Tag Archives: Government

NHTSA Opens Investigation into Tesla Gaming Software

Patton plays games driving Model 3
Journalist Vince Patton demonstrates its possible to play video games while driving his Tesla Model 3.

The National Highway Traffic Safety Administration (NHTSA) it is investigating 580,000 Tesla vehicles sold since 2017 that allow those seated up front to play games on the infotainment touchscreen while the vehicle is in motion.

The investigation stems from a complaint filed with agency earlier this month by Vince Patton, a retired journalist from Portland, Oregon.

The formal safety investigation, which was announced Wednesday, covers 2017-2022 Tesla Model 3, S, X, and Y vehicles. NHTSA opened the investigation “based on reports that Tesla gameplay functionality, which is visible on the front center touchscreen from the driver’s seat, is enabled even when the vehicle is being driven.”

Tesla made the software more dangerous

The 2021 Tesla Model S gets an all-new interior, a yoke-style steering wheel and the updated software being investigated by NHTSA.

The feature, known as “Passenger Play,” increases the risk of a crash. Since December 2020, the feature can be used while driving. Prior to that, it could only be used when the vehicle was in Park. The agency said that it is evaluating aspects of the feature, including how frequently it’s used and when.

NHTSA is concerned about distracted driving, an increasing risk as automakers bring increased online connectivity to infotainment touchscreens. Distracted driving caused 3,142 deaths in 2019, all of them preventable. 

While Passenger Play does have a warning stating the game is meant solely for passengers. Although it asks for confirmation that the player is a passenger and not the driver, there is nothing preventing the driver from playing while driving.

Other Tesla safety issues

Consumer Reports criticized the performance of Tesla’s latest version of Autopilot.

It’s not NHTSA’s only Tesla safety investigation, nor Tesla’s only safety issue.

In August, the agency opened a formal safety investigation of 765,000 Teslas equipped with its Autopilot driver-assistance system after 11 crashes involving parked emergency vehicles killed one person and injured 17. The inquiry covers 2014-2021 Models S, X, Y and 3. 

In October, Tesla had to roll back full self-driving, or FSD, with Musk revealing that the company is “seeing some issues with 10.3, so rolling back to 10.2 temporarily.” 

And in November, Tesla issued a recall for 11,704 vehicles sold in the U.S. since 2017. The recall covers Model S, X, 3 and Y vehicles and came about as a result of an over-the-air firmware update of the automaker’s “Full Self-Driving Beta,” its advanced driver assistance system.

The company identified a software communication error that could cause the forward-collision warning or automatic emergency brake system to falsely activate, possibly leading to a rear-end collision.

Other OEM infotainment issues

2022 Mercedes EQS 580 4Matic black daytime

The new Mercedes-Benz EQS was recalled after it was found that its MBUX system allowed television and internet to be displayed while driving

Other automakers are far more concerned over distracted driving than Tesla. On November 29, Mercedes-Benz recalled 227 vehicles in the U.S. after the company discovered that its MBUX infotainment system allowed television and internet to be displayed while driving.

The recall affected 2021 Mercedes-Benz S580, 2022 EQS450, EQS580, and S500 models. Mercedes-Benz has already corrected the problem, and no deaths or injuries seem to have resulted from the problem.

Musk pays billions to satisfy tax bill

In other Tesla news, Reuters is reporting that Tesla CEO Elon Musk sold 10% of his own company stock, 13.5 million shares, 8.06 million of which were sold to pay taxes. The billionaire said he is paying more than $11 billion in taxes this year. 

Tesla CEO Elon Musk

Tesla CEO Elon Musk slammed California over its tax policy.

“California used to be the land of opportunity and now it is … becoming more so the land of sort of overregulation, overlitigation, overtaxation,” Musk told Reuters, adding his combined federal and state tax rate tops 50 percent.

The tax bill may explain why Musk recently relocated Tesla’s headquarters to Austin, Texas from Palo Alto, California.

But taxes aren’t Musk’s only concern.

The company has submitted all the documentation required to get its factory approved near Berlin, Germany. Approval of Tesla’s newest manufacturing facility has been delayed by environmental concerns and red tape due to Tesla’s decision to add a battery factory to the site. That has delayed the approval process. It remains unclear when the new plant is expected to open.

