Month: May 2023

Many of us working in the connected car space are searching for explanations for the slow consumer adoption of telematics-enabled, usage-based insurance, or UBI, programs, especially as more new vehicles are embedded with connectivity, which helps power personalized insurance policies and can benefit customers.

Although insurers have widely embraced data, including driving and vehicle data or telematics data, to price policies and manage claims risk, consumer-driven usage has yet to truly expand. But as both vehicle and telematics technologies evolve, I believe we need to engage a key player often missing in the conversation to help customers discover the benefits of using their data for insurance: automakers.

In our latest U.S. Consumer Survey, conducted in December 2021, we found that 67 percent of respondents are aware that their driving and vehicle data can be used for insurance discounts. However, only 22 percent of consumers have used their data for discounts on their insurance premium.

Based on the survey results, consumers can see the value of using their driving and vehicle data but may struggle to engage in UBI programs. So, how can automakers help their customers take advantage of their telematics data?

Automakers, in fact, already play a significant role in supporting their customers’ engagement in UBI programs. They are enabling consumer participation through embedded connectivity, which allows the collection and transmission or sharing of vehicle and driving behavior data. They are also partnering with insurance companies and other third parties to find optimal opportunities to leverage their vehicle and driving data. Automakers are certainly engaged in delivering a more personalized experience for their customers.

But they can do more.

Last week 40,055 vehicles were axed from production plans because of the microchip shortage worldwide as automakers continue grappling with supply chain woes, according to the latest estimate by AutoForecast Solutions.

Most of last week’s cuts were at European assembly plants, where about 29,300 vehicles were removed from factory schedules. There were also losses at plants in North America, Asia outside of China, and the Middle East and Africa, while factories in China and South America had no cuts.

“With every passing week, additional capacity for automotive chips comes online, but digging out from the hole that was created almost three years ago takes time,” Sam Fiorani, AutoForecast Solutions vice president of global vehicle forecasting, said in an email.

But a combination of factors is putting a pinch on shipping logistics, he said.

During the pandemic, many ship companies decided to replace their fleets with more fuel-efficient vessels, and there is now a shortage of ships as new ones are being built.

Meanwhile, exploding auto exports from China are gobbling up space on available carriers. Last year, China exported about 3 million vehicles; this year, exports could rise to 4 million, Moro said as Mazda announced its full fiscal-year financial results.

“This has led to more competition for ships,” said Moro, the former U.S. regional boss for Mazda who takes the global helm from current CEO Akira Marumoto in June.

“So we are working hard to secure ships from Japan,” he added. “We are consulting with ship companies and working to standardize our shipping schedule as much as possible.”

Mazda imports about two-thirds of the vehicles it sells in the U.S. That includes the top-selling CX-5 compact crossover and the newly launched CX-90 large crossover.

Pricing power

Mazda expects U.S. demand to swell this year as it ramps up deliveries of the U.S.-built CX-50 and the Japan-built CX-90 and cashes in on steadily improving U.S. pricing power for its products.

Rising revenue per vehicle in Mazda’s most important market helped propel a 36 percent surge in operating profit for the fiscal year that ended March 31, even amid falling vehicle sales. The impact is the result of a brand-burnishing strategy years in the making.

Over the past four years, Mazda’s average transaction price in the U.S. has risen by $7,000 – topping out at $33,700 in 2022 compared with $26,700 in 2018, the company said.

The shift drove the automaker to record-high annual revenue for the fiscal year just ended, even as global sales shrank to 1.11 million vehicles from 1.56 million vehicles four years ago.

April’s introduction of the large CX-90 will further stoke U.S. sales while moving the brand’s position upmarket. Meanwhile, output of the CX-50 will be in full swing in the fall.

“We hope to drive strong growth centering on our new product launches,” global sales chief Yasuhiro Aoyama said in announcing Mazda’s financial results. “We can achieve that.”

Alabama ramp-up

The Alabama plant that builds the CX-50 has operated on a single shift since last year as it sorts out quality and staffing issues. In July, a second shift will begin there, opening the valve on output.

U.S. sales of the CX-50 totaled only 9,764 vehicles in the first three months of 2023.

The Huntsville factory is jointly operated by Mazda and Toyota Motor Corp., with its total capacity of 300,000 split in half. Mazda has said the CX-50 alone could reach 150,000 vehicles.

Mazda expects overall brand sales in North America, its largest market by far, to rise 22 percent this fiscal year to 496,000 vehicles. That will power a 17 percent rise in global sales to 1.3 million vehicles.

In Europe, where Mazda has introduced the CX-60 crossover, volume is predicted to go up 18 percent to 189,000 vehicles. Meanwhile, sales in China are forecast to rise to 125,000 vehicles as the automaker adds localized production of the CX-50 in the world’s biggest car market.

It’s the dawn of a new era for Aston Martin as the luxury brand is preparing to introduce no fewer than eight models between now and 2026. A direct successor to the DB11 will lead the way, and today, we can share the first spy shots of the new Vantage in Roadster guise. How new is it? Well, it appears to be more along the lines of a facelift rather than a true next-gen car unless this is an early test mule instead of a more evolved prototype.

That’s not all too surprising since the DB11’s replacement has been caught looking quite familiar, so Aston Martin apparently doesn’t intend to massively change the designs of its cars. From what we can tell, the new droptop Vantage has a wider grille and completely new headlights with a sweptback layout. A prominent front spoiler lip is hard to miss, as are hood vents repositioned closer to the center. The rear looks virtually unchanged, provided the camo isn’t hiding some minor revisions.

While the exterior is still as stunning as ever, the interior could use a complete refresh and ditch the old Mercedes-sourced infotainment for a newer setup. With automakers moving away from physical buttons and knobs, the Vantage’s current cabin can be described as cluttered by comparison since it has quite a few traditional controls. Not that there’s anything wrong with that as some people (including yours truly) still prefer the good ol’ buttons.

As for the oily bits, Aston Martin has already bid adieu to the V12, so expect the new Vantage Roadster to get V8 power. We’ll remind you that the F1 Edition had 527 horsepower and 505 pound-feet (685 Newton-meters) of torque from a twin-turbo 4.0-liter V8.

Beyond its traditional front-engined machines, the folks from Gaydon are also working on the Valhalla and have not ruled out doing another wild hypercar to follow up on the Valkyrie. The real revolution will take place in 2025 when Aston Martin will introduce its first production EV.