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The transportation landscape is undergoing seismic shifts that will fundamentally alter how people and goods are moved across America. Autonomous trucking has quietly evolved from experimental technology to commercial reality, with companies like Aurora now operating routes of 1,000 miles or more that dramatically outperform human-driven alternatives. When a self-driving truck can complete a journey in half the time without federally mandated rest breaks, the economic calculus becomes impossible to ignore.
Yet technological progress brings unexpected consequences. The advanced safety features designed to protect us—such as automatic emergency braking, lane departure warnings, and blind spot detection—have created a paradoxical effect on insurance costs. While these technologies have successfully reduced accident frequency by 25%, the sophisticated sensors they rely on have made repairs prohibitively expensive, driving up claim costs by 60% and neutralizing anticipated savings. When a simple fender bender can damage calibrated safety systems that require specialized equipment, which few shops possess, insurers increasingly opt to total vehicles rather than repair them.
Meanwhile, cargo theft has emerged as a billion-dollar problem plaguing the automotive supply chain. From factory floors to dealership lots, sophisticated criminals are targeting everything from vehicle components to finished luxury cars, with theft values skyrocketing from $4.6 million in 2012 to $35 million in 2023. These costs inevitably filter down to consumers through higher prices and insurance premiums.
Perhaps most immediately impactful are the sweeping policy changes coming to electric vehicles and renewable energy. Federal tax credits worth $7,500 for new EVs and $4,000 for used EVs will vanish on September 30th, alongside commercial vehicle incentives worth up to $40,000 per vehicle. Renewable energy isn't spared either—rooftop solar installation credits expire at year's end, while wind and solar farm incentives in place for decades will disappear for projects after 2027. For consumers contemplating an EV purchase or solar installation, the clock is ticking on significant potential savings.
Ready to dive deeper into these transformative mobility trends? Subscribe to the TechMobility Show for weekly insights that help you navigate our rapidly evolving transportation future.
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Episode Transcript
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Speaker 1 (00:01):
Welcome to the Tech Mobility Podcast.
Speaker 2 (00:10):
I'm Ken Chester On the docket why vehicles equipped
with advanced driver assistancetechnology pay higher insurance
premiums, theft, auto industrycargo and the end of EV credit.
To join the conversation, be itto ask a question, share an
opinion or even suggest a topicfor future discussion, call or
(00:32):
text the TechMobility hotline,that number, 872-222-9793.
Or you can email the showdirectly.
Talk at techmobilityshow Fromthe Tech Mobility News Desk.
I know that I have talked toyou a lot about autonomous
(00:58):
trucking.
Regardless of how you feelabout it whether driving down an
interstate at interstate speedsand looking over at the truck
that's up next to you and notseeing a driver is a little
unnerving it is the thing thatis happening in real time.
And, as always when it comes tobusiness, as always, yes, it's
(01:20):
money involved.
I wanted to share with you thelatest news and, yes, it's
happening down in Texas.
Texas, arizona, california isground zero for autonomous
trucking.
Part of that's the weather.
It's even Part of that's theinterstate.
Many, many miles of many, manymiles.
(01:43):
There are not a lot of cities,so they can do the long haul
trucking necessary with aminimum of programming and I say
a minimum, that is really anunderstatement, but it's not as
complex as trying to navigate amajor city is what I'm saying.
Autonomous truck technologymaker, aurora has expanded its
(02:04):
pilot program with Werner.
Werner Enterprises is a majortrucking firm in the United
States.
The new Fort Worth to PhoenixLane will augment Aurora's
existing Fort Worth to El PasoLane, which is expected to begin
in the second half of the year.
Now what do they mean by lanes?
They mean they are opening atrucking route between those
(02:26):
cities, an autonomous truckingroute For the longest time
during their pilot testing andit's not just Aurora, it's too
simple, it's others.
Torque is another one.
They had safety drivers, theyhad remote operation, remote
(02:46):
control, they had somebodymonitoring.
They're getting to the pointnow, as they finish out their
safety validations, that if theyhave safety drivers they'll
pull them, if they have remotedrivers they'll pull them.
And these vehicles will beoperating on public roads,
(03:07):
typically interstates, andtypically there's one in
particular to either I-10 orI-45, they'll be running in the
very near future.
This year, at volume, the newlane, fort Worth to Phoenix lane
, is over 1,000 miles, withAurora self-driving trucks
(03:30):
having the potential to cut thesingle driver transit time in
half.
Think about this for a minute Ifyour average speed and that's
stop, go loading, whatever.
Everything averaged together isusually about 50 miles an hour,
50, 55, depending on the state.
A commercial truck, a class Atruck, may be limited to 55.
(03:51):
They don't usually let youtravel much faster than that.
So let's say the average speedis 50 miles an hour.
Okay, assuming that the driverin Fort Worth was able to load
up and roll out, that he startedhis day at that terminal, was
able to get his load with nodelay and roll out the door.
(04:13):
According to federal hours ofservice laws, a human driver can
drive a maximum of 11 hours ina 24-hour day.
So how do you get around that?
Well, one way to get aroundthat is teams of drivers, where
(04:34):
you have two drivers that are inthe truck and when one hits the
numbers, the other one jumpsand takes over.
That gets you to 22 hours, andif there are any delays at all
because that doesn't count forfuel any port or traffic issues,
that's straight.
Autonomous trucks, though,don't have the same requirement,
(04:57):
meaning there's an opportunityto dramatically increase asset
utilization and thus revenuetrials driven.
Do you have any idea what aclass eight big rig over the
road truck cost each?
We're talking six digits,hundreds of thousands of dollars
(05:18):
each rig.
And that doesn't count howyou're paying the driver.
Usually they get paid by themile.
If your company driver, thecompensation might be different
if your owner-operator is permile.
Imagine being able to coverthat 1,000 miles in 10 hours
instead of 22.
In fact, if they do it andwe'll even throw in that they
(05:40):
have a two-hour turnaround whenthey get to Phoenix, that they
have a two-hour turnaround whenthey get to Phoenix.
So in the time it took thedrivers to get there human
drivers, 22-plus hours to getthere the automated Werner truck
(06:01):
could get there in roughly 20hours, turn around and be part
of the way back.
Don't have to stop at all, noteven a problem, no stopping at
all, assuming the same 50 milesan hour.
And here's something that theylearned about autonomous
trucking.
Actually, the autonomoussoftware is actually less hard
on the truck.
Brakes last longer, tires lastlonger, there's less wear,
(06:22):
there's less damage, because thesoftware is more consistent and
even over longer periods.
Because the average human being, we fluctuate.
You don't think you do, but youdo.
Somebody was to follow you fora hundred miles, they would see.
Even with the cruise you wouldfluctuate in speed, you would
fluctuate in your handling andlane changing and things like
(06:43):
that, how you use the brakes.
They found that, in addition tothe federal hours of service
issue, that becomes a non-issuenow, because now that truck can
do it in 20 hours, doesn't haveto stop and may even get better
time.
Because they found out that bybeing smoother, more careful the
(07:05):
studios they actually makebetter time, that they could be
part of the way back or leavingthe terminal.
When the drivers the humandrivers get there with their
load, the autonomous truck hasalready been there and get ready
to leave Money, money, moneyand the fact that you don't need
(07:25):
two drivers.
In fact, you don't need anydrivers.
So, in addition to two driversalaries, you don't need a truck
that can run and doesn't haveto shut down, so you don't have
issues with potential theftbecause you have to stop.
If it's a single driver, it'sgoing to take you two days to
get there With two drivers.
(07:46):
Okay, a little over a day Withan autonomous truck.
I can still shave time off ofthat and it's all about time and
money.
If the truck ain't moving, itain't earning, and that's the
challenge.
That is the challenge.
But in case you think thatthey're doing this willy-nilly.
I'm looking at a story that's acouple months ago with Aurora
(08:09):
and they're talking about acouple of other trucking
companies and the subheading inthat title is company completes
1,200 miles of driving without adriver in the cab.
