labor

Tesla Troubles

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Tesla: the company that generates more headlines and top stories than actual motor vehicles despite claiming to be a car company. Last time I covered the company, major shareholders had just approved a super unbelievable compensation package for CEO Elon Musk tied to the company’s total market value, rather than to numbers of vehicles produced or Model 3 orders satisfied or JD Power scores or any number of other metrics by which a car company may actually be adjudged to be a success. Just like in Ford’s case earlier, Tesla’s sole focus is on pleasing shareholders, and it really shows.

The problem for Elon and Tesla is, the hype machine eventually runs out of gas and the company valued more highly than Ford, GM, Fiat Chrysler or any number of actual car companies, will have to face the music eventually for perpetually failing to meet the goals it outlines for itself. And that’s a problem when you consistently set outrageous goals that artificially inflate your stock price. That “face the music” time may be coming soon, because there have been several issues in the past few weeks that deserve mention.

Photo by Jesse Gary, KTVU

Photo by Jesse Gary, KTVU

First, another fatality. This is Tesla’s third in which Autopilot was engaged when the death occurred, and the preliminary investigation by a law firm representing the deceased’s family has decided that Tesla’s Autopilot misread lanes in the road and drove the man straight into a median, where the car burst into flames and killed the driver. Tesla insists that the crash is the driver’s fault because its system isn’t perfect and requires drivers to pay attention to the road ahead and provide input when prompted, which the driver apparently was and ignored. The National Transportation Safety Board admonished Tesla for releasing details about the crash before its investigation was complete and kicked them out of their investigation process. And yes, this is the second story in a row that involves someone dying because a technology company deployed a system to the public before it was ready.

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Simultaneously, Telsa was busy recalling 123,000 early Model Ss because of power steering bolt failures that would render the car still driveable, but requiring considerably more effort. While it’s hardly a rare thing for a car company to issue a recall, its coinciding with reports about the Model 3 needing considerable rework after coming off the assembly line paints a poor picture of the company’s quality control.

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Speaking of the Model 3, production has been shut down twice so far this year to address bottlenecks preventing the factory from meeting production goals. In their Q1 investor call, Tesla reported 2,000 Model 3s rolling off the line in the last week before the earnings call, which represents a significant jump over the 1,200 observed in the weeks prior, but remains 20% short of the 2,500 goal Elon set for the company in January. In response to inquiries about the delays, Musk declared that there were no delays, but that deliveries were just experiencing a “Time Shift,” which is basically a way of invoking quantum leap doctor who bullshit to try to explain away your company’s failure. And remember, the 2,500 goal was the re-forecast of a re-forecasted forecast. In addition to the shutdowns to improve efficiencies, Tesla is adding a third shift to their Fremont factory, meaning cars will be produced 24/7 in order to start reaching production goals more effectively.

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Of course, another shift means a greater potential for labor issues and Tesla has had plenty of those recently, with the Center for Investigative Reporting, uh, reporting that Tesla has been under reporting worker injuries on legally-mandated reports to make the company’s safety record appear better than it is. The center’s magazine, Reveal, interviewed more than three dozen current and former employees, including ex-safety personnel and have previously been nominated for Pulitzer Prizes for the quality and reliability of their reporting. Tesla’s response? Lies. All lies! In fact, the Center is an extremist organization and pawn being used by the United Auto Workers union to try to influence workers into joining, which Tesla is known to be against, having reportedly fired 700 workers for their pro-union sentiments last fall.

And this is only one salvo in the many Tesla or Musk have launched at news outlets for accurately reporting the news. A recent Economist article suggesting Tesla would need to raise $2.5 to $3 billion this year to meet production goals prompted a tweet from Musk calling the Economist boring and replying that the company would be profitable in the second half of this year, a claim viewed as dubious by many actual economists who sort of know what they’re doing unlike a certain someone.

As a result of all of these issues, Tesla’s stock value has been dropping. And although he claims that he’d forego a salary in order to see the company thrive, it’s not hard to see how a $52 billion carrot dangling in front of you might motivate you to work towards it. The problem is, when your success metric is as squishy as shareholder value, which is based on perception, rather than substance, your focus is not on safety, or fair worker representation or quality, or or even human life. It’s based on what people think of you and your future potential, and all the talking in the world isn’t going to matter if you can’t do the walking, and right now, Tesla is still at a crawl.

