Nevada to Have First Autonomous Trucks in America

Daimler Trucks North America is the first to get approval for self-driving commercial vehicles in the United States. The Freightliner Inspiration Truck, and other trucks like it, could have massive implications for the future of transportation. The Inspiration truck features a system called Highway Pilot, which uses stereoscopic cameras and radar sensors to give it an autonomous autopilot mode when cruising on the highway. The truck can steer to stay between lane markers and adjust its speed and braking to maintain a safe following distance behind other cars on the road all while the driver is free to do other things.

It’s considered a “level 3” autonomous vehicle, meaning it enables hands-off highway driving under certain circumstances, but requires a driver to be present, ready to take the helm in an emergency or to pass other vehicles in the truck’s path. The driver is likewise required to assume control of the vehicle when exiting the highway, driving over local roads and pulling up to the loading dock for making or taking deliveries.

For the record, a “level 4″ vehicle would be able to perform all driving functions and monitor roadway conditions for an entire trip, truly freeing up the valuable resource of human time.

Daimler executives are being careful to allay fears of human employment disruption. “We don’t want to get rid of drivers,” says Sven Ennerst, head of Daimler Trucks’ development department. Daimler continues by repeatedly saying the technology won’t can’t change lanes on its own, it won’t be market-ready for a decade, and could never fully replace human drivers.

The reality remains that that it is a big step towards addressing a massive market need: safe and reliable transportation.

Some large freight carriers have already started incorporating innovative new safety features like blind spot monitoring, adaptive cruise control, and lane departure warnings. The economic case for these technologies is clear.

“Commercial vehicles are a safety issue,” says Xavier Mosquet, head of Boston Consulting Group’s North America automotive division. “And therefore anything that can get commercial vehicles out of trouble has a lot of value.”

With America's driver shortage continuing to worsen, good truck drivers cost more these days. Costs are also rising for companies that cut corners and hire unsafe drivers. Liability in a commercial truck accident is increasingly falling on the shipper.

HWP - Highway Pilot

In order to get the autonomous vehicle license plate from the state of Nevada, Daimler needed to prove the system could safely cover 10,000 miles on its own. This was done on test tracks in Germany and on quiet roads in Nevada.

Daimler ran a small study (16 drivers on a test track) to see how this autonomous system affects drivers. EEG readings showed they were 25 percent less tired than they were when they had to steer themselves.

Customers are very much interested in this system, according to Daimler. That’s no surprise: Making driving a job for the computer can reduce accidents, improve fuel efficiency, and maybe keep trucks on the road for longer, says Noël Perry, an economist who specializes in transportation and logistics. “They all love this.”

Additional Reading:

http://www.newscientist.com/article/dn27485-autonomous-truck-cleared-to-drive-on-us-roads-for-the-first-time.html#.VVDGtNNVhBd

http://www.wired.com/2015/05/daimler-built-worlds-first-self-driving-semi/

Volvo Plant in U.S.

State to be chosen in a month; car maker says labor rates are just part of it

Written by John D. Stoll of The Wall Street Journal

After years of losing out to Mexico in the race for new automotive assembly plants, the U.S. is about to notch a victory.

Volvo Car Corp., owned by a Chinese company, will spend $500 million to build a new vehicle plant in the U.S. The decision comes weeks after Daimler AG plans to spend a half-billion dollars to build a Mercedes-Benz van factory in South Carolina, a move that followed a string of auto makers choosing to locate new factories in Mexico instead of the U.S.

In an interview, Chief Executive Håkan Samuelsson said Volvo is making the move to smooth out its international presence. With plants in Europe and China, the executive wants a North American factory to be closer to one of its prime markets, take advantage of attractive labor rates and protect against currency fluctuations.

“This will complete our industrial footprint,” Mr. Samuelsson said. Volvo is also aiming to reiterate its commitment to the U.S., a market it has been in since 1957. In recent years, Volvo has struggled to sell cars in the U.S., forcing the auto maker to adjust its strategy several times.

Mr. Samuelsson said Volvo is still considering a handful of states for its new factory, and will announce its pick in about a month. The plant will build vehicles off the company’s new “SPA” platform, an engineering architecture that will serve as the blueprint for several vehicles, including the new XC90 SUV hitting the market this year.