That's dated May 1st this yearand if you've been a regular
listener of this program, youalready you know the answer to
the question I'm about to askwhen was the first fully
(08:33):
autonomous trucking deliveryFrom where to where, what was it
hauling, and when did it happen?
If you said Colorado, you'd beright.
If you said from Fort Collinsto Colorado Springs, you'd be
right.
If you said from Fort Collinsto Colorado Springs, you'd be
right.
If you said it was Budweiserbeer, you get the prize.
(08:55):
The first paid load forautonomous trucks happened back
in 2015, 10 years ago Now, to befair.
At that time there were safetydrivers in the cab, but they
pretty much just sat there.
Truck did the work.
They got the truck on theinterstate.
They got the truck off theinterstate, but that interstate,
(09:17):
which was most of the trip alittle over 100 miles.
That was all autonomous andthat was 10 years ago.
More and more trucks in thesouthwestern part of the United
States will be making autonomousruns, and these long runs is
where they excel because theycan kind of make the time and
money that a human driver can'tbecause of the laws and human
(09:40):
nature.
You got to stop and go to thebathroom, you got to stop and
eat.
Those things happen.
So it's all about the money, asalways, and you're only going
to see more of it as time goeson, not less.
Advanced driver assistance techis supposed to make cars safer,
meaning lower insurance rates.
Right, not so fast.
(10:01):
You're listening to the TechMobility Show.
Speaker 1 (10:17):
Not so fast.
You're listening to the TechMobility Show and webinars and
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Here's the best part you canenjoy a 30-day free trial.
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Speaker 2 (10:33):
Get started today and revolutionize the way you
communicate social media is themain place to be these days, and
we are no exception.
I'm ken chester, the techmobility show.
If enjoy my program, then youwill also enjoy my weekly
Facebook videos, from my latestvehicle reviews to timely
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These short features aredesigned to inform and delight.
(10:56):
You.
Be sure to watch, like andfollow us on Facebook.
You can find us by typing theTech Mobility Show in the search
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Be sure to subscribe to ourFacebook page.
Social media is the place to bethese days, and we're no
exception.
I'm Ken Chester of the TechMobility Show.
If you enjoy my program, thenyou will also enjoy my weekly
(11:18):
Instagram videos, from thelatest vehicle reviews to timely
commentary on a variety ofmobility and technology-related
topics.
These short features aredesigned to inform and delight.
You be sure to watch, like andfollow us on instagram.
You can find us by typing thetech mobility show in the search
bar.
For those of you that listen topodcasts, we have just the one
(11:40):
for you.
Hi, I'm Ken Chester.
Tech Mobility Topics is apodcast where I upload
topic-specific videos each week.
Shorter than a full show.
These bite-sized programs arejust the thing, particularly if
you're interested in aparticular topic covered on the
weekly radio show.
From Apple Podcasts toiHeartRadio and many podcast
platforms in between, we got youcovered.
Speaker 3 (12:10):
Just enter Tech Mobility Topics in the search
bar.
Wherever you listen to podcasts, that light tells you this.
Nissan Sentra Coupe is low onwasher fluid, but it's also an
indicator of the Sentra's levelof standard equipment.
It has steering, morehorsepower, tilt, steering wheel
and wider tires.
It's also won two caa awards inthe 90s, which is exactly two
more than trussell has.
Plus, it costs hundreds less.
You just hate it when you runout of wiper fluid.
(12:32):
Visit your nissan dealer todayand test drive a nice, clean,
centric coupe, because it's timeto expect more from a car.
Speaker 2 (12:40):
The Nissan Sentra, a vehicle that is still in the
Nissan company lineup, adependable, solid, rock, solid
rock star of a car that they'vebeen building for over 40 years,
and back then that ad was from1995.
Ooh, more power, bigger tires,power steering.
(13:01):
Probably still had what we callhand crank windows, not power
windows, power windows, powersteering, air conditioning.
Back in the day, folks wasoptional optional hydraulic
brakes, manual steering, airconditioning.
Power steering came first,power brakes came second, but
for the longest time, even upinto the early 1990s, air
(13:25):
conditioning was not a standardfeature on every vehicle.
It is now.
You wouldn't think of owning avehicle without air conditioning
, but back then, yeah, it wasextremely possible to own a
vehicle without air conditioning.
And back in the day where Igrew up in New England, as I've
told you before, it only gotbrutally hot two weeks a year
back then, and that was themiddle of August.
(13:46):
June, july were okay, they werewarm, they weren't hot.
You rolled down the window, youhad a breeze, life was good.
You only really needed it fortwo weeks and most people did
not spend the money.
They did not spend the money,they did not see the reason why
they needed to.
So if you bought a car in theearly 1980s in New England,
chances are it didn't have airconditioning.
My first new car did not and Ibought it off the floor at
(14:11):
Newton Chrysler, plymouth inNewton Massachusetts, about
three blocks from where we livedDid not have air conditioning,
matter of fact.
I don't think my second car hadair conditioning and I'm not
sure about my third car, whichby that time was an 86.
Of all Sentra I think I endedup.
I did not own a vehicle withair conditioning until my 89
(14:34):
Plymouth Acclaim.
I think that was the first onethat had air and that's the
fourth car I owned.
So yeah, just an interestingthing, thought I'd share.
Now.
For years it was commonknowledge.
We kept being told by all thesafety security folks that with
the dawn of this suite ofadvanced driver assistance
technologies lane changemitigation, blindside warning,
(14:59):
rear vehicle warning, automaticemergency braking, all this
stuff, all this suite of safetyfeatures anti-lock brakes,
traction control would not onlyreduce the number of severity of
traffic accidents, but thatmotorists would expect a
reduction of insurance rates asa result Makes sense, right.
(15:21):
More safety equipment mitigatesaccidents and in fact accidents
have in fact gone down.
But something terrible hashappened that basically wipes
out all those savings, and it'sone of those unintended
consequences.
This is topic A.
Let me give you an example.
(15:41):
You're in an accident, yourairbags deploy, the chances of
your insurance company totalingthe car are pretty high.
And why would they do that?
It's very easy Once the metal'sbeen compromised even if an
expert crackerjack body shop wasable to restore it, that
(16:03):
metal's been fatigued, meaningthat the crash pressures against
it.
The sensors won't work rightbecause the metal is not at the
integrity that it was when itwas new.
They don't want to take thechance, even if they did
everything right and perfect.
The vehicle structure has beencompromised and once it's been
compromised it is never trulyreally the same.
(16:25):
And those sensors areengineered on certain given
certain pressures and certainforce exertion in order to react
, report or whatever.
Back in the day you got in anaccident, they'd take a look at
it, they'd fix it, put you backin the road, all is good.
And I'm sure you've askedyourself well, wow, it was only
(16:48):
about $3,000 worth of damage.
Why did they total the vehicle?
Because they did not want to beliable for a malfunction of
those sensors, any future orconsequential accident where you
might even just tap it and itcrumples and you get hurt where
(17:09):
either the airbags or the safetyequipment didn't deploy as
designed, because the sensorseither weren't calibrated right
or they were, but the metalaround it and the structures
around them had been compromisedin a previous accident.
That is what's causing yourinsurance premiums to go up.
(17:30):
Equipping vehicles with driverassist technology has an
increased cost of insurance andauto repairs and, in one person
quoted, it's almost becoming tooexpensive to fix the car.
Let me give an example.
Features like automaticemergency braking have helped
reduce claims frequency by 25%over the past five years, so
(17:53):
that's good, but a 60% increasein claim costs have offset any
financial savings in that period.
What happened?
Well, automatic emergencybraking is or front braking, is
the vehicle's sensors realizingthat something's in front of you
(18:15):
stopped dead and it reactsfaster than you could perceive
or act personally, bringing thevehicle to a stop or, at the
very least, breaking its speeddown to a safe level?
The problem is those sensors andeverything that goes with them,
the wiring and everything.
(18:36):
When they get damaged, theyhave to be replaced and
recalibrated.
Oh, and if and if thewindshield get cracked, it's not
just the same as replacing awindshield.
There are sensors in yourwindshield.
Those have to be recalibratedand paid for and, like the
automakers are like insurancecompanies, they hate risk.
So they've over-engineered allthis stuff to be safe.
(18:59):
They cannot afford to have itfail normally under normal
circumstances.
But the problem is inover-building this stuff.
It made it way more expensive.
Here's something that scared mea little bit in doing the
research for this story.
They say there's 33,000automotive repair shops in the
(19:20):
United States.
They said only a handful havethe proper lighting, perfectly
level floor andautomaker-specific targets to
calibrate sensors.
And you know why?
Because it could cost between$600,000 to $1 million to outfit
one shop with the rightequipment One shop.
(19:44):
So what are people doing?
Well, if the insurance companydidn't hold the vehicle but the
sensors need to be replaced,they may choosing to not
calibrate the sensors.
So not only do you have sensorsin a compromised vehicle, but
they haven't been calibrated,meaning they're not going to
work right or work at all.
Then maybe they trade or sellthe car and you're the second
(20:07):
owner.
You get it, you're in anaccident and stuff doesn't work
the way it's supposed to.
The airbags didn't deploy, thesensors didn't warn you.
You got hurt.
You didn't know that thevehicle you bought had
compromised sensors that hadn'tbeen calibrated.
The you didn't know that thevehicle you bought had
compromised sensors that hadn'tbeen calibrated.
The insurance company wantsnone of that.
That's why they're willing tototal the car and the problem is
that is reflected in your rates.
(20:28):
So the question is is ownershipstill the answer?
Is ownership still the answerwhere it costs over $12,000 a
year to own and operate avehicle, of which about $2,000
of that's insurance?
Maybe we need to take a look atthis whole model of private
vehicles.
Maybe we're past the point ofownership.
(20:49):
Maybe it just doesn't makesense anymore to own a vehicle
From factories to dealerships.
Thieves are targeting autoindustry cargo we explore next.
This is the Tech Mobilitypodcast.
Just about anywhere you canenjoy podcasts.
(21:24):
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Hi, I'm ken chester, host thetech mobility show several times
(21:46):
a week.
I post to tiktok several of thetopics that I cover on my
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Check it out.
(22:12):
From finished vehicles on thedealership lot to railroad
marshalling yards, to even partsand entire engines off of
factory assembly lines, cargotheft in the automotive industry
has become big business.
According to the Federal Bureauof Investigation, during 2023,
there were 1,360 cargo theftsworth over $35 million, and that
(22:35):
was within the United States.
Yikes, this is topic B.
Let me give you some context In2012,.
Well, first let me back up.
Let me define what cargo theftis.
Then I'll give you the numbers.
According to the FBI, cargotheft is defined as that
(22:58):
constitutes, in whole or in part, a commercial shipment of
freight moving in commerce.
So it's not the equivalent ofsomebody stealing an
individual's car.
We're not talking about that.
We're talking about thievesworking within the auto industry
to steal wholesale.
They ain't stealing a part.
This is not like Johnny Cash'slegendary song from way back in
(23:20):
the day, one Piece at a Time.
And if you didn't know the song, it's where he basically stole
him a Cadillac over 30 yearsworking on the line at GM and
tried to put it all together.
It was interesting.
The video was funny, you know.
No, we're not talking aboutthat.
In 2012, there were 183 cargothefts involving vehicles or
(23:44):
parts.
The value of that theft was$4.6 million.
It doesn't really jump until2017 to 2018, where it goes from
$4.9 million to $6.3 million,and then 2019, from $6 million
it doubles to $13.3 million, andthen by 2023, more than doubles
(24:08):
again to $35 million.
Why does it matter to you?
Why do you care?
Every time somebody does thatone, at the very least, if it's
your car or a part you'rewaiting on, then it just
extended the time that yourvehicle's out of service because
it got stolen or worse.
Yet it's being reflected in thecost of everything.
(24:29):
Somebody's got to cover thatthe automaker or the parts
company.
Their insurance premiums aregoing to go up and they're going
to pass that along.
So, directly or indirectly, youget to pay for that theft.
I once read an article some timeago just to give you an idea in
the auto industry just howcrazy this is.
This is about 50 years ago.
(24:52):
They were looking at a 1975Ford Granada, and if you don't
know what a Granada is, aGranada was a mid-sized
four-door sedan that Ford builtback in the day Knew.
The vehicle went for about$5,000.
They said in parts, in parts.
If you took the car parts, soldthe parts separately, it'd be
(25:14):
worth $35,000.
And that was in 1975.
Imagine now, particularly thepandemic made it much worse.
Remember when the automakerswere struggling for computer
components and things and therewere no vehicles anywhere to be
found.
So if you had a vehicle thatneeded to be fixed you couldn't
(25:35):
get parts anyway, which onlyhelped the thieves say, ooh, we
can make money.
So they stepped it up andstarted ripping off In one
really crazy situation.
If you can believe this and Iread it, I had to read it twice
because it was nuts.
I want to find this example.
(25:56):
Oh yeah, this past April policealleged the two former workers
at Kia India this is in India,get this now stole 1,008 engines
worth $2.3 million from afactory over three years.
How do you steal an automobileengine?
(26:18):
Even in a small Kia, thoseengines weigh two 300 pounds.
Number one, number two, withjust in time inventory.
I don't even know how they gotaround that.
That had to be a seriouslyinside job, because one of the
things that, at least in America, they adopted is something
called just-in-time inventory.
What that means is there's nowork and process inventory on
(26:46):
the floor from the supplierwaiting to be put in a vehicle.
The supplier gets the order,they build it, they send it and
it gets to the assembly lineminutes before it's to be
installed Minutes literally.
Hence called just-in-timebecause it gets there
just-in-time.
So I don't know what kind ofinventory process they were
using in India, to where youcould miss that many engines,
(27:08):
because that meant cars weremissing, engines that had to
mess up the assembly line.
One or two would have been badenough, but over a thousand
Yikes.
That was then.
This past March in the UnitedStates, police recovered eight
stolen Chevy Corvettes valued at$1.2 million, and they stole
(27:31):
them from the plant in BowlingGreen, kentucky.
How do you do that?
Again, some folks had to havesome knowledge.
I could almost think it cameoff the line and parked them in
the marshalling yard, and maybethey paid a security guard to
look the other way.
That's the only way they had tobe finished.
Cars waiting to be shipped,because there's something called
(27:53):
a marshalling yard at eachassembly plant where they park
the cars waiting to either beshipped out by truck or by rail
or whatever.
So there could be a momentwhere those vehicles could have
been driven off.
But trust me, you don't justwalk into an automobile assembly
plant.
You don't get on the ground,you don't.
(28:17):
No, no, every automaker hastheir own security, and I do
mean the word when I say force.
They've got fences, they've gotvideo, they've got cameras.
Yeah, you ain't going to dothat unless you had some help,
particularly Corvettes, becausewe ain't talking hundreds of
thousands of them, and theymanaged to steal eight of them,
eight of them, yikes.
Now the good news typically, ifit's whole cars, usually law
(28:42):
enforcement is able to get a lotof them back, but they don't
get them all back.
I think in the case of GM, withthe suite of security features
that come with OnStar, wherethey can track them and
literally shut them downremotely, should have mitigated
some of that quite a bit.
You would think.
But yeah, this is the thingthat's happening.
(29:02):
It's happening in the autoindustry, it's been happening
for decades, but again, with theaverage cost of a vehicle
around $50,000 and the fact thatthere's so many parts that are
so valuable, that people needand that are required in the
manufacturing of an automobile,most people don't realize that
(29:23):
your average automobile factoryworks with anywhere from 700 to
1,500 different suppliers aroundthe world and they're
assembling in a vehicle roughly15,000 parts and it roughly
takes 24 hours from the timethat job is started as a frame
to the time it rolls out the endof the plant, fully made.
(29:44):
A lot of things can happen in acourse of a day, parts going
every which way, but it's achoreographed dance.
So in order, you're not justgoing to walk into a plant and
walk out.
It don't work that way.
Thieves are getting bold andthey're getting sophisticated
(30:05):
and as long as autos continue tobe a place where money can be
made and people think it's stillworth the risk, they will
continue to do it.
The problem can be made andpeople think it's still worth
the risk, they will continue todo it.
The problem is we all pay forit.
That ends up costing all of us.
But I wanted to share that withyou because it's gotten crazy
in the last few years.
It's just gotten out of controland with the rise of EVs and
(30:27):
all these electronics theyanticipate it will only continue
to get worse.
We'll see what happens,particularly with these vehicles
that drive themselves.
I wonder what happens if you'reable to hack the thing, can you
get it to drive to your house,and then you have the vehicle
and they don't know where itwent.
That will be something worthwatching as these EVs evolve in
the coming years.
(30:47):
If that becomes a thing thatthey literally steal them in
plain sight, as of the end ofSeptember, ev credits are toast.
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(31:10):
our website.
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The website is a treasure troveof information about me and the
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Keep up with the happenings ofthe Tech Mobility Show by
visiting techmobilityshow.
That's techmobilityshow.
You can also drop us a line attalk at techmobilityshow.
(31:44):
You can also drop us a line attalk at techmobilityshow.
Short videos of some of the hottopics that I cover during my
weekly radio program.
I've designed these videos tobe informative and entertaining.
It's another way to keep up oncurrent mobility and technology
news and information.
Be sure to watch, like andsubscribe to my channel.
That's the Tech Mobility Showon YouTube.
Check it out.
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Speaker 2 (32:39):
Social media is the place to be these days, and
we're no exception.
I'm Ken Chester of the TechMobility Show.
If you enjoy my program, thenyou will also enjoy my weekly
Instagram videos, from thelatest vehicle reviews to timely
commentary on a variety ofmobility and technology-related
topics.
These short features aredesigned to inform and delight
you.
Be sure to watch, like andfollow us on Instagram.
(33:01):
You can find us by typing theTech Mobility Show in the search
bar.
Recent legislation passed byCongress and signed by the
president will bring dramaticchanges to EV policy in the
United States.
One very public result of thischanging tide is the elimination
(33:21):
of EV credits as of the end ofSeptember.
But as one famous circus parkersaid, wait, there's more.
This is Topic C.
Regardless of where you are onthe spectrum, whether you love
EVs, hate EVs, think everybodyshould drive them, think nobody
should make you drive them,doesn't matter.
(33:43):
I want to share with you sometruth, some facts here, so that
you can whatever when you havethe conversation, you can tell
it right.
So let me start.
I'm just going to walk you downsome things, things you know,
some things you might not know.
So let's get started.
First of all, the obviousfederal tax credit for new EVs,
(34:06):
which is $7,500, will endSeptember 30th this year.
Federal tax credit for used EVsand that was the one recently
passed in one I think it was thenot to build back better, but
one of the previousadministrations passed where you
could get a credit for buying aused EV, subject to certain
(34:29):
qualifications.
That $4,000 credit will alsoend same day, end of September.
For those of you in business,it's called the 45W Commercial
Clean Vehicles Credit.
In business it's called the 45WCommercial Clean Vehicles
Credit.
In other words, the governmentwill help you subsidize a
purchase of a clean commercialtruck vehicle, whether it is
(34:50):
alternative fuel or hybrid EVtruck, whatever.
That was up to $40,000 pervehicle for companies buying
electric cars or trucks and thatincludes businesses that lease
the vehicles to consumers.
That also ends September 30th.
So if you were a leasingcompany that was buying vehicles
(35:12):
to lease out, buying cleanvehicles, and you were getting a
credit, that credit goes away.
Here's something that you didn'tknow the bill eliminates
penalties for automakers thatfail to meet federal corporate
average fuel economy standards.
No penalties for meeting them,for not meeting them.
(35:36):
So what does that mean?
It means, number one, that ifyou're an American consumer that
you're going to pay more forfuel Because the vehicles which
would have been more efficient.
Now there's no incentive forthem to continue and there's a
caveat in that.
I want to finish reading this.
(35:57):
I'm going to come back to thecaveat reading this.
I'm going to come back to thecaveat.
It also, if an automaker wasliterally on a cusp, makes them
less competitive globally,because every automaker that
sells in the United States sellsaround the world and it's not
one size fits all.
They have to deal with all ofthis stuff.
(36:17):
They're spending billions ofdollars, so they want to get the
most bang for their buck.
This really honestly doesn'thelp the automakers when you
think about it.
Because if the rest of theworld is demanding tougher
standards and the United Statespicks their foot up and says, no
, no, it's okay, you don't needit, it's okay If the automaker
does that in the United States,they still got to spend that
(36:38):
money overseas.
So why not spread that costover the vehicles you're selling
here and now?
You won't, because you tookyour foot up.
That makes you less competitive, not more competitive.
And with the price of gasolinebeing what it is right now and
here in Iowa, if you are buyingethanol what we call E15, which
(37:00):
is 15% ethanol it's stillhovering right around $3 a
gallon.
It's just a tick below three.
That's high around here.
We've been paying in the lowtwos for the longest.
This should take prices up,actually, because if cars are
less efficient then they'regoing to consume more.
That's going to create moredemand.
(37:21):
That's going to drive prices up.
Something else that you may nothave realized alternative fuel
refueling, property credits,credits you could get at home
for installing an EV charger,for example those end next June,
june 30th, 2026.
(37:41):
Now it does not affect anystate level programs for any
state.
So if your state has some sortof EV credit or alternative fuel
refueling credit or somethinglike that, not a problem.
But there's more.
You may have heard this thereis a deduction for car loan
(38:02):
interest for American-madevehicles.
What you may not remember,unless you're a person of a
certain age, is until 1991, whatwe used to call retail interest
on retail credit, like creditcards and car loans and stuff,
was all deductible.
That went away over 30 yearsago.
They're bringing it back justfor American-made vehicles.
My problem is, whose definitionof American-made?
(38:25):
Is it 50%, 60%, 70%, becausethere ain't no vehicle on the
road, even the ones that havehigh American content, that are
100% American-made.
Tesla's come the closest, someHonda's second, but not 100%,
100%.
So who's going to set that barthe Commerce Department?
And what are they going to useto set it?
(38:47):
And how are they going tomeasure it, because vehicles and
content come from all over andliterally could change year to
year?
So there's that From 2025 to2028, interest paid on loans for
purchasing a personal usedvehicle will no longer be
considered personal interest andcan be deducted.
(39:07):
Final assembly must occur in theUnited States.
That's one definition Maxdeductible interest of $10,000
per year and it phases out fortaxpayers that make more than
$100,000 single and $200,000joint.
But you only get it for threeyears.
What's the point?
The average car loan is fiveand right now, probably if
you're driving a pickup truckthat costs you north of 60,
(39:29):
you're probably got a six orseven year note on that, and if
you just bought it this year,you're only going to get credit
for three.
You're still going to be hardout of pocket.
Okay, here's another one.
This is an interesting curvethat you may not know about
Energy storage.
It's called the 48E InvestmentTax Credit.
It has a domestic contentrequirement for both the
(39:51):
facility and the technology.
But now you've got to meet both.
And there are only threecompanies in the United States
doing that now LG Energy,envision, aesc and guess what,
tesla Interesting.
But remember, you thought itwas just EV credits.
Let me give you this.
(40:11):
I'm talking to you, homeownersRooftop solar.
The bill terminates the 30% taxcredit for rooftop solar
installations at the end of thisyear.
If you were thinking aboutinstalling solar, do it now,
because you won't have that.
You will not have that creditafter the end of the year.
Same thing goes with taxcredits for geothermal heat
(40:33):
pumps and other home devices endof the year All sorts of things
.
The bill kills cleanelectricity investment and
production tax credits for windand solar that have been in
place since 1995 and 1992.
Solar and wind farms andantiservice after 2027 will no
longer be eligible for thecredits.
This is going to bring therenewable industry to a
(40:56):
screeching halt, which meansthat's going to have some real
nasty impact out here in Iowa,because we both do solar and we
do a lot of wind out here.
So there's a lot in it, a lotof what you know is going to be
at the end of this year Some arestaggered Solar, wind, ev
(41:17):
credits gone, if you're ahomeowner, gone.
Welcome to the Tech Mobility Podcast.
Speaker 2 (00:10):
I'm Ken Chester On the docket why vehicles equipped
with advanced driver assistancetechnology pay higher insurance
premiums, theft, auto industrycargo and the end of EV credit.
To join the conversation, be itto ask a question, share an
opinion or even suggest a topicfor future discussion, call or
(00:32):
text the TechMobility hotline,that number, 872-222-9793.
Or you can email the showdirectly.
Talk at techmobilityshow Fromthe Tech Mobility News Desk.
I know that I have talked toyou a lot about autonomous
(00:58):
trucking.
Regardless of how you feelabout it whether driving down an
interstate at interstate speedsand looking over at the truck
that's up next to you and notseeing a driver is a little
unnerving it is the thing thatis happening in real time.
And, as always when it comes tobusiness, as always, yes, it's
(01:20):
money involved.
I wanted to share with you thelatest news and, yes, it's
happening down in Texas.
Texas, arizona, california isground zero for autonomous
trucking.
Part of that's the weather.
It's even Part of that's theinterstate.
Many, many miles of many, manymiles.
(01:43):
There are not a lot of cities,so they can do the long haul
trucking necessary with aminimum of programming and I say
a minimum, that is really anunderstatement, but it's not as
complex as trying to navigate amajor city is what I'm saying.
Autonomous truck technologymaker, aurora has expanded its
(02:04):
pilot program with Werner.
Werner Enterprises is a majortrucking firm in the United
States.
The new Fort Worth to PhoenixLane will augment Aurora's
existing Fort Worth to El PasoLane, which is expected to begin
in the second half of the year.
Now what do they mean by lanes?
They mean they are opening atrucking route between those
(02:26):
cities, an autonomous truckingroute For the longest time
during their pilot testing andit's not just Aurora, it's too
simple, it's others.
Torque is another one.
They had safety drivers, theyhad remote operation, remote
(02:46):
control, they had somebodymonitoring.
They're getting to the pointnow, as they finish out their
safety validations, that if theyhave safety drivers they'll
pull them, if they have remotedrivers they'll pull them.
And these vehicles will beoperating on public roads,
(03:07):
typically interstates, andtypically there's one in
particular to either I-10 orI-45, they'll be running in the
very near future.
This year, at volume, the newlane, fort Worth to Phoenix lane
, is over 1,000 miles, withAurora self-driving trucks
(03:30):
having the potential to cut thesingle driver transit time in
half.
Think about this for a minute Ifyour average speed and that's
stop, go loading, whatever.
Everything averaged together isusually about 50 miles an hour,
50, 55, depending on the state.
A commercial truck, a class Atruck, may be limited to 55.
(03:51):
They don't usually let youtravel much faster than that.
So let's say the average speedis 50 miles an hour.
Okay, assuming that the driverin Fort Worth was able to load
up and roll out, that he startedhis day at that terminal, was
able to get his load with nodelay and roll out the door.
(04:13):
According to federal hours ofservice laws, a human driver can
drive a maximum of 11 hours ina 24-hour day.
So how do you get around that?
Well, one way to get aroundthat is teams of drivers, where
(04:34):
you have two drivers that are inthe truck and when one hits the
numbers, the other one jumpsand takes over.
That gets you to 22 hours, andif there are any delays at all
because that doesn't count forfuel any port or traffic issues,
that's straight.
Autonomous trucks, though,don't have the same requirement,
(04:57):
meaning there's an opportunityto dramatically increase asset
utilization and thus revenuetrials driven.
Do you have any idea what aclass eight big rig over the
road truck cost each?
We're talking six digits,hundreds of thousands of dollars
(05:18):
each rig.
And that doesn't count howyou're paying the driver.
Usually they get paid by themile.
If your company driver, thecompensation might be different
if your owner-operator is permile.
Imagine being able to coverthat 1,000 miles in 10 hours
instead of 22.
In fact, if they do it andwe'll even throw in that they
(05:40):
have a two-hour turnaround whenthey get to Phoenix, that they
have a two-hour turnaround whenthey get to Phoenix.
So in the time it took thedrivers to get there human
drivers, 22-plus hours to getthere the automated Werner truck
(06:01):
could get there in roughly 20hours, turn around and be part
of the way back.
Don't have to stop at all, noteven a problem, no stopping at
all, assuming the same 50 milesan hour.
And here's something that theylearned about autonomous
trucking.
Actually, the autonomoussoftware is actually less hard
on the truck.
Brakes last longer, tires lastlonger, there's less wear,
(06:22):
there's less damage, because thesoftware is more consistent and
even over longer periods.
Because the average human being, we fluctuate.
You don't think you do, but youdo.
Somebody was to follow you fora hundred miles, they would see.
Even with the cruise you wouldfluctuate in speed, you would
fluctuate in your handling andlane changing and things like
(06:43):
that, how you use the brakes.
They found that, in addition tothe federal hours of service
issue, that becomes a non-issuenow, because now that truck can
do it in 20 hours, doesn't haveto stop and may even get better
time.
Because they found out that bybeing smoother, more careful the
(07:05):
studios they actually makebetter time, that they could be
part of the way back or leavingthe terminal.
When the drivers the humandrivers get there with their
load, the autonomous truck hasalready been there and get ready
to leave Money, money, moneyand the fact that you don't need
(07:25):
two drivers.
In fact, you don't need anydrivers.
So, in addition to two driversalaries, you don't need a truck
that can run and doesn't haveto shut down, so you don't have
issues with potential theftbecause you have to stop.
If it's a single driver, it'sgoing to take you two days to
get there With two drivers.
(07:46):
Okay, a little over a day Withan autonomous truck.
I can still shave time off ofthat and it's all about time and
money.
If the truck ain't moving, itain't earning, and that's the
challenge.
That is the challenge.
But in case you think thatthey're doing this willy-nilly.
I'm looking at a story that's acouple months ago with Aurora
(08:09):
and they're talking about acouple of other trucking
companies and the subheading inthat title is company completes
1,200 miles of driving without adriver in the cab.
That's dated May 1st this yearand if you've been a regular
listener of this program, youalready you know the answer to
the question I'm about to askwhen was the first fully
(08:33):
autonomous trucking deliveryFrom where to where, what was it
hauling, and when did it happen?
If you said Colorado, you'd beright.
If you said from Fort Collinsto Colorado Springs, you'd be
right.
If you said from Fort Collinsto Colorado Springs, you'd be
right.
If you said it was Budweiserbeer, you get the prize.
(08:55):
The first paid load forautonomous trucks happened back
in 2015, 10 years ago Now, to befair.
At that time there were safetydrivers in the cab, but they
pretty much just sat there.
Truck did the work.
They got the truck on theinterstate.
They got the truck off theinterstate, but that interstate,
(09:17):
which was most of the trip alittle over 100 miles.
That was all autonomous andthat was 10 years ago.
More and more trucks in thesouthwestern part of the United
States will be making autonomousruns, and these long runs is
where they excel because theycan kind of make the time and
money that a human driver can'tbecause of the laws and human
(09:40):
nature.
You got to stop and go to thebathroom, you got to stop and
eat.
Those things happen.
So it's all about the money, asalways, and you're only going
to see more of it as time goeson, not less.
Advanced driver assistance techis supposed to make cars safer,
meaning lower insurance rates.
Right, not so fast.
(10:01):
You're listening to the TechMobility Show.
Speaker 1 (10:17):
Not so fast.
You're listening to the TechMobility Show and webinars and
stay in touch with family andfriends, all in one place and
for one price.
Here's the best part you canenjoy a 30-day free trial.
It's time to simplify your lifeand boost your productivity.
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Speaker 2 (10:33):
Get started today and revolutionize the way you
communicate social media is themain place to be these days, and
we are no exception.
I'm ken chester, the techmobility show.
If enjoy my program, then youwill also enjoy my weekly
Facebook videos, from my latestvehicle reviews to timely
commentary of a variety ofmobility and technology-related
topics.
These short features aredesigned to inform and delight.
(10:56):
You.
Be sure to watch, like andfollow us on Facebook.
You can find us by typing theTech Mobility Show in the search
bar.
Be sure to subscribe to ourFacebook page.
Social media is the place to bethese days, and we're no
exception.
I'm Ken Chester of the TechMobility Show.
If you enjoy my program, thenyou will also enjoy my weekly
(11:18):
Instagram videos, from thelatest vehicle reviews to timely
commentary on a variety ofmobility and technology-related
topics.
These short features aredesigned to inform and delight.
You be sure to watch, like andfollow us on instagram.
You can find us by typing thetech mobility show in the search
bar.
For those of you that listen topodcasts, we have just the one
(11:40):
for you.
Hi, I'm Ken Chester.
Tech Mobility Topics is apodcast where I upload
topic-specific videos each week.
Shorter than a full show.
These bite-sized programs arejust the thing, particularly if
you're interested in aparticular topic covered on the
weekly radio show.
From Apple Podcasts toiHeartRadio and many podcast
platforms in between, we got youcovered.
Speaker 3 (12:10):
Just enter Tech Mobility Topics in the search
bar.
Wherever you listen to podcasts, that light tells you this.
Nissan Sentra Coupe is low onwasher fluid, but it's also an
indicator of the Sentra's levelof standard equipment.
It has steering, morehorsepower, tilt, steering wheel
and wider tires.
It's also won two caa awards inthe 90s, which is exactly two
more than trussell has.
Plus, it costs hundreds less.
You just hate it when you runout of wiper fluid.
(12:32):
Visit your nissan dealer todayand test drive a nice, clean,
centric coupe, because it's timeto expect more from a car.
Speaker 2 (12:40):
The Nissan Sentra, a vehicle that is still in the
Nissan company lineup, adependable, solid, rock, solid
rock star of a car that they'vebeen building for over 40 years,
and back then that ad was from1995.
Ooh, more power, bigger tires,power steering.
(13:01):
Probably still had what we callhand crank windows, not power
windows, power windows, powersteering, air conditioning.
Back in the day, folks wasoptional optional hydraulic
brakes, manual steering, airconditioning.
Power steering came first,power brakes came second, but
for the longest time, even upinto the early 1990s, air
(13:25):
conditioning was not a standardfeature on every vehicle.
It is now.
You wouldn't think of owning avehicle without air conditioning
, but back then, yeah, it wasextremely possible to own a
vehicle without air conditioning.
And back in the day where Igrew up in New England, as I've
told you before, it only gotbrutally hot two weeks a year
back then, and that was themiddle of August.
(13:46):
June, july were okay, they werewarm, they weren't hot.
You rolled down the window, youhad a breeze, life was good.
You only really needed it fortwo weeks and most people did
not spend the money.
They did not spend the money,they did not see the reason why
they needed to.
So if you bought a car in theearly 1980s in New England,
chances are it didn't have airconditioning.
My first new car did not and Ibought it off the floor at
(14:11):
Newton Chrysler, plymouth inNewton Massachusetts, about
three blocks from where we livedDid not have air conditioning,
matter of fact.
I don't think my second car hadair conditioning and I'm not
sure about my third car, whichby that time was an 86.
Of all Sentra I think I endedup.
I did not own a vehicle withair conditioning until my 89
(14:34):
Plymouth Acclaim.
I think that was the first onethat had air and that's the
fourth car I owned.
So yeah, just an interestingthing, thought I'd share.
Now.
For years it was commonknowledge.
We kept being told by all thesafety security folks that with
the dawn of this suite ofadvanced driver assistance
technologies lane changemitigation, blindside warning,
(14:59):
rear vehicle warning, automaticemergency braking, all this
stuff, all this suite of safetyfeatures anti-lock brakes,
traction control would not onlyreduce the number of severity of
traffic accidents, but thatmotorists would expect a
reduction of insurance rates asa result Makes sense, right.
(15:21):
More safety equipment mitigatesaccidents and in fact accidents
have in fact gone down.
But something terrible hashappened that basically wipes
out all those savings, and it'sone of those unintended
consequences.
This is topic A.
Let me give you an example.
(15:41):
You're in an accident, yourairbags deploy, the chances of
your insurance company totalingthe car are pretty high.
And why would they do that?
It's very easy Once the metal'sbeen compromised even if an
expert crackerjack body shop wasable to restore it, that
(16:03):
metal's been fatigued, meaningthat the crash pressures against
it.
The sensors won't work rightbecause the metal is not at the
integrity that it was when itwas new.
They don't want to take thechance, even if they did
everything right and perfect.
The vehicle structure has beencompromised and once it's been
compromised it is never trulyreally the same.
(16:25):
And those sensors areengineered on certain given
certain pressures and certainforce exertion in order to react
, report or whatever.
Back in the day you got in anaccident, they'd take a look at
it, they'd fix it, put you backin the road, all is good.
And I'm sure you've askedyourself well, wow, it was only
(16:48):
about $3,000 worth of damage.
Why did they total the vehicle?
Because they did not want to beliable for a malfunction of
those sensors, any future orconsequential accident where you
might even just tap it and itcrumples and you get hurt where
(17:09):
either the airbags or the safetyequipment didn't deploy as
designed, because the sensorseither weren't calibrated right
or they were, but the metalaround it and the structures
around them had been compromisedin a previous accident.
That is what's causing yourinsurance premiums to go up.
(17:30):
Equipping vehicles with driverassist technology has an
increased cost of insurance andauto repairs and, in one person
quoted, it's almost becoming tooexpensive to fix the car.
Let me give an example.
Features like automaticemergency braking have helped
reduce claims frequency by 25%over the past five years, so
(17:53):
that's good, but a 60% increasein claim costs have offset any
financial savings in that period.
What happened?
Well, automatic emergencybraking is or front braking, is
the vehicle's sensors realizingthat something's in front of you
(18:15):
stopped dead and it reactsfaster than you could perceive
or act personally, bringing thevehicle to a stop or, at the
very least, breaking its speeddown to a safe level?
The problem is those sensors andeverything that goes with them,
the wiring and everything.
(18:36):
When they get damaged, theyhave to be replaced and
recalibrated.
Oh, and if and if thewindshield get cracked, it's not
just the same as replacing awindshield.
There are sensors in yourwindshield.
Those have to be recalibratedand paid for and, like the
automakers are like insurancecompanies, they hate risk.
So they've over-engineered allthis stuff to be safe.
(18:59):
They cannot afford to have itfail normally under normal
circumstances.
But the problem is inover-building this stuff.
It made it way more expensive.
Here's something that scared mea little bit in doing the
research for this story.
They say there's 33,000automotive repair shops in the
(19:20):
United States.
They said only a handful havethe proper lighting, perfectly
level floor andautomaker-specific targets to
calibrate sensors.
And you know why?
Because it could cost between$600,000 to $1 million to outfit
one shop with the rightequipment One shop.
(19:44):
So what are people doing?
Well, if the insurance companydidn't hold the vehicle but the
sensors need to be replaced,they may choosing to not
calibrate the sensors.
So not only do you have sensorsin a compromised vehicle, but
they haven't been calibrated,meaning they're not going to
work right or work at all.
Then maybe they trade or sellthe car and you're the second
(20:07):
owner.
You get it, you're in anaccident and stuff doesn't work
the way it's supposed to.
The airbags didn't deploy, thesensors didn't warn you.
You got hurt.
You didn't know that thevehicle you bought had
compromised sensors that hadn'tbeen calibrated.
The you didn't know that thevehicle you bought had
compromised sensors that hadn'tbeen calibrated.
The insurance company wantsnone of that.
That's why they're willing tototal the car and the problem is
that is reflected in your rates.
(20:28):
So the question is is ownershipstill the answer?
Is ownership still the answerwhere it costs over $12,000 a
year to own and operate avehicle, of which about $2,000
of that's insurance?
Maybe we need to take a look atthis whole model of private
vehicles.
Maybe we're past the point ofownership.
(20:49):
Maybe it just doesn't makesense anymore to own a vehicle
From factories to dealerships.
Thieves are targeting autoindustry cargo we explore next.
This is the Tech Mobilitypodcast.
Just about anywhere you canenjoy podcasts.
(21:24):
Be sure to follow us from ApplePodcasts, iheart Radio and many
platforms in between.
We are there.
Just enter the Tech Mobilitypodcast in the search bar.
Wherever you listen to podcasts, social media it's the place to
be.
We no exception.
Hi, I'm ken chester, host thetech mobility show several times
(21:46):
a week.
I post to tiktok several of thetopics that I cover on my
weekly radio show.
It's another way to keep up onmobility, technology news and
information.
I've built quite a library ofshort videos for your viewing
pleasure, so be sure to watch,like and subscribe.
That's the tech mobilityilityShow on TikTok.
Check it out.
(22:12):
From finished vehicles on thedealership lot to railroad
marshalling yards, to even partsand entire engines off of
factory assembly lines, cargotheft in the automotive industry
has become big business.
According to the Federal Bureauof Investigation, during 2023,
there were 1,360 cargo theftsworth over $35 million, and that
(22:35):
was within the United States.
Yikes, this is topic B.
Let me give you some context In2012,.
Well, first let me back up.
Let me define what cargo theftis.
Then I'll give you the numbers.
According to the FBI, cargotheft is defined as that
(22:58):
constitutes, in whole or in part, a commercial shipment of
freight moving in commerce.
So it's not the equivalent ofsomebody stealing an
individual's car.
We're not talking about that.
We're talking about thievesworking within the auto industry
to steal wholesale.
They ain't stealing a part.
This is not like Johnny Cash'slegendary song from way back in
(23:20):
the day, one Piece at a Time.
And if you didn't know the song, it's where he basically stole
him a Cadillac over 30 yearsworking on the line at GM and
tried to put it all together.
It was interesting.
The video was funny, you know.
No, we're not talking aboutthat.
In 2012, there were 183 cargothefts involving vehicles or
(23:44):
parts.
The value of that theft was$4.6 million.
It doesn't really jump until2017 to 2018, where it goes from
$4.9 million to $6.3 million,and then 2019, from $6 million
it doubles to $13.3 million, andthen by 2023, more than doubles
(24:08):
again to $35 million.
Why does it matter to you?
Why do you care?
Every time somebody does thatone, at the very least, if it's
your car or a part you'rewaiting on, then it just
extended the time that yourvehicle's out of service because
it got stolen or worse.
Yet it's being reflected in thecost of everything.
(24:29):
Somebody's got to cover thatthe automaker or the parts
company.
Their insurance premiums aregoing to go up and they're going
to pass that along.
So, directly or indirectly, youget to pay for that theft.
I once read an article some timeago just to give you an idea in
the auto industry just howcrazy this is.
This is about 50 years ago.
(24:52):
They were looking at a 1975Ford Granada, and if you don't
know what a Granada is, aGranada was a mid-sized
four-door sedan that Ford builtback in the day Knew.
The vehicle went for about$5,000.
They said in parts, in parts.
If you took the car parts, soldthe parts separately, it'd be
(25:14):
worth $35,000.
And that was in 1975.
Imagine now, particularly thepandemic made it much worse.
Remember when the automakerswere struggling for computer
components and things and therewere no vehicles anywhere to be
found.
So if you had a vehicle thatneeded to be fixed you couldn't
(25:35):
get parts anyway, which onlyhelped the thieves say, ooh, we
can make money.
So they stepped it up andstarted ripping off In one
really crazy situation.
If you can believe this and Iread it, I had to read it twice
because it was nuts.
I want to find this example.
(25:56):
Oh yeah, this past April policealleged the two former workers
at Kia India this is in India,get this now stole 1,008 engines
worth $2.3 million from afactory over three years.
How do you steal an automobileengine?
(26:18):
Even in a small Kia, thoseengines weigh two 300 pounds.
Number one, number two, withjust in time inventory.
I don't even know how they gotaround that.
That had to be a seriouslyinside job, because one of the
things that, at least in America, they adopted is something
called just-in-time inventory.
What that means is there's nowork and process inventory on
(26:46):
the floor from the supplierwaiting to be put in a vehicle.
The supplier gets the order,they build it, they send it and
it gets to the assembly lineminutes before it's to be
installed Minutes literally.
Hence called just-in-timebecause it gets there
just-in-time.
So I don't know what kind ofinventory process they were
using in India, to where youcould miss that many engines,
(27:08):
because that meant cars weremissing, engines that had to
mess up the assembly line.
One or two would have been badenough, but over a thousand
Yikes.
That was then.
This past March in the UnitedStates, police recovered eight
stolen Chevy Corvettes valued at$1.2 million, and they stole
(27:31):
them from the plant in BowlingGreen, kentucky.
How do you do that?
Again, some folks had to havesome knowledge.
I could almost think it cameoff the line and parked them in
the marshalling yard, and maybethey paid a security guard to
look the other way.
That's the only way they had tobe finished.
Cars waiting to be shipped,because there's something called
(27:53):
a marshalling yard at eachassembly plant where they park
the cars waiting to either beshipped out by truck or by rail
or whatever.
So there could be a momentwhere those vehicles could have
been driven off.
But trust me, you don't justwalk into an automobile assembly
plant.
You don't get on the ground,you don't.
(28:17):
No, no, every automaker hastheir own security, and I do
mean the word when I say force.
They've got fences, they've gotvideo, they've got cameras.
Yeah, you ain't going to dothat unless you had some help,
particularly Corvettes, becausewe ain't talking hundreds of
thousands of them, and theymanaged to steal eight of them,
eight of them, yikes.
Now the good news typically, ifit's whole cars, usually law
(28:42):
enforcement is able to get a lotof them back, but they don't
get them all back.
I think in the case of GM, withthe suite of security features
that come with OnStar, wherethey can track them and
literally shut them downremotely, should have mitigated
some of that quite a bit.
You would think.
But yeah, this is the thingthat's happening.
(29:02):
It's happening in the autoindustry, it's been happening
for decades, but again, with theaverage cost of a vehicle
around $50,000 and the fact thatthere's so many parts that are
so valuable, that people needand that are required in the
manufacturing of an automobile,most people don't realize that
(29:23):
your average automobile factoryworks with anywhere from 700 to
1,500 different suppliers aroundthe world and they're
assembling in a vehicle roughly15,000 parts and it roughly
takes 24 hours from the timethat job is started as a frame
to the time it rolls out the endof the plant, fully made.
(29:44):
A lot of things can happen in acourse of a day, parts going
every which way, but it's achoreographed dance.
So in order, you're not justgoing to walk into a plant and
walk out.
It don't work that way.
Thieves are getting bold andthey're getting sophisticated
(30:05):
and as long as autos continue tobe a place where money can be
made and people think it's stillworth the risk, they will
continue to do it.
The problem can be made andpeople think it's still worth
the risk, they will continue todo it.
The problem is we all pay forit.
That ends up costing all of us.
But I wanted to share that withyou because it's gotten crazy
in the last few years.
It's just gotten out of controland with the rise of EVs and
(30:27):
all these electronics theyanticipate it will only continue
to get worse.
We'll see what happens,particularly with these vehicles
that drive themselves.
I wonder what happens if you'reable to hack the thing, can you
get it to drive to your house,and then you have the vehicle
and they don't know where itwent.
That will be something worthwatching as these EVs evolve in
the coming years.
(30:47):
If that becomes a thing thatthey literally steal them in
plain sight, as of the end ofSeptember, ev credits are toast.
Here's what you need to know weare the Tech Mobility Show.
To learn more about the TechMobility Show, start by visiting
(31:10):
our website.
Hi, I'm Ken Chester, host ofthe Tech Mobility Show.
The website is a treasure troveof information about me and the
show, as well as where to findit on the radio across the
country.
Keep up with the happenings ofthe Tech Mobility Show by
visiting techmobilityshow.
That's techmobilityshow.
You can also drop us a line attalk at techmobilityshow.
(31:44):
You can also drop us a line attalk at techmobilityshow.
Short videos of some of the hottopics that I cover during my
weekly radio program.
I've designed these videos tobe informative and entertaining.
It's another way to keep up oncurrent mobility and technology
news and information.
Be sure to watch, like andsubscribe to my channel.
That's the Tech Mobility Showon YouTube.
Check it out.
Speaker 1 (32:06):
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Speaker 2 (32:39):
Social media is the place to be these days, and
we're no exception.
I'm Ken Chester of the TechMobility Show.
If you enjoy my program, thenyou will also enjoy my weekly
Instagram videos, from thelatest vehicle reviews to timely
commentary on a variety ofmobility and technology-related
topics.
These short features aredesigned to inform and delight
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Be sure to watch, like andfollow us on Instagram.
(33:01):
You can find us by typing theTech Mobility Show in the search
bar.
Recent legislation passed byCongress and signed by the
president will bring dramaticchanges to EV policy in the
United States.
One very public result of thischanging tide is the elimination
(33:21):
of EV credits as of the end ofSeptember.
But as one famous circus parkersaid, wait, there's more.
This is Topic C.
Regardless of where you are onthe spectrum, whether you love
EVs, hate EVs, think everybodyshould drive them, think nobody
should make you drive them,doesn't matter.
(33:43):
I want to share with you sometruth, some facts here, so that
you can whatever when you havethe conversation, you can tell
it right.
So let me start.
I'm just going to walk you downsome things, things you know,
some things you might not know.
So let's get started.
First of all, the obviousfederal tax credit for new EVs,
(34:06):
which is $7,500, will endSeptember 30th this year.
Federal tax credit for used EVsand that was the one recently
passed in one I think it was thenot to build back better, but
one of the previousadministrations passed where you
could get a credit for buying aused EV, subject to certain
(34:29):
qualifications.
That $4,000 credit will alsoend same day, end of September.
For those of you in business,it's called the 45W Commercial
Clean Vehicles Credit.
In business it's called the 45WCommercial Clean Vehicles
Credit.
In other words, the governmentwill help you subsidize a
purchase of a clean commercialtruck vehicle, whether it is
(34:50):
alternative fuel or hybrid EVtruck, whatever.
That was up to $40,000 pervehicle for companies buying
electric cars or trucks and thatincludes businesses that lease
the vehicles to consumers.
That also ends September 30th.
So if you were a leasingcompany that was buying vehicles
(35:12):
to lease out, buying cleanvehicles, and you were getting a
credit, that credit goes away.
Here's something that you didn'tknow the bill eliminates
penalties for automakers thatfail to meet federal corporate
average fuel economy standards.
No penalties for meeting them,for not meeting them.
(35:36):
So what does that mean?
It means, number one, that ifyou're an American consumer that
you're going to pay more forfuel Because the vehicles which
would have been more efficient.
Now there's no incentive forthem to continue and there's a
caveat in that.
I want to finish reading this.
(35:57):
I'm going to come back to thecaveat reading this.
I'm going to come back to thecaveat.
It also, if an automaker wasliterally on a cusp, makes them
less competitive globally,because every automaker that
sells in the United States sellsaround the world and it's not
one size fits all.
They have to deal with all ofthis stuff.
(36:17):
They're spending billions ofdollars, so they want to get the
most bang for their buck.
This really honestly doesn'thelp the automakers when you
think about it.
Because if the rest of theworld is demanding tougher
standards and the United Statespicks their foot up and says, no
, no, it's okay, you don't needit, it's okay If the automaker
does that in the United States,they still got to spend that
(36:38):
money overseas.
So why not spread that costover the vehicles you're selling
here and now?
You won't, because you tookyour foot up.
That makes you less competitive, not more competitive.
And with the price of gasolinebeing what it is right now and
here in Iowa, if you are buyingethanol what we call E15, which
(37:00):
is 15% ethanol it's stillhovering right around $3 a
gallon.
It's just a tick below three.
That's high around here.
We've been paying in the lowtwos for the longest.
This should take prices up,actually, because if cars are
less efficient then they'regoing to consume more.
That's going to create moredemand.
(37:21):
That's going to drive prices up.
Something else that you may nothave realized alternative fuel
refueling, property credits,credits you could get at home
for installing an EV charger,for example those end next June,
june 30th, 2026.
(37:41):
Now it does not affect anystate level programs for any
state.
So if your state has some sortof EV credit or alternative fuel
refueling credit or somethinglike that, not a problem.
But there's more.
You may have heard this thereis a deduction for car loan
(38:02):
interest for American-madevehicles.
What you may not remember,unless you're a person of a
certain age, is until 1991, whatwe used to call retail interest
on retail credit, like creditcards and car loans and stuff,
was all deductible.
That went away over 30 yearsago.
They're bringing it back justfor American-made vehicles.
My problem is, whose definitionof American-made?
(38:25):
Is it 50%, 60%, 70%, becausethere ain't no vehicle on the
road, even the ones that havehigh American content, that are
100% American-made.
Tesla's come the closest, someHonda's second, but not 100%,
100%.
So who's going to set that barthe Commerce Department?
And what are they going to useto set it?
(38:47):
And how are they going tomeasure it, because vehicles and
content come from all over andliterally could change year to
year?
So there's that From 2025 to2028, interest paid on loans for
purchasing a personal usedvehicle will no longer be
considered personal interest andcan be deducted.
(39:07):
Final assembly must occur in theUnited States.
That's one definition Maxdeductible interest of $10,000
per year and it phases out fortaxpayers that make more than
$100,000 single and $200,000joint.
But you only get it for threeyears.
What's the point?
The average car loan is fiveand right now, probably if
you're driving a pickup truckthat costs you north of 60,
(39:29):
you're probably got a six orseven year note on that, and if
you just bought it this year,you're only going to get credit
for three.
You're still going to be hardout of pocket.
Okay, here's another one.
This is an interesting curvethat you may not know about
Energy storage.
It's called the 48E InvestmentTax Credit.
It has a domestic contentrequirement for both the
(39:51):
facility and the technology.
But now you've got to meet both.
And there are only threecompanies in the United States
doing that now LG Energy,envision, aesc and guess what,
tesla Interesting.
But remember, you thought itwas just EV credits.
Let me give you this.
(40:11):
I'm talking to you, homeownersRooftop solar.
The bill terminates the 30% taxcredit for rooftop solar
installations at the end of thisyear.
If you were thinking aboutinstalling solar, do it now,
because you won't have that.
You will not have that creditafter the end of the year.
Same thing goes with taxcredits for geothermal heat
(40:33):
pumps and other home devices endof the year All sorts of things
.
The bill kills cleanelectricity investment and
production tax credits for windand solar that have been in
place since 1995 and 1992.
Solar and wind farms andantiservice after 2027 will no
longer be eligible for thecredits.
This is going to bring therenewable industry to a
(40:56):
screeching halt, which meansthat's going to have some real
nasty impact out here in Iowa,because we both do solar and we
do a lot of wind out here.
So there's a lot in it, a lotof what you know is going to be
at the end of this year Some arestaggered Solar, wind, ev
(41:17):
credits gone, if you're ahomeowner, gone.
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