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Authored by
Devlin Riggs

Headlines & New Cars for the week of January 22nd, 2018

Arbeit Macht Schwer

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In case you thought the US was the only country with labor relations issue, here comes Germany to reassure us that we're not so different. Factory workers at Audi and Porsche plants have gone on strike to support demands of a six percent raise and the right to ask for a reduction in hours from 35 to just 28 so they can do things like care for children or the elderly for a couple of years, then return to work full time. In response to the union’s demands, employers have apparently offered a two percent raise, a one-time only “bonus” of two hundred Euro, and flat out refused to consider the reduced hours point. As they say, misery loves company, so I’m happy to see the rich American tradition of overwork and underpay is starting to catch on across the world. It makes me feel slightly less guilty for not working in France or Norway.

Geld Macht Spaß

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Last year we covered the launch of the Porsche Passport Pilot Program, or as nobody calls it, Quadruple P. Well, they have some early numbers to report based on the program in Atlanta and signs are good for the brand, with 78% of participants having never owned a Porsche before. The company envisions this as just one way buyers can experience Porsche ownership, and they anticipate about 30% of buyers will purchase vehicles online in the next couple of years. Mercedes-Benz is thinking similarly, estimating that 25% of their new and used sales will come from the internet by 2025. But back to Porsche Passport - they also say it’s reaching a younger demographic, though they don’t specify how young. Given the fact that most of the participants are opting for the higher-cost, $3,000 per month service, I can’t believe these people are that young. To be able to basically have $36,000 to spend on a car every single year in addition to housing costs, food and other things, it seems like you’d have to be doing pretty damn well for yourself, which generally takes a few years. Or, in some of our cases, not at all. 

We Really Did Forget Dieselgate

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After a disastrous 2015 and '16 where they were found to be using defeat devices to circumvent global emissions laws in their diesel cars, Volkswagen spent most of 2017 trying their absolute hardest to help buyers forget about dieselgate. A lot of this included generous discounts, goodwill campaigns and reinvestment in popular vehicles, not to mention the rebirth of the Microbus as the I.D. Buzz. Turns out, all that work paid off and buyers around the world pretty much did forget and stepped right back in line to snatch up new Volkswagens. What makes it more incredible is that, while the industry as a whole was down last year from 2016, Volkswagen recorded record sales, increasing 4.2% verses the year prior. And while the rest of the industry braces for more stagnating sales, VW sales chief Juergen Stackmann is optimistic, expecting sales to continue to rise in 2018. Based on the popularity of the gigantic Atlas, the compact Tiguan twins and the attractive Arteon, as well as the deal I was able to strike on a leftover 2017, it looks like their aggressive measures may be pretty effective!

Infiniti’s Shocking Moves

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Meanwhile in Japan, Infiniti also had a great year, increasing sales eleven percent over 2016, but they’re still very much playing catch up to the German, English and Swedish luxury brands. Their plans to overtake their competition hinges primarily on electrification, as Nissan CEO Hiroto Saikawa explained this week. All new Infinitis launched after 2021 will be all-electric or will be range-extended hybrids, but not in the conventional sense. The company’s technology called ePower uses a gasoline motor to recharge the battery in its range extended hybrids, but that gas motor doesn’t drive the wheels at all. And there’s no plug-in feature. So the propulsion is entirely electric and the power generation entirely gas. It’s a weird setup, and especially considering Infiniti’s recently-announced variable compression engine, a strange change of approach to try to lure buyers. Then again, it could be a great solution for buyers without a garage or access to plug-in locations. 

Acura Wants to be Exciting Again

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In addition to announcing the new 2019 RDX, Acura dropped a bombshell on the Detroit Auto Show, announcing the return of Type-S and A-Spec brands. For the uninitiated, Type-S is a high trim level applied to Acura models that are especially fast and good handling, and it was last used ten years ago on the TL sedan, but was famously applied to the RSX and Integra coupes, which were a ton of fun to drive. A-Spec is another trim level more focused on comfort, style and refinement than outright speed, so it’s somewhat less exciting, but no less important to buyers. The bombshell, however, was kind of a dud because they didn’t announce which models would get which trim levels or if they’d be bringing back an actually affordable fun car. It’s like Honda has this caged lunatic who wants fun cars and they let it out just a little bit at a time because if they let it off the leash completely, we’d end up with cars enthusiasts like and that’s just too much for them.