Volvo, bought by Zhejiang Geely Holding Group Co. in 2010, sold 466,000 vehicles in 2014, a record amount of cars globally. But momentum has come from gains in China and Europe; U.S. sales fell 8% to 56,000—short of the 100,000 vehicles Mr. Samuelsson says the brand needs to prove viability.

Mr. Samuelsson said there is no current plan to share the plant with Geely. Volvo is, however, working with its partner on developing small cars, and the factory could eventually be an avenue for the Chinese auto maker to distribute cars in the U.S.

For now, Mr. Samuelsson is working to freshen the product lineup, boost marketing spending and offer better financing options.

Some European auto makers have been successful at capping labor costs in the U.S. Volkswagen recently opened a plant in Tennessee, and its hourly labor rate—including benefits—equals $38 an hour, $10 less than Fiat Chrysler Automobiles and $20 less than General Motors Co.

Volvo’s move stems the tide of investment aimed at Mexico, where labor rates are a fraction of the U.S. costs. Auto makers and parts suppliers have earmarked more than $20 billion of new investments, with many executives citing an array of free-trade pacts as the reason for the decisions.

Mr. Samuelsson said Volvo considered Mexico, but the benefits of building cars in the world’s most-profitable market tipped the decision in America’s direction.

Write to John D. Stoll at [email protected]

Self-Driving Cars in 30 U.S. Cities by 2017

There will be driverless buses and pods as well.

By Sage Lazzaro | 03/05/15 10:47am

Originally appearing in the Observer

Finally, we can put up our feet and let computers take the wheel.

Automated vehicle pilot projects will roll out in the U.K. and in six to 10 U.S. cities this year, with the first unveiling projected to be in Tampa, Florida as soon as late spring. The following year, trial programs will launch in 12 to 20 more U.S. locations, which means driverless cars will be on roads in up to 30 U.S. cities by the end of 2016. The trials will be run by Comet LLC, a consulting firm focused on automated vehicle commercialization.

“We’re looking at college campuses, theme parks, airports, downtown areas—places like that,” Corey Clothier, a strategist for automated transportation systems who runs the firm told, The Observer.

He explained that they’re focusing on semi-controlled areas and that the driverless vehicles will serve a number of different purposes—both public and private. The vehicles themselves—which are all developed by Veeo Systems—will even vary from two-seaters to full-size buses that can transport 70 people. At some locations, the vehicles will drive on their own paths, occasionally crossing vehicle and pedestrian traffic, while at others, the vehicles will be completely integrated with existing cars.

What would happen if you combine driverless cars with an on-demand service like Uber? One study says it would make nine out of ten cars on every road totally obsolete.

One of the early test sites will be the U.S. Army’s Fort Bragg in North Carolina. There, small pod-like vehicles will transport wounded troops from their barracks to the nearby hospital for treatment and check-ups. The Comet team is also planning a pilot project at The United States Military Academy at West Point, although Mr. Clothier said this site has not been finalized.

An automated vehicle system will also be implemented at Stanford with its first purpose being to provide transportation around their SLAC National Accelerator Laboratory campus. Scientists and academics travel from all over the world to visit the center, and the first application of the automated vehicle system will be to transport visiting scientists to the accelerator.

At the first test site in Tampa, the plan is to start with public transit around the Museum of Science and Industry and eventually expand to the University of Southern Florida campus and the neighboring City of Temple Terrace. The Comet team is also planning trials in two other cities in Florida; Greenville, South Carolina and Seattle, Washington, where the 70-person buses will be used in public transit.

At 25 to 40 percent cheaper, the cost to ride the driverless public transit vehicles will be significantly less expensive than traditional buses and trains, according to Mr. Clothier. They’ll also be far less expensive to operate. The vehicles are electric, rechargeable and could cost as low as $1 to $3 to run per day.

In addition to these first trials of automated vehicles for commercial use in the U.S., the U.K. will begin running tests this year in Greenwich, London as well. The $9 million project called GATEway will consist of public self-driving shuttles that will link residents to transport hubs, The O2 Arena and other destinations in northern Greenwich, carrying eight to ten passengers at a time.

Greenwich was chosen for the Project—which is being led by the U.K.’s Transport Research Laboratory (TRL)—because, since it’s home to the Prime Meridian.

