Car Cybersecurity Study Bill Introduced in Congress
Posted on Nov 5, 2015
Two congressmen introduced the “Spy Car Study Act” in the House of Representatives in reaction to news of potential hacking of vehicle software. This proposed legislation calls for the National Highway Traffic Safety Administration, the Federal Trade Commission, and other groups to conduct a study of best practices in the areas of cybersecurity and privacy as it relates to cars. The results of the study would be used to regulate cybersecurity in US-built cars. To view the full article, visit Law360 (subscription required).
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Takata Share Prices Fall As Auto Makers Signal Avoidance of Takata Air Bags
Posted on Nov 5, 2015
After Mazda, Subaru, and Mitsubishi automakers indicated that they would no longer use Takata air bags, Takata Corp. experienced a drop in its share price of approximately 25%. The announcements all followed the determination by Honda that it would no longer use Takata air bags in new vehicles, as well as a settlement with the National Highway Traffic Safety Administration. The announcements by these automakers raise questions about the necessity of Takata’s air bag inflators and the company’s long-term viability. To view the full article, visit The Wall Street Journal (subscription...
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Honda to Stop Using Takata Air Bags
Posted on Nov 5, 2015
Honda decided that it will stop using Takata air bags in new vehicles after reviewing millions of pages of internal Takata documents and determining that test data for certain air bag inflators was misrepresented or manipulated. The decision by Honda follows a $200 million fine imposed on Takata by the National Highway Traffic Safety Administration (“NHTSA”). Takata agreed to pay $70 million as part of a settlement, admitting that it failed to alert the NHTSA of the defect—which has been linked to eight deaths and injuries to approximately 100 drivers—despite the company’s awareness of it....
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Auto Loans At All Time High
Posted on Nov 4, 2015
The amount borrowed by Americans to pay for vehicle purchases climbed to a record high of $968 billion in the third quarter. Higher vehicle prices and an increase in auto sales, up 5.8 percent from a year ago, have driven increased borrowing. The majority of money borrowed, 61.3 percent, is by drivers with prime or super prime credit ratings. Borrowing by drivers with shaky credit, subprime, or deep subprime credit ratings also increased during the same period. To view the full article, visit CNBC.
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Air Bag Defect Leads to Mercedes-Benz Recall of 126,000 Cars
Posted on Nov 4, 2015
According to the National Highway Traffic Safety Administration, a defect in the air bags of certain Mercedes vehicles—which can cause the bags to deploy without impact—has led to a recall of approximately 126,000 cars. Mercedes became aware of a potential defect through three customer complaints in early 2014, but did not discover the root cause until summer 2015. An investigation revealed that the defect is a “manufacturing error” within the air bag control unit. Essentially, swelling and interference with the vehicle’s electrical connections, the result of corrosion of semiconductor...
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National Highway Traffic Safety Administration to Recommend Automatic Brakes in All Vehicles
Posted on Nov 4, 2015
The National Highway Traffic Safety Administration (“NHTSA”) stated that it plans to add automatic emergency breaking (AEB) to its 5-Star vehicle safety ratings as a way to encourage the spread of crash-avoidance technology. With this update to the NHTSA’s vehicle safety ratings, the AEB system would be recommended in all U.S. vehicles beginning with model year 2018. AEB reduces the impact of rear-end crashes (or potentially prevents them) by automatically applying the brakes. Other technologies added since 2011 include electronic stability control, forward collision warning, lane-departure...
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U.S. Auto Manufacturers Report Best Sales in a Decade
Posted on Nov 3, 2015
The major American auto manufacturers reported double-digit increases in sales in the month of October. The increased sales, approaching 1.46 million vehicles, is a 13.6 percent increase from the same period a year ago, and accounts for the best October sales in ten years. Sport Utility Vehicles and Pick-up trucks drove sales, as low financing and cheap gasoline made these vehicles attractive to purchasers. To date, auto manufacturers have sold 14.5 million vehicles, with estimates indicating as many as 17 million vehicles may be sold by year end. To view the full article, visit the New York...
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Tesla Declares it is on Target to Meet Production Goals
Posted on Nov 3, 2015
Electric carmaker Tesla says it is still positioned to produce more than 50,000 vehicles this year. Tesla also states it is continuing to refine its Autopilot feature, currently available in beta release, which allows cars to autonomously steer and change lanes on highways. To view the full article, visit the New York Times.
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Japan Eyeing 2020 to Demonstrate Autonomous Tech Prowess
Posted on Nov 2, 2015
Japanese automakers Honda, Toyota, and Nissan demonstrated their autonomous technology at the recent Tokyo Motor Show. Japanese automakers reportedly want to showcase their autonomous technology on a world stage–namely, the 2020 Summer Olympics in Tokyo. To view the full article, visit HybridCars.com.
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Members Named to Federal Insurance Advisory Committee
Posted on Oct 28, 2015
The U.S. Department of the Treasury recently named twelve members to the Federal Advisory Committee on Insurance (FACI). FACI provides advice and recommendations directly to the Federal Insurance Office to assist that agency in carrying out its statutory authority. Half of the members are state insurance regulators, while the other half are industry executives, academics, and consumer representatives. These members will serve terms of up to 3 years. To view the full article, visit Insurance Journal.
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Europe Weakens Proposed On-The-Road Emissions Testing
Posted on Oct 28, 2015
In the wake of recent emissions testing scandals, the European Union has proposed new regulations and standards that would require on-the-road emissions testing for all new cars by 2019. The proposed standards would require that all new cars emit nitrogen oxide levels no more than fifty percent above the current limits by 2021. Regulators faced criticism after relaxing the proposed cap from twenty percent of current levels to fifty percent. The weakened standards come as a result of claims from auto manufacturers that a twenty percent cap was not feasible in the proposed timeframe. To view...
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Auto Insurance Sector is Shrinking
Posted on Oct 23, 2015
Consulting firm KPMG released a study that claims within the next 25 years the private passenger auto insurance industry may shrink by as much as 60 percent. Reasons for the diminishing market include safer vehicles, an increase in on demand car service, and autonomous technology. By factoring in accident frequency and severity assumptions, KPMG estimates the industry will insure less than $50 billion in loss costs by 2040, which is less than half of the $125 billion it covers currently. To view the full article, visit Insurance Journal.
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Disagreement in the Insurance Industry over Price Optimization
Posted on Oct 23, 2015
The insurance industry has seen a growing debate over price optimization, including the formation of a National Association of Insurance Commissioners (NAIC) task force designed to investigate such practices. Many industries use price optimization to set prices depending on what a consumer would pay for a good or service, but the accepted practice in the insurance industry—with the consensus support of state insurance regulators—is to base prices on the risk profile alone. To view the full article, visit SNL.
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U.S. House Committee Considers Strategies To Improve Vehicle Safety
Posted on Oct 22, 2015
At a hearing held by the U.S. House Committee on Energy and Commerce’s Subcommittee on Commerce, Manufacturing and Trade, Congressional members heard testimony on strategies to improve vehicle safety. The hearing, titled “Examining Ways to Improve Vehicle and Roadway Safety,” key issues included increased reporting requirements for the National Highway Traffic Safety Administration (NHTSA), a plan to improve recall completion rates, and regulations on automakers intended to protect consumer privacy in the wake of increased vehicle hacks. Testimony by two key witnesses—Mark Rosekind, NHTSA...
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