Biden Administration Could Tie Microchip Subsidies to Union Jobs

First Up 12/01/21

Kia's Design Boss Would Welcome a Pickup 'With Open Arms'

Kia appears to be inching towards America's lucrative pickup segment. The company reportedly approved the project in 2019 and Auto Blog reports that the head of its design department recently stated that he would love to work on a truck. "I'd welcome [a pickup] with open arms," said Karim Habib in an interview with British magazine Autocar. Kia's heritage certainly isn't rooted in trucks, but the firm has demonstrated it's capable of venturing into new segments when needed (notably by releasing the Telluride), and sister company Hyundai argued with the Santa Cruz that stepping into the truck world doesn't require decades of pickup-building experience. Habib was seemingly alluding to one that could be credibly sold in the United States: "It would fit our portfolio and the brand. In the pickup market in the United States, there is a huge amount of loyalty to existing brands. But there are also new things opening up, so maybe there is room for another brand." For more on the paths Kia could follow to get to the truck market, click here.

Biden Administration Could Tie Microchip Subsidies to Union Jobs

The Biden administration's push for Congress to pass legislation by year's end that would incentivize semiconductor manufacturers to build new plants in the U.S. amid a global supply shortage could come with strings attached for union representation in the workforce. During a visit to Michigan this week, U.S. Commerce Secretary Gina Raimondo did not rule out the possibility of her department making unionized labor a "string" attached to billions of dollars in federal grants in the CHIPS Act. Automotive News reports that The CHIPS Act pending in the U.S. House includes $52 billion in taxpayer subsidies for the R&D and manufacturing of microchips used in everything from Whirlpool washing machines to cars. "I am extremely focused on making sure that every penny is implemented and is transparent and that we get out of this investment what we need so that we create good jobs — good, union, high-paying jobs in America," Raimondo said. "And there will be strings attached." Click here for more.

New Lexus Interface (Finally) Replaces Remote Touch

Automakers have long been hobbled by the slow pace of vehicle planning and product cycles versus the rapid changes in consumer technology. Case in point: Lexus’ frustrating and ill-fated Remote Touch infotainment interface. According to Wards, what seemed like a great idea in 2010 was already dated in a tech (and automotive) world moving away from BlackBerry and buttons and toward smartphone touchscreens. Enter the touchscreen-only Lexus Interface infotainment system unveiled last week at the 2021 Los Angeles Auto Show and available now in the ’22 Lexus NX, early next year in the ’22 LX and eventually trickling down to other models. Click here to see it. The Lexus Interface is available with either a 14-in. or 9.8-in. high-definition touchscreen that overall allows for more straightforward and intuitive operation. With the subscription-based Connected Services activated (which is free for three years with the 14-in. system and requires a monthly subscription with the smaller screen), the Lexus Interface delivers freshly updated directions and map data from the cloud. For more details, click here.

VW Uses Amazon Boxes, Free Music to Promote Taos

Volkswagen Group of America said it will use the sides of Amazon boxes this holiday season to put virtual butts in the virtual seats of its new Taos subcompact crossover, and reward participants with three months of premium music streaming for virtually going along for the ride. The campaign uses a QR code printed on the side of more than 1 million Amazon boxes to direct consumers to a website, where they are able to experience the Taos and its features across a digital map all while listening to one of four digital soundtracks. By recording the virtual drives, consumers are able to unlock three months of Amazon Music Unlimited at no additional cost, Volkswagen says. According to Automotive News, VW is not the first automaker to turn to Amazon boxes to promote its products. In 2019, Chevrolet promoted its redesigned Silverado pickup on the sides of specially printed Amazon boxes. The delivery behemoth has been selling box-side advertising since 2015, and now does so globally. For more on VW’s marketing plans for the Taos, click here.

Auto Executives Expect EVs Will Own Half of U.S., China Markets by 2030 – Survey

Auto industry executives expect electric vehicles will make up just over half of new vehicle sales in the United States and China by 2030, and could do so without receiving government subsidies, according to a new survey by accounting and consulting firm KPMG. But combustion vehicles, including hybrids, are expected to retain a significant share of most major vehicle markets for years to come, according to KPMG's latest annual survey of 1,000 auto industry executives. Reuters reports that the speed at which automakers can phase out combustion engines and the carbon dioxide they emit is a pivotal issue for the global auto industry. Electric vehicle sales around the world have been fueled so far by government subsidies. But 77 percent of the respondents to KPMG's survey said electric vehicles can achieve mass adoption within ten years without government aid as battery costs drop to parity with petroleum-fueled engines. However, 91 percent of auto executives said they support government subsidies. For more survey results, click here.

An Inside Look at the State of Auto Auctions with KAR’s Peter Kelly

Last month, KAR Global sold over 80% of its vehicles in a purely digital setting. Peter Kelly, KAR Global CEO, chatted with Automotive News editor Jamie Butters about the industry’s digital transformation, KAR’s marketplaces, acquisitions and more in a recent episode of the Daily Drive podcast.  

Catch the full episode here.

Around the Web

Will Future Electric BMWs Be Fun to Drive? [Auto Week]

An Auto Show for the Raddest Cars of the ’80s and ’90s [NYT]

Drivers Are Feeling The Burn Of High Gas Prices [Jalopnik]

Arc Lands $30 Million for Its $300,000 Electric Boat [Bloomberg]

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