“It is the global reference point for time and links to navigation,” Nick Reed, the TRL academy director, said. “It also has a massively growing population, so we’re trying to meet the needs of that with the technology.”

Upon entering the shuttles, each passenger chooses from the pre-determined destinations on the touch screen, and then the computer determines and readjusts the route as riders hop on and off. Each vehicle uses lasers to build up an image of the route and determine where it is and where it needs to go.

These shuttles will drive along their own route but must cross pedestrian and vehicle traffic at times. The lasers will also enable the cars to determine when it’s safe to cross and also to spot obstructions. At a recent launch event, the vehicles proved how safe they are and how well they can sense obstructions and the world around them.

“You can image a lot of the journalists wanted to see this thing run into pedestrians, so they were almost jumping in front of it,” Mr. Reed said laughing. “But it was doing what it was supposed to do and stopping.”

He also explained that these shuttles are only the first part of the trials. They’re also working on autonomous valet parking that would enable drivers with ordinary cars to pull up to their destination, send their car to park itself and then summon it later. Additionally, they’re beginning to research how automated vehicles can be used for grocery delivery and other urban services.

Mr. Reed feels that this technology won’t completely replace today’s cars and trains, but that it is disruptive and will be the norm soon.

He described his first experience in a driverless vehicle as feeling “vulnerable at first,” but said that it quickly became very comfortable.

“It’s a bit unnerving to begin with because you realize the system is in control and you’re relying on the sensors and brakes to keep you safe, but very quickly after seeing it respond to pedestrians and such, you see it work and become very comfortable. I became relaxed even,” he said, adding how happy we’ll all be to be able to just watch Netflix while our cars drive us around.

Mr. Clothier, who has been riding in automated vehicles since their military-only days and has even been passenger to a computer among semis driving at 65mph on a Michigan highway, feels similarly.

“It’s a whole new thing, but it will be comfortable,” he said. “People are very comfortable riding in [them]. It’s kind of like an elevator: you go in, put in your destination, the doors close and you’re off.”

SEE: Mercedes-Benz’s New Car Is Driverless

Correction: The SLAC National Accelerator Laboratory participated in the Smart America Challenge as a possible future pilot site but a trial is not set to run there at this time.

Apple's Auto Ambition

Reports over the last couple weeks show growing evidence that Apple is gearing up to create an electric vehicle. Apple has already hired more than 60 former Tesla employees. Tesla Motors CEO Elon Musk says Apple has been offering his engineers a 60% salary increase and $250k signing bonuses.

Apple has also recruited Johann Jungwirth away from his position as head of Mercedes-Benz’s Silicon Valley R&D unit.

According to a new report from Tim Higgins of Bloomberg, the company’s car team is planning to launch the electric vehicle by 2020.

Higgins adds that the company has additionally hired former engineers of Panasonic Corporation, Johnson Controls Inc, LG Electronics Inc., A123 Systems and others.

The Bloomberg report speculates Apple is speedily designing an electric vehicle that can be marketed to the masses - a car with a range of over 200 miles on a single charge and a price tag of less than $40,000.

Barclays said in a research note that the electric car market is worth $16 billion a year, and will grow to $71 billion by 2021.

Apple has plenty of cash on hand after several consecutive quarters of very high profits. They would be wise in diversifying and investing in the future. While some analysts deride this strategy by pointing to low margins in electric vehicles, Apple's bigger play could be the use of connected cars as a platform, similar to the iPhone and the Appstore.

Though connected cars make up less than 10% of auto sales today, their share is expected to skyrocket to 80% by 2020.

A even larger opportunity exists with the advent of self-driving technology. Think about all the hours people spend driving their cars. What is that time worth? What else could people be doing with that time? The answers to these questions could be worth trillions of dollars.

With Google, Uber, and traditional car manufacturers working on autonomous driving vehicles, it could very well become a reality by as soon as 2020. Reuters says it has learned from industry sources that Apple’s secret project involves self-driving electric cars.

In 2021, will people be listening to Tesla's Slacker Radio, Google Play Music, or Apple's iTunes Radio?

Hidden Code May Reveal the Secret of Tesla's 'D'

Rumors and speculation have been following Elon's hint at a mysterious Tesla announcement during tonight's 7PM press conference.