Nikola Paying $125M to Settle with SEC

Nikola Corp. agreed to pay $125 million to settle civil charges levied against the company by the Securities and Exchange Commission claiming it defrauded investors by making false claims about its vehicles. 

Nikola CEO Trevor Milton t-shirt
Nikola’s settlement with the SEC still holds the company accountable for statements made by founder Trevor Milton.

The deal is separate from the civil and criminal charges against Trevor Milton, the company’s founder and now-former Chairman. In fact, the company’s agreed to cooperate with any current investigation and litigation, however, it didn’t admit or deny the SEC’s findings in the settlement.

The agency contends the company misled investors about the capabilities of its hydrogen fuel cell-powered vehicles, suggesting they were further along in development than they were. The focal point being a video of its Nikola One appearing to be driving under its own power, when it was actually rolling down a slight decline.

The video became the centerpiece of a report by short-selling research firm Hindenburg Research claiming Nikola was based on “intricate fraud built on dozen of lies” perpetrated by Milton. That quickly triggered an SEC probe and led to the decision by Milton to resign on Sept. 21.

Nikola agreed to pay the $125 million in five installments over two years. The first payment comes by the end of this year, with the remainder being paid in semi-annual installments in 2022 and 2023. The company previously disclosed Nov. 4, 2021 it took a $125 million reserve in its third quarter earnings to account for the expected settlement. 

Nikola Motor Chairman Trevor Milton

Nikola Motor’s former Chairman Trevor Milton is facing civil and criminal charges in court.

Milton not off the hook

Nikola “is responsible both for Milton’s allegedly misleading statements and for other alleged deceptions, all of which falsely portrayed the true state of the company’s business and technology,” said Gurbir Grewal, the SEC’s enforcement director, in a statement.

Milton saw civil and criminal charges filed against in July, claiming he used social media to repeatedly mislead investors about the company’s technology, netting “tens of millions of dollars” in the process. Milton’s repeatedly denied wrongdoing and is in the midst of a court battle.

Audrey Strauss, the acting U.S. Attorney for the Southern District of New York, said during a press conference in late July, Milton deliberately set out to deceive what she described as “retail investors” by making claims he knew were false about Nikola products.

While Nikola’s settled up with the SEC, it’s now focused on its former leader.

Nikola Tre Class 8 semi

The company’s attempting to move on from the problems. In fact, it delivered its first battery-electric Tre Class 8 rigs last week.

“The company has taken action to seek reimbursement from its founder, Trevor Milton, for costs and damages in connection with the government and regulatory investigations,” the company said in a release.

Moving forward

“We are pleased to bring this chapter to a close as the company has now resolved all government investigations,” the company said in a statement. 

“We will continue to execute on our strategy and vision to deliver on our business plan, including delivering trucks to customers, expanding our manufacturing facilities and our sales and service network, and building out our hydrogen infrastructure ecosystem including hydrogen production, distribution and dispensing stations.”

This is already happening as it delivered the first Nikola Tre battery-electric pilot trucks to Total Transportation Services Inc. (TTSI), a Southern California’s port trucking company, to expedite zero-emission transportation solutions at the ports of Los Angeles and Long Beach.

The company is engaged in a four-truck pilot program with the trucking company, involving two battery electric trucks with a range of 350 miles and two fuel cell-electric trucks with a range of 500 miles. If the vehicle trials go well and TTSI obtains government funding, the company will provide 30 BEVs in 2022, and 70 FCEVs are anticipated to start in 2023.


New IIHS Study Confirms Brighter Headlights Reduce Number of Nighttime Crashes

To the surprise of no one, a new study completed by the Insurance Institute for Highway Safety confirmed brighter headlights help reduce vehicle collisions.

Audi R8
In 2016, Audi’s new laser headlamps were brighter than conventional lights so the maker adjusted the lights to shine low and wide.

The organization noted the number of nighttime vehicle accidents are nearly 20% lower for vehicles with headlights earning a “good” rating in IIHS evaluation, compared with those with “poor” rated headlights. Vehicles IIHS rates as having “acceptable” or “marginal” headlights crash rates are 10% to 15% lower than for those with poor ratings.

