Blending Tradition with Innovation| #567 - THE DRIVE with Alan Taylor

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Dr. Brett McMickell, the senior technologist for Kubota North America, recently highlighted the innovative features of the company’s latest electric tractor. This cutting-edge machine has six independent motors, significantly enhancing its functionality and versatility for various agricultural tasks. During an engaging segment with show host Alan Taylor, who expressed his deep appreciation for tractors, they discussed the advantages of Kubota’s electric tractor, particularly its ability to alleviate the common concern of range anxiety many users encounter with electric vehicles. At the prestigious Consumer Electronics Show, Kubota made a strong impression by showcasing electric and autonomous tractors integrated with advanced artificial intelligence technology. The president of Kubota North America reflected on a bit of poignant advice from his father, who once predicted that the day would come when tractors would operate independently. While the rise of autonomous tractors marks a significant technological advancement in the agricultural sector, it’s evident that many enthusiasts still cherish the experience of driving their tractors, blending tradition with innovation.

Brian Moody, the Executive Editor of AutoTrader.com and KBB.com, has returned from a trip to Chicago with insights about the current automotive market. He reports that average transaction prices for vehicles are experiencing a notable decline, an ongoing trend. In this climate, many consumers are grappling with the impact of elevated interest rates on their auto loans and are contemplating refinance options. However, before making such a crucial decision, exploring the array of new car incentives available in the market is advisable. Your credit score may unlock access to significant deals, making thorough research essential. Interestingly, there has been a shift in the focus of automakers, who are now turning their attention from electric vehicles (EVs) to hybrid models. This change arises from a realization that consumer demand for electric cars still needs to meet expectations. Hybrids are becoming increasingly appealing, as they often provide better performance, reliability, and cost-effectiveness for daily driving needs. Brands like Kia, Hyundai, and Toyota have made remarkable strides in enhancing their reliability and overall quality, positioning themselves favorably in the eyes of consumers. As the industry navigates these evolving preferences, the key to addressing the challenges faced by electric vehicles lies in improving their capabilities. In an intriguing development, Akio Toyoda, chairman of Toyota, recently took a race car powered by a hydrogen-burning engine for a spin, highlighting his belief that internal combustion engines still hold considerable promise and potential for the future.

BJ Killeen, an automotive journalist known as the Voice of Reason, has recently shown an interest in tractors while discussing the future of automotive manufacturing. He predicts that traditional car manufacturers may decline in 20 to 30 years, potentially replaced by tech companies like Apple, Google, and a joint venture between Sony and Honda, which plans to launch several vehicles including a “Fella” sedan in 2025. At the recent Consumer Electronics Show, there was significant excitement around Sony’s entry into the automotive sector, although Killeen finds the name “Fella” questionable, recalling past poorly received car names. Killeen also notes that Shell is shutting down hydrogen fuel stations in California due to supply issues and a market shift towards electric vehicles (EVs). He highlights that Tesla’s revenue model is often misunderstood; a significant portion comes from selling regulatory credits, which are generated from exceeding government EV production targets. In 2022, Tesla earned about $1.79 billion from these credits, totaling nearly $9 billion since 2009. Many car manufacturers, except those like Volvo with strong EV fleets, buy these credits to avoid fines for not meeting emissions standards, making this a key aspect of Tesla’s financial success.

Lauren Fix, Editor-in-Chief for Car Coach Reports.is back with a discussion around the Tesla Cybertruck, highlighting skepticism and curiosity regarding its sharp design, which raises safety concerns, especially in crosswalks. This is compounded by Tesla’s reputation amid criticisms of its autopilot features. At a recent Tesla event, onlookers tested the vehicle’s durability by kicking it, and some felt their karate experience would prevent damage. While skepticism remains, they believed their assessment was fair. The conversation also focused on the vehicle’s 304 stainless steel construction, known for rust resistance. This contrasts with standard materials, which can rust within years. Concerns about long-term ownership of a $100,000 vehicle exposed to elements were raised. In tonight’s discussion, we explored the potential ramifications for the auto industry if Donald Trump were reelected. There’s a belief that the current administration has not performed well, impacting many negatively. If Trump returns, he may eliminate tax credits for electric vehicles, which could severely limit market incentives. States like California, Illinois, and New Jersey are already out of funds for these credits. As a response, automakers might shift focus back to hybrids and plug-in hybrids, leading to lower car prices. Toyota is already investing in hybrid and hydrogen technologies