About time to unveil the D and something else pic.twitter.com/qp23yi59i6

— Elon Musk (@elonmusk) October 2, 2014

As originally reported by Angelo Young of the International Business Times, some clever digital investigation into Tesla's website's javascript coding reveals a “Dual Drive Motor” which seems to be suggesting the 'D' may stand for an All-Wheel Drive or Dual-Motor version of the Model S. There's also “Driver’s Assistance” mentioned in the javascript, which sounds like it could be a sort of smart cruise control or crash protection. The fully-featured vehicle will possibly be called the P85D, based on this photographic evidence.

ENHANCE.....

Tesla has already promised consumers an AWD SUV known as the Model X - though that may or may not be the ‘something else’  to which Musk was referring.

Nevada Wins Tesla Gigafactory

Elon Musk and Telsa Motors have been shopping around the US looking for the ideal location for the Gigafactory - Tesla and Panasonic's massive lithium ion battery manufacturing venture. Congratulations to the state of Nevada for winning the site selection. It's an exciting manufacturing plant (the world's largest lithium ion production facility) during an exciting time in the life of Tesla Motors - The company's stock was just given a $400 target price by market analysts.  Stifel Nicolaus analyst James Albertine compared investors’ enthusiasm for Tesla stock with a “freight train.”

“While there are no fewer than a half-a-dozen other key concerns we share with industry purists, the reality is, these issues simply do not matter with respect to Tesla’s stock,” Albertine wrote in a letter to clients. “Tesla sentiment is like a freight train, in our view, benefiting from a well manicured growth story that has caught the eye of a much broader investor base relative to most auto stocks.”

The stock reached $290 per share yesterday, following upbeat second-quarter results. The electric car maker is on target to achieving an annual rate of production of 100,000 cars by the end of next year, doubling its current rate. More inroads are being made in China which are also contributing to the string of records.

The Gigafactory is an important step in the company's growth path as it prepares to mass-produce a $35,000 model by 2107.  The facility looks like it will reach 50 GWh in annual battery production by 2020, which is enough to power 500,000 of Tesla's cars.  Nevada, while offering a $1.25 billion tax incentive package, will be gaining significant capital investment and around 6,500 jobs. Governor Sandoval said at the announcement that the agreement will add up to $100 billion to Nevada's economy over the next 20 years. Check out the full Gigafactory Press Release below.

THURSDAY, SEPTEMBER 4, 2014

CARSON CITY, NV – Governor Brian Sandoval and Elon Musk, Chairman and CEO of Tesla Motors, announced today that Nevada has been selected as the official site for the Tesla Gigafactory.

“This is great news for Nevada. Tesla will build the world’s largest and most advanced battery factory in Nevada which means nearly one hundred billion dollars in economic impact to the Silver State over the next twenty years. I am grateful that Elon Musk and Tesla saw the promise in Nevada. These 21st century pioneers, fueled with innovation and desire, are emboldened by the promise of Nevada to change the world. Nevada is ready to lead,” stated Governor Brian Sandoval.

“I would like to recognize the leadership of Governor Sandoval and the Nevada Legislature for partnering with Tesla to bring the Gigafactory to the state. The Gigafactory is an important step in advancing the cause of sustainable transportation and will enable the mass production of compelling electric vehicles for decades to come. Together with Panasonic and other partners, we look forward to realizing the full potential of this project,” said Elon Musk, Chairman and CEO of Tesla Motors.

“On behalf of the State of Nevada, I would like to acknowledge this monumental day and provide my initial support. This is a significant opportunity to make a major stride to improve our statewide economy. I look forward to receiving the necessary information so the Legislature can meet and take necessary action to support this major industry coming to Nevada,“ stated Speaker Marilyn Kirkpatrick.

http://www.teslamotors.com/about/press/releases/nevada-selected-official-site-tesla-battery-gigafactory

Self-Driving Trucks & Automated Transportation

What if trucks could drive themselves? As automation technology proves to be reliable, the adoption of self-driving vehicles will continue to occur. The impacts on the economy could be massive. The UK may begin testing self-driving trucks in 2015. According to The Sunday Times, UK ministers recently visited Sweden to witness the technology in action and are making plans to bring it to the UK.  Advocates say the technology could increase fuel efficiency and make better use of human time.