France Wants to be Less Exciting

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People keep dying on French roads, with increases over the past three years after steady decreases going back as far as 1972. In response, France is lowering the speed limit on most of their highways by ten kilometers per hour, so the fastest you will be able to legally drive in France is just 56 miles per hour, rendering the fairly standard 0-60 calculations pretty useless. To their credit, the French don’t attribute all the deaths just to speed alone and have tightened regulations on cell phone use and drunk driving. This comes as road deaths are up also in Britain and the United States, illustrating a disturbing trend that I think must be attributed to cell phone usage. When I was hit a couple of weeks ago, I was lucky to come away uninjured and the other driver offered no excuse for why he ran a red light that had been red for at least seven seconds. Based on the Uber and Lyft stickers in his window though, I guessed that he was trying to find a fare. I wouldn’t go so far as to say those ride sharing companies are complicit in the wreck that has cost me days worth of time fighting with insurance companies and trying to find a new car, but the sooner we can integrate smart features into a car so drivers need look at their phones less, the better. 

BMW to Charge for Not Their Service

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BMW, though, has a different idea of how to integrate phones into cars and that involves squeezing its drivers for every penny they can get, like little Bavarian weasels, hiding away all their nuts. But the truth is, the nuts aren’t even theirs! Or maybe the tree isn’t. This is a bad metaphor. BMW wants to charge a subscription fee for Apple’s CarPlay software, which they currently have as a $300 option when you buy a new car. By charging $80 per year after the first year, which is free, they argue that you pay less if you only keep the car a few years, which I guess most BMW owners do because they want to be seen driving a new BMW. The issue here is that more than 400 models of car come with Android Auto and almost as many come with Apple’s CarPlay, but it’s included in the price and not an option you have to add in later. Hell, you can buy a Toyota Corolla or VW Jetta and get these features for free, but you don’t with BMW. It’s like how fancy hotels make you pay for WiFi when you get it for free at Best Western. Why? Because the fancy hotels know you have the money to pay for it. Okay, that was a better metaphor.

Taking Crashes to New Heights

In Santa Ana, California this week, a driver managed to launch his Nissan Altima into the second story of a dental office, using a raised center media as a sweet ramp for the epic Dukes of Hazzard-style flying act. The driver, who was apparently high as a kite, was able to exit the car and hang by the door until police came and literally caught him. He and his two passengers were injured and taken to the hospital where they had some serious coming down to do. 

Photo by Southern Counties News

Photo by Southern Counties News

Tackling Terrible Truckers

From bad drivers to bad truckers, we’re headed back to England, where the Driver and Vehicle Standards Agency, or DVSA, announced the findings of a 4,000 vehicle roadside test. They found that one in 13 trucks on British roads were fitted with an emissions cheat device that give false emissions readings, allowing the truck better performance while drastically increasing pollution. If this sounds familiar, it should because it seems like there’s this type of story every week, it just usually involves auto manufacturers getting caught doing it, not truck drivers who are looking to skirt the law. A representative of the DVSA, Gareth Llewellyn said, “we’re committed to taking dangerous lorries off Britain’s roads. We won’t hesitate to take action against these drivers, operators and vehicles.” Unfortunately for Gareth, when trucks were found with defeat devices, drivers were given ten days to fix the problem or pay a £300 fine, which sounds an awful lot like they’re hesitating to take action to me.

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Have a Seat

Back here in America, our love for three row SUVs has apparently created quite a criminal enterprise, because there have been a rash of robberies - of just the third row seats from SUVs. Apparently, on most General Motors SUVs, like the Chevy Suburban, Tahoe and GMC and Cadillac Siblings, if you’re able to pop open the rear glass on the lift gate, the alarm on the car doesn’t go off. Once inside, the third row can simply be unhooked and then passed out the open hatch. And who is buying all these third rows to make stealing them such a popular endeavor? If you guessed “people who have had their third rows stolen,” you’d be right. It’s tempting to victim blame here and say “just park in a garage or back in so the back glass isn’t so accessible,” but what’s the point of a car alarm if it’s not going to alarm you when someone is stealing something from it? Come on, GM, this is on you.

