive information is collected in the first place. He plans to legislate an answer. He said in a statement, “I will call for clear rules — not voluntary commitments — to ensure the privacy and safety of American drivers is protected,” Markey said in a statement.

The automakers also committed to “implement reasonable measures” to protect personal information from unauthorized access. Privacy experts are concerned that in recent years many vehicles have had a variety of GPS and mobile communications technology built into them.

Cloud securityThe TheDetroitBureau explains these devices record and sends all types of information which privacy advocates are afraid the data could be used by the government against the owners of vehicles. Some worry that many three-letter agencies and law enforcement will use data from the device to track citizens. Marc Rotenberg, executive director of the Electronic Privacy Information Center said that legislation is needed to ensure automakers don’t back off their self-imposed “rules” when they become inconvenient. He said,

You just don’t want your car spying on you. That’s the practical consequence of a lot of the new technologies that are being built into cars.

Pop-up ads on in-car touch screens

The black boxes now installed in new vehicles could also be a safety issue for drivers. The article speculates that the rising level of interactivity of cars could open the door for pop-up ads in cars. These automakers’ “rules” do not end the possibility that Pop-up ads could appear on the touch screens of cars, trucks, and SUVs as folks are motoring down the road.

One loophole in the guidelines identified in the blog, if customers agree at the time they buy the car, they could receive messages from advertisers who want to target motorists based on their location and other personal data according to the author. Some safety advocates are concerned about pop-up ads possibly popping up on in-car touch screens while drivers are behind the wheel. Henry Jasny of Advocates for Highway and Auto Safety warned the Associated Press.

There is going to be a huge amount of metadata that companies would like to mine to send advertisements to you in your vehicle … We don’t want pop-up ads to become a distraction.

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Who is listeningThe road to hell is paved with good intentions and full of pot-holes. I covered Cisco’s try at monetizing driver data here. Industry officials say they want to assure their customers that the information that their cars stream from the vehicle’s computers to automakers (or Feds) via OnStar. Sync, Automatic, In-Drive, or Car-Net won’t be handed over to authorities without a court order, sold to insurance companies, or used to bombard them with ads for pizza, gas stations, or other businesses they drive past, without their permission.

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Ralph Bach has been in IT long enough to know better and has blogged from his Bach Seat about IT, careers, and anything else that catches his attention since 2005. You can follow him on LinkedInFacebook, and Twitter. Email the Bach Seat here.