Some proposed systems, such as Volvo's SARTRE road train system, would have vehicles driving tightly together in a caravan using Wi-Fi, infrared cameras, and laser sensors to keep vehicles at a safe distance from each other.  Each vehicle would have a driver in it, though only the front driver would be steering. The other "drivers" could be working on administrative tasks - or eating lunch. While governments and companies are starting out slowly, the eventual result could very well be fully driverless vehicles. This could also be useful for America's economy, as the American Trucking Associations (ATA) estimates that the U.S. is short 30,000 truck drivers. 

In the United States, Google has been the most outspoken proponent of self-driving technology. Their prototype (built from the ground up) goes further and foregoes the steering wheel, mirrors, and pedals found in most of today's vehicles. Their project is focused on human transport, ostensibly so people that used to spend time driving can spend more time using Google's internet services. Uber's $17 billion valuation shows that applied innovation in human transport can be quite profitable for entrepreneurs and their investors. Now imagine automating the most expensive aspect of Uber's business model: the drivers. While some people fear the safety of such auto-mobiles, advocates of self-driving vehicles point to the current rate of human driver error (~40,000 vehicle related deaths in the US each year) and want to push for dramatic safety improvements through well-designed automation.

While the ride-sharing & taxi industry will be attractive, the real prize could be in supply chain logistics.  Global shipping is worth trillions of dollars, and margins could be improved with this new technology. The last couple decades have seen container ships greatly increase in size in order to achieve better economies of scale. The BBC talked with Matt Collette, who teaches ship design at the University of Michigan. He says, “There are two primary drivers for automation,” says Collette. “One is that human beings are not very good at long repetitive tasks. That’s when you see lapses in concentration that lead to the ship getting into a collision or running aground,” he explains.

“Automation could reduce those types of accidents significantly, because the computers have no problem paying attention for a two-month voyage.”

In the 20th century, Malcolm McLean helped adopt the standard size and shape of shipping containers. Although a simple invention, containerization drastically lowered the costs of shipping around the world. Some economists find evidence that the shipping container has done more for global trade than every trade agreement signed in the past 50 years. Now, with automated transportation, the economics of international trade may be revolutionized yet again in the 21st century. 

Tesla Could Upend Utilities

Morgan Stanley, a major investment bank, thinks the utility industry underestimates the potential of Tesla Motors ability to achieve dramatic reduction in battery storage costs. This breakthrough could potentially convince more people to go off-grid. In their detailed report released in late July, Solar Power & Energy Storage, Morgan Stanley says, "Energy storage, specifically Tesla’s product, could be disruptive in the US and Europe. Given the relatively high cost of the power grid, we think that customers in parts of the US and Europe may seek to avoid utility grid fees by going “off-grid” through a combination of solar power and energy storage. "

“We believe there is not sufficient appreciation of the magnitude of energy storage cost reduction that Tesla has already achieved, nor of the further cost reduction magnitude that Tesla might be able to achieve. once the company has constructed its “Gigafactory”, targeted for completion later in the decade.“

While the costs of the utility networks are fixed and rising, the costs of these new disruptive technologies will continue to fall, and they're falling quicker than the incumbents realize.

Most battery manufacturers, the report notes, have a capacity of around 40MW to 50MW per annum. Tesla is proposing one of 1,000MW – and possibly many more. This, says Morgan Stanley, will slash the capital cost of Tesla’s battery from the current $250/kWh to $150/kWh by 2020, whereas its closest competitor will be at a cost of ~$500/kWh.

Morgan Stanley canvasses three types of approach to the arrival of storage:

On the grid, but net zero grid power usage. Under this approach, a customer’s solar panels produce excess power during the day (which is sold back to the grid), and at night the customer draws power from the grid. This approach could result in low or net zero usage of power produced by large-scale power plants attached to the grid.

On the grid, partial grid power usage. This approach is often taken in Europe, where solar panel systems are not sized to fully allow customers to eliminate their net usage of power from the grid, and where economics and regulation mean moving fully off-grid is very unlikely. It is thus unlikely that such customers pursue a fully off-grid approach.

 Fully off the grid. In this approach, consumers fully depend on their on-site power generation, using storage and a power management system to provide power to the home when needed. Consumers could choose this approach for a number of reasons. For instance, in select markets, customers who choose to “net meter” as in the “on-grid” approach described above, have to pay a large non-bypassable, fixed grid charge; these consumers have an incentive to go fully off the grid.

