One thing that has always got everyone in the automotive business talking is safety. It’s an interesting one. Cars have become much safer in recent decades, of course. There have been plenty of innovations, starting with safer design (doffs cap to Ralph Nader) and the trusty seatbelt. Roads are designed to be safer, too. And yet, there is a very long way to go. Some 1.3m lives are lost on the world’s roads each year and 50m more are injured.
The good, the bad and the ugly in terms of current automotive safety news?
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The good? There are some very clever advanced technologies that are reducing the chance of having an accident (active safety). Much is being rolled out and plenty is coming in the next few years. We heard this week of Toyota’s impressive plans.
The bad? The experience of Takata’s burgeoning airbag recall shows how things can go wrong. The fault – which could see shards of metal sprayed out into the cabin – is allegedly an issue mainly in places that are warm and humid. However, the company is being slowly dragged from a regional recall into something more, with some manufacturers taking the initiative. Yep, there will be costs that will hit its bottom line.
The ugly? How about this from India? (watch the NCAP video clip if you dare.) Now, some words of mitigation are clearly necessary. A stripped down low-cost car is still a lot safer than a two-wheeler. However, expectations and standards are rather different these days. A car tends to be benchmarked against other cars. The cynic might say that NCAP is touting for business, but there is something deeply unsettling about stripped down cars coming with major safety compromises that are legal in emerging markets, but not in developed markets.
Moving on, we published a briefing last week reviewing the financial health of the world’s suppliers, as well as looking at M&A deals and IPOs. Well worth a look.
From Tony Pugliese in Jakarta, we had this take on the cooling down of the Indonesian car market.
Still on tech, there’s the possibility that BMW and Tesla will be cooperating. One thing I admire about Elon Musk is his readiness to do whatever it takes to achieve progress towards his vision. And Alcoa’s stock rose after reports that Lexus is planning more aluminium use in its models.
There was also the news this week that the new small SUV from Mahindra-owned SsangYong will be called Tivoli. It’s a small brand, but an interesting one – not least because of its return from the near death of industrial strife and bankruptcy not so long ago and the new lease of life under an Indian parent. I interviewed the UK distribution head for the brand who was on very good form. Well, he has just doubled the brand’s unit sales and is confident he can do that again in 2015, helped by the Tivoli.
We also published this week an interview with Alain Uyttenhoven, Head of Lexus Europe. There are clearly some high hopes for the NX.
And, from my colleague in Brussels this week, there was news of an interesting change of tone from a representative of the European Commission speaking at a CLEPA event. A positive sign, perhaps, that people inside the EU’s institutions are beginning to understand the need to adapt.
If you celebrated Thanksgiving this week, I hope you had a good one.
Have a good weekend and drive safe.
Dave Leggett
Editor, just-auto