AI Coming Along Swimmingly

While Google and Amazon work to integrate their digital assistants into more and more new cars, Nissan is going a sort of different direction with their own artificial intelligence. Instead of a female voice, Nissan’s Xmotion Concept features a koi fish as a virtual assistant that swims across the myriad interior screens to provide drivers assistance with, well, driving, as well as entertainment and navigation. It’ll also connect with the driver’s smartphone to share information between it and the car. And in case you’re thinking this is some sort of anthropomorphized Admiral Ackbar-looking fish, no, it’s just a normal koi fish, and I think it’s neat and more companies should think outside the pond when coming up with virtual assistants.

SUV Free and Happy to Be

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While Ferrari and Lamborghini rush to catch up with Bentley and Porsche on the super-expensive SUV craze, McLaren is pretty content just where they are, thank you very much. The company’s chief designer, Dan Parry-WIlliams, told Top Gear magazine this week that “I’m not the first person to point out that an SUV is neither particularly sporty or utilitarian. It’s not ‘everything for a reason’ unless the reason is to clutter up the streets.” He’s referring there to McLaren’s design motto, “everything for a reason,” and it’s refreshing to see a company stick to its credo. Meanwhile, at fellow British sports car company Lotus, whose mantra, handed down from founder Colin Chapman was “Simplify and add lightness,” they’ll soon be launching their own SUV that will neither be simple nor light, though that may be said of their buyers. 

The (Frozen) Vaporware Car

Photo by Simon Laprise

Photo by Simon Laprise

In Montreal this week, someone had a good time at the expense of some local police, who attempted to ticket a snow-covered vintage Toyota Celica Supra that was parked in a snow removal lane, blocking in other parked cars. Upon lifting the very real windshield wiper to place the ticket, the police officer discovered that the wiper arm wasn’t attached to anything because the entire car was simply a pile of snow molded into the shape of a Supra. The whole thing was the brainchild of a French Canadian artist named Simon Laprise, who found the windshield wiper on the street and placed it on the car for maximum confusion. As for the ticket issued? The citation read “You made our night, hahahahaha” or whatever the French word for laughter is.

New Cars

Jeep Grand Commander

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Detroit might make a great place to launch a new Jeep, but that’s just what Jeep hasn't done this week, when images of a new three-row SUV leaked to the media. It seems every company is scrambling to get an SUV with three rows out there for all the families who insist that contorting yourself to wedge in between a door sill and the second row only to sit cross-legged on a tiny, barely-padded foldable bench seat is more dignified than just swallowing your pride and buying the mini-van you should be getting. And with regards to Jeep, they don’t currently have a third-row-capable SUV in their stable and haven’t since the mercy killing of the Commander in 2010. If you forgot the Jeep Commander existed, you’re not alone and you’re totally forgiven because it was horrible and ugly. But now we have had a look at the new Grand Commander, a seven seat SUV that is apparently a China-only vehicle. At least according to what we know about it right now. The new model borrows heavily from Jeep’s other products for styling, which is now a good thing and it looks pretty decent, so it’d be hard to believe Fiat Chrysler wouldn’t wise up and bring it over stateside at some point. Plus, starting at around $38,000, it’d fit right in with most of its contemporary competitors. Until we know if it’s coming here or not, I guess you’ll just have to buy the Honda Odyssey you should be getting anyway.

GM’s Autonomous Bolt

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One of the biggest stories to come out of Detroit this week was General Motors’ launch of the all-autonomous Chevy Bolt. This is a big deal because GM is calling it the first pre-production car to be shown without a steering wheel or pedals, which I guess is accurate since we’ve definitely seen concepts without them before. While it’s ostensibly a major step forward in terms of the future of autonomous vehicles, indicating GM’s confidence that they have a car ready to go completely without human controls, it really doesn’t feel all that special. Just looking at the photos of the interior, which doesn’t have to cater to a driver anymore, it really just looks like they took the passenger’s side, went into Photoshop, copied, pasted and flipped it so the former driver’s side looks the same. That’s it. I mean, in a fully driverless car, you don’t even need a dashboard. Your displays can be anywhere, or everywhere! The seats could swivel or not even face forward, and yet here we are, with a Chevy Bolt where they just Control X’d the steering column and pedals. Congratulations GM on making the future of motoring so unappealing.
 
But thank god, Chevy wasn’t the only company exhibiting at this year’s North American International Auto Show. In fact, there were a ton of new vehicles. If you want to learn more, check out to my Auto Show Rap-Up from last week's podcast

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Authored by
Devlin Riggs