“By 2028, we estimate Tesla’s 3.9 million units NA car population (or “park”) will have an energy storage capacity of 237 GW (443 GW globally), equal to 22% of today’s US production capacity and nearly 10x larger than the entirety of US grid storage that exists today. These figures exclude any recycled (2nd life) battery after EV use."

"Tesla Model S (85 kWh) can store enough energy to power the average US household for 3.5 days."

Tesla and Panasonic are Changing the Auto World

Panasonic agrees to partner with Tesla on the new Gigafactory.  Tesla Motors has a bold vision of mass-producing electric vehicles. According to this week's press release, the Gigafactory is being created to enable a continuous reduction in the cost of long range battery packs in parallel with manufacturing at the volumes required to enable Tesla to meet its goal of advancing mass market electric vehicles. Even though customers are still lining up to get a Model S (which costs between $70,000 - $100,000), the company is now focusing on reducing costs in order to make the SUV Model X and the company's third production vehicle, which is being aimed at a wider audience.  At around $35,000, the Model III can compete with the BMW 3-Series and Mercedes-Benz C-Class sedans. With both companies looking for innovative ways to mass-produce Lithium-Ion batteries, this joint venture combines complementary expertise and resources. Tesla will provide the location and facilities and Panasonic will install the manufacturing equipment, machinery, and tools in the new U.S.-based factory. Though Panasonic's exact financial contribution has yet to be determined, Tesla has estimated the factory will cost up to $5 billion by 2020.

“We will reach a plan that is profitable,” Panasonic Chief Financial Officer Hideaki Kawai said at a news conference in Tokyo. “We will do step-by-step investment to meet the gradually growing needs.”

The Economist writes that the Model III is expected to almost match the nearly 300-mile range of the bigger Model S, without taking as long to charge up. To do that and hold the selling price down won’t be easy. Industry analysts believe that the 85 kilowatt-hour lithium-ion battery now used in the Model S costs Tesla almost as much as the $35,000 at which it plans to sell its smaller sedan.

 JB Straubel, Chief Technical Officer and Co-founder of Tesla Motors says, "the Gigafactory represents a fundamental change in the way large scale battery production can be realized. Not only does the Gigafactory enable capacity needed for the Model 3 but it sets the path for a dramatic reduction in the cost of energy storage across a broad range of applications."

Bloomberg reports Panasonic shares rose 0.6 percent to 1,257.50 yen in Tokyo. Tesla slid 0.8 percent to $227.13 at 10:37 a.m. in New York, and had surged 52 percent this year through yesterday.

Read the Full Press Release Here:  http://www.teslamotors.com/about/press/releases/panasonic-and-tesla-sign-agreement-gigafactory

Connect & Collaborate - Natural Gas Vehicles

The transition from gas-guzzling cars to a friendlier fuel source hasn't been easy. We've been talking about electric cars, solar-powered cars and alternative fuels for more than twenty years. While there have been some great successes, no single technology has swept the nation just yet. Recent estimates of abundant natural gas reserves in the United States was a great incentive to push engineers and designers to bring natural gas vehicles to market. Among the complications, are the challenges of meeting the rigid and numerous requirements of EPA standards... followed by access to natural gas refueling stations. Tough, but not insurmountable.

In this week's Energy 101 session on Connect & Collaborate, we talk with Steve Rayborn of Alkane Trucking Company, where they are working to change the face of the American Economy by using Natural Gas Technologies. They've created a parent company called Noble Automotive, and their goal is to bring to market, a series of small cars, pick-ups and SUVs that run on compressed natural gas.

The result, a vehicle line under the name Valor Motors. It's first vehicle, the Seer, is a compressed natural gas vehicle to be introduced officially, At the at the International Propane Conference and Expo, in Atlanta, Georgia,  April 13-15 2013.

Alkane is also making strides in the development of propane-powered vehicles, listen and learn about these new technologies and how to get three years of free fuel when you buy a natural gas vehicle!

We talk with Steve Rayborn of Alkane in our first half hour, followed by Jan and Kelly with a review of their Energy 101 segments so far this year.

Listen to the entire Connect & Collaborate program this Saturday at 10:00 AM on KNUS 710 – or download our podcast – you’ll find it at the top of this article.