CAR WARS 2019 - AUTOLINE THIS WEEK 2318

EV Channels Review

This Autoline This Week episode features John Murphy of Bank of America Merrill Lynch discussing his 'Car Wars' study. The panel delves into a projected downturn in the US auto market, forecasting a drop to 13-14 million units by 2022, driven by a decline in retail demand and fleet saturation. Murphy highlights that while EVs are increasing, their high cost currently limits them to the luxury segment, with significant battery cost reductions needed for broader adoption. The discussion also touches on Tesla's competitive challenges from traditional luxury brands, the complexities of over-the-air updates and cybersecurity risks, and the ongoing trend of mergers and acquisitions in the industry. Furthermore, the conversation explores potential impacts of tariffs, the USMCA trade agreement, and the upcoming UAW contract negotiations, emphasizing the push for increased North American content and job security. Finally, the panel briefly examines the long-term prospects of autonomous driving technology, noting the delayed timeline for Level 4/5 autonomy but acknowledging its potential to reduce costs, increase demand, and improve travel speed.