May has come and gone – with the official start of summer nearly upon us, let’s look back on our top seven auto news stories of the month! From Tesla leaks to Ford embracing Tesla charging for its EVs to new rule proposals by the National Highway Traffic Safety Administration (NHTSA), we’ve got it all in this May 2023 auto news roundup.
Tesla Leaks: Whistleblower Unveils 100GB of Company Information
The Story:
A Tesla whistleblower handed over 23,000 internal files from Tesla to German news outlet Handelsblatt.
Read All About It:
Jalopnik: Whistleblower Drops 100 Gigabytes Of Tesla Secrets To German News Site: Report
The Guardian: Report: ‘massive’ Tesla leak reveals data breaches, thousands of safety complaints
Planetizen: Key Points From the Tesla Data Leak
Take a Shortcut:
Handelsblatt published the broad strokes of the data despite warnings of legal action from Tesla. The German publication believes that their reporting is legal under European Union (EU) laws concerning data breaches and whistleblower complaints. The files included:
- Over 2,400 self-acceleration complaints.
- Over 4,000 braking function problems.
- Over 1,000 crash reports.
- Over 3,000 reports stating consumer concerns with Tesla driver assistance systems.
- Internal company protocols advising Tesla employees to respond to customer complaints verbally and in person instead of via email, text, or voicemail.
- The personal information of over 100,000 current and former Tesla employees.
If the data breach is verified, it would violate the General Data Protection Regulation (GDPR), which could lead to the EU fining Tesla for up to 4% of its annual sales. In response to the news, various data protection watchdog organizations have stated they are looking into the data breach, marking the Tesla leaks as one of the biggest stories in this May 2023 auto news recap.
Ford Announces that Its EVs will Use Tesla Chargers Across U.S.
The Story:
Ford and Tesla announced a partnership that will enable Ford owners to access over 12,000 Tesla Superchargers across the U.S. and Canada.
NBC News: Ford EVs will use Tesla charging tech in surprise partnership between rival automakers
Take a Shortcut:
Ford CEO Jim Farley and Tesla CEO Elon Musk announced the partnership during a livestream on Twitter, surprising anyone and everyone who’s been keeping tabs on how the automakers have jockeyed against each other for leadership in the EV market.
It’s a move that puts Tesla even closer to positioning its chargers as “the default” for EV owners across the U.S. Once limited to just Tesla owners, Tesla announced earlier this year that it would make 7,500 chargers open to the public, as well as opening its proprietary charging standard up to other charger manufacturers.
NHTSA Proposes New Automatic Emergency Braking Rules for “Nearly All” U.S. Cars & Light Trucks
The Story:
A new rule proposed by the NHTSA would require automakers to include automatic emergency braking systems in almost all U.S. vehicles.
U.S. Department of Transportation: NHTSA Proposes Automatic Emergency Braking Requirements for New Vehicles
Take a shortcut: Earlier this year, a Governors Highway Safety Association (GHSA) analysis found that pedestrian deaths in the U.S. hit a 40-year high.
As traffic fatalities keep rising, the NHTSA is proposing a new rule that would require automakers to offer automatic emergency braking (AEB) for both other cars and pedestrians on all passenger cars and light trucks. The NHTSA forecasts that, if finalized, the rule would save at least 360 lives and reduce injuries by at least 24,000 annually. These rules accompany legislation introduced by Senator Richard Blumenthal that would require automakers to equip motor vehicles with blind zone monitoring systems to reduce increasingly common blind-zone accidents.
Ford CEO Jim Farley Says EV Cost Parity Is Still Years Away
The Story:
Ford CEO Jim Farley told investors that Electric Vehicles (EVs) would likely continue to cost more than their Internal Combustion Engine (ICE) counterparts until third-generation models go into production — as late as 2030.
Reuters: Ford CEO says EV cost parity may not come until after 2030 | Reuters
Take a Shortcut:
Farley’s estimates are somewhat pessimistic — some auto industry analysts have predicted cost parity as soon as 2025. As producing EVs becomes easier and new innovations allow for cheaper production and longer range, EV prices are expected to continue dropping relative to ICE alternatives.
Not factored into this equation are the long-term savings that often make EVs cheaper to own over the course of a vehicle’s lifespan. Government tax incentives can make federal taxes cheaper for EV owners, who also save around $800-1,000 on average a year on gas, and about $4,600 in maintenance fees over their car’s life.
EV Batteries Present Challenges for Insurers
The Story:
A report by Reuters found that repairing electric vehicle battery packs is difficult or even impossible in many cases, leading insurers to write off EVs after accidents.
Reuters: Scratched EV battery? Your insurer may have to junk the whole car | Reuters
Take a Shortcut:
As much as 50% of an EV’s cost comes from the battery in it, and producing EVs is less environmentally friendly than many assume. As a result, EVs need to run for thousands of miles before constituting a net emissions saving over ICE vehicles — but many never make it that far if they get in an accident, as we found out during this May 2023 auto news cycle.
The difficulty of assessing damage to — and subsequently repairing — EV battery packs leads insurers to write them off after an accident. If that trend persists, insurers could start placing even higher premiums on EVs, slowing the EV adoption rate. According to Reuters, this issue is most prominent in Teslas, where the battery pack is a structural component of the car — both Ford and GM have marketed their packs as more easily repairable.
Hyundai, Kia Settle Class-Action Theft Suit for over $200 Million
The Story:
Hyundai and Kia recently settled a class action lawsuit for over $200 million, up to $145 million of which will go to consumers.
NBC News: Hyundai, Kia agree to $200 million settlement with customers over car thefts
Take a shortcut: Videos of people stealing Hyundai and Kia cars by taking advantage of insufficient security systems on push-button cars went viral on multiple social media platforms earlier this year, and lawyers took note. Up to $145 million of the resulting class-action lawsuit and $200 million settlement goes toward owners of push-button ignition Kia and Hyundai models whose cars were stolen.
Both Kia and Hyundai announced security software patches for push-button vehicles that should make them harder to steal.
BMW Unveils 5-Series, Electric & Hybrid Powertrains Take Center-Stage
The Story:
BMW announced the 2024 5-series, featuring the addition of electric and hybrid powertrains.
Motortrend: 2024 BMW 5 Series and i5 EV First Look: Electrified Either Way
Take a shortcut: BMW announced that the 530i, 530i XDrive, and 540i XDrive, a U.S.-only exclusive, will be the only ICE 5-series models — and come with 48-volt hybrid powertrain alternatives. The i5 EDrive40 features a rear-mounted electric motor, while the i5 M60 xDrive comes with two drive units, offering more kick compared to the EDrive40.
BMW announced that its all-electric i4 M50 was the automaker’s best-selling M model worldwide in 2022. As EV sales continue to beat previous bests and governments continue to incentivize the production of EVs, lineups of ICE classics with new EV and hybrid alternatives should come as no surprise.
That rounds it up for this recap of May 2023 auto news. Stay tuned for more auto news roundups as news breaks and recaps to catch anything you missed!