“Driving at night is three times as risky as driving during the day,” said IIHS Senior Research Engineer Matthew Brumbelow, who conducted the study. “This is the first study to document how much headlights that provide better illumination can help.”

An evolving light 

Until recently, there was little need to evaluate headlights, as all cars used sealed beam headlights, a technology that became an industry standard by the 1940s. Like the lights in your home, sealed-beam and halogen headlights are incandescent. They use electricity to heat a bulb’s filament, which in turn produces light.

The addition of halogen gas in the 1960s allowed the headlight’s tungsten filament to generate a brighter light that lasted longer. In 1983, the Federal Motor Vehicle Safety Standard was revised, allowing for all composite headlight assemblies to have replacement bulbs. Yet overall, headlights had changed little since electric headlights first appeared on cars in 1898.

IIHS headlight crash reduction chart

That changed with the introduction of high-intensity discharge headlights, or HIDs. These are arc lamps, much like a neon sign, which produce light by the sparking an electrical arc between two conducting electrodes inside the bulb. Far more efficient than halogen lamps, they not only produce more light, but also use less energy and last far longer. 

Then, in 2004, the first LED headlights appear on the Audi A8. An LED a semiconductor that emits light when a current is passed through it, using far less energy than other types of bulbs. This led to the creation of LED Matrix headlights, which uses LEDs, sensors and cameras to light the road depending on road conditions. Now, automakers are starting to employ laser lighting, affording 1.25 miles of visibility.

Testing counteracts an outdated federal standard

Given evolving lighting technology, IIHS began evaluating headlight effectiveness in 2016 to counteract the federal government’s outdate lighting standard, one that considered all headlight types equal. The problem is, they’re not. Five years later, IIHS has rated approximately 1,000 different headlights, bestowing them with the same good, acceptable, marginal and poor ratings used for the crash test evaluations.

The IIHS’s new study shows that good-rated reduces driver injuries in crashes by 29% and the rates of tow-away crashes and pedestrian crashes by about 25%.

“Better scores in our headlight tests translate into safer nighttime driving on the road,” said IIHS’s Brumbelow. 

Despite the changes in headlight technology, the Federal standard for automotive lighting hasn’t changed significantly since 1968. What’s worse, the standard specifies minimum and maximum brightness for headlights without taking into account how well it is installed. The standard also lacks any regulations for newer technology, such as curve-adaptive headlights. 

To address such failings, the IIHS’s evaluation of vehicle lighting are done while driven on a test track. Performance varies considerably; current low beam headlights illuminate anywhere from 125 feet to 460 feet. That’s a difference of as much as 6 seconds when driving at 50 mph. The tests have compelled OEMs to improve the quality of their lighting, IIHS says. 

“Our awards have been a huge motivator for automakers to improve their headlights,” Brumbelow says. “Now, with our new study, we have confirmation that these improvements are saving lives.”

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Vaccine Mandates Being Considered By Auto Industry, UAW

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Michael Vi/Shutterstock

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With the Biden administration having announced that it would start requiring companies to vaccinate employees, automakers and UAW are finding themselves in a sticky situation. Unions had previously said they wanted to hold off on endorsing or opposing mandatory vaccinations until after they discussed things with the industry and their own members. Considering Joe Biden said he wouldn’t make vaccines mandatory less than 10 months ago, employers are getting caught with their pants around the proverbial ankles.

Automakers had previously been surveying white-collar workers to see what they wanted to do while upping on-site COVID restrictions, but operating under the impression that any hard decisions were likely a long way off and left entirely to their discretion. Now the Department of Labor’s Occupational Safety and Health Administration is planning a new standard that requires all employers with 100 (or more) employees to guarantee their workforce is fully vaccinated or require any unvaccinated workers to produce a negative test result on a minimum weekly basis. 

Employers that fail to implement the stated requirements could face fines of nearly $14,000 per violation, according to the White House, with penalties also doubling for those who refuse to wear masks during interstate travel. Those are potentially steep fees when you’re employees number in the thousands. Union officials have said they’re considering the matter without committing to more than absolutely necessary — though the UAW officially opposed vaccine requirements in the past.

From UAW President Ray Curry:

“The UAW has and continues to strongly encourage all members and their families to be vaccinated unless there is specific health or religious concerns. We know that this is the best way to protect our members, coworkers and their families.

We are reviewing the details of yesterday’s announcements and the impact on our members and our over 700 employer contracts.

In the meantime, we continue our member commitment to practice safety in every one of our worksites by following protocols including masks, sanitizing and reporting any exposure or symptoms of the virus. At the UAW we all understand that fighting this pandemic and protecting our families is key to our survival.”

Assuming the union ultimately decides to endorse the vaccine decree, it’s likely going to be fracturing its membership. While I am hardly against vaccinations, I strongly support informed consent and speaking candidly about this has resulted in autoworkers frequently confessing they’re similarly opposed to forced vaccinations. Many have said they would immediately quit their jobs, matching a recent Washington Post poll claiming 70 percent of unvaccinated workers would simply abandon their positions if vaccine mandates are instituted. It’s my assumption that the industry will have a sudden, catastrophic staffing shortage were it to move forward with the Biden plan.

Automakers have been similarly noncommittal, with manufacturers (including Ford, GM, Stellantis, Honda, and Toyota) stating they encourage staff to get vaccinated and want to adhere to all government-issued health protocols. But they typically steer clear of addressing the Biden plan directly, possibly indicating some hesitancy. That said, it hasn’t even been a full day since the vaccine mandate was announced and their HR and legal departments are probably wringing their hands as they ponder upon what’s to be done and the fallout it might create.

Every statement automakers have been willing to make thus far can be paraphrased into “hold on … we’ve got to think about this,” followed by a paragraph about how they believe in vaccinations and want to adhere to recommendations coming from the relevant health experts. Conversely, very little has been said about the rights or preferences of their employees.

I’m not going to beat around this bush. The entire premise of these mandates seems insane to me, bordering on wicked. As an American, I always thought the whole premise of the country was predicated upon the shared belief that personal liberties and freedom of choice trump everything else. But that doesn’t seem to be what’s coming down from the top anymore. The rhetoric being used by Joe Biden is egregiously confrontational, including statements like “we’ve been patient, but our patience is wearing thin” as he made sweeping assertions about how the unvaccinated are stifling national unity and progress. He also confusingly stated that vaccinated workers need to be “protected” from the unvaccinated.

Assuming vaccines are effective, shouldn’t it be the other way round? What exactly are we shielding people from when new strains continue to manifest, can still be spread amongst the vaccinated, and the shots we currently have are targeting older COVID variants that have lost steam?

The economic and social stress this is likely to place upon the industry and country as a whole will be nothing short of monumental. Protests have been erupting across the globe all summer. Truckers have started organizing in numerous countries and have refused to deliver to areas imposing strict COVID rules, exacerbating food shortages in urban areas. In the United States, the same was true for cities that opted to defund police departments. Now they’re starting to talk about strikes focused on vaccine and mask mandates while they’re already experiencing a severe shortage of drivers. Imagine if that spills over to an automotive sector that’s already been beleaguered by the semiconductor shortage, their suppliers, and every other industry you rely on.

[Image: Michael Vi/Shutterstock]

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EPA Proposes U.S. Average Fuel Economy at 52 mpg by 2026

The Environmental Protection Agency revealed the hard numbers behind President Joe Biden’s push for cleaner cars: 52 mpg. That’s the new average fuel economy standard the agency is mandating automakers hit by 2026. 

Vehicles driving emissions
The EPA wants average fuel economy of vehicles on U.S. roads to be 52 mpg by the 2026 model year.

In the near term, they’re pushing for a 10% improvement by 2023. The new proposals, for which the EPA is now accepting public comment, represent a stricter mandate than the Trump administration’s rolled back requirement.

“Today, EPA takes a major step forward in delivering on President Biden’s ambitious agenda to address the climate crisis and create good paying, union jobs,” said EPA Administrator Michael S. Regan in a statement.

“These robust standards are underpinned by sound science and technical expertise, encouraging the development of technology and innovation that will drive America forward into a clean energy future. We are excited about building on the partnerships with states, cities, industry, labor, and NGO stakeholders to realize this vision together.”

Stiffer mandate

The new rules mean automakers would need to improve their numbers for the 2023 model year by 10%, then for each model year after that until 2026, the agency calls for a 5% improvement. Officials also noted they would begin discussing 2027 and beyond soon.

According to the EPA, these new regulations would reduce carbon dioxide emissions by 2.2 billion tons by 2050. That elimination of emissions equate to a year of greenhouse gas emission from all petroleum combustion since 2019 in the U.S.

Additionally, the agency claims motorists save between $120 billion and $250 billion in fuel costs between now and 2050, reducing the overall amount vehicle owners spend during their vehicle’s lifetime.

Heavy duty trucks aren’t exempt

The agency also revealed it was working on plans to reduce greenhouse gas emissions from heavy duty trucks. The rules for those vehicles aren’t due until 2022 and won’t apply until 2027. When they do begin, it’ll be a three-year cycle before then next round of regulations take effect.

“Pollution from trucks has been a long-standing obstacle to advancing environmental justice, as many low-income and minority communities live near highways or in heavily polluted areas with frequent truck congestion and idling,” Regan said in a statement.

“EPA is committed to walking our talk and delivering tangible benefits to historically underserved and overburdened communities. Setting clear and stringent standards for truck pollution is critical to delivering on this commitment.”

UAW Reaches Corruption Settlement With Justice Department

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Image: UAW

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The U.S. Department of Justice has reached a proposed civil settlement with the United Auto Workers (UAW) in the gigantic corruption case that absorbed two former presidents and a slew of union officers over the last few years. With many involved already serving the first part of their prison sentence, the UAW has reportedly agreed to hold a referendum among the rank-and-file to change the way it elects the top brass. The proposal predictably includes some court oversight designed to catch any new instances of fraud coming from inside the union but doesn’t appear to address the corporate aspect.

As a positive, it’s not assumed that the union will see a complete government takeover. Like laundry, it’s already better to separate your alleged corruption to create legal buffer zones.

Obviously, we’re fairly skeptical that the settlement will do much in the long run. Union bribery scandals are only slightly more common than union busting scandals perpetrated by the corporations they do business with and the wait is never as long as you think. But it could delay the next round of impropriety if implemented with the same seriousness as the investigation appeared to be.

The proposal suggests that an independent monitor could ensure reforms are adhered to “so as to reduce the possibility of a recurrence of corruption.”

An official announcement is planned Monday afternoon by U.S. Attorney Matthew Schneider and UAW President Rory Gamble, according to a press release from Schneider’s office. While no additional details have been provided, the Associated Press suggested Schneider, whose office has been investigating union corruption since 2015, was seeking a temporary government takeover of the UAW. At a minimum, he’s been pushing for direct voting by members to elect union leadership (rather than delegates) and has even expressed concerns over its current leadership.

Schneider has said he’d like to see the matter settled by January in the past and the issue may become even more important as the possibility of his being replaced (as a Trump appointee) under a Biden presidency.

Eleven union officials (including two former presidents) and one deceased official’s spouse have pleaded guilty since 2017. Some of the earliest convictions also roped in Fiat Chrysler employees taking funds from an FCA-UAW training center in Detroit. While not all of the instances were connected, they did kick down the door to expand the investigation and showcase how liberal the union had been with its finances.

From AP:

Former UAW President Dennis Williams in September pleaded guilty in the government’s investigation, and his successor as president, Gary Jones, pleaded guilty in June.

Williams, 67, was president from 2014 until he retired in 2018. He was accused of conspiring with others to cover up the source of cash for expensive meals, cigars and large expenses.

The union’s Region 5 leadership, which was based in Missouri and headed by Jones, would hold weeklong retreats in Palm Springs and invite Williams along. He said he stayed beyond “what my union business required.”

Williams told a judge that he wondered if money was being misused but that he was assured by Jones that “everything was above board.”

Expect more once the terms of the settlement have been ironed out.

[Image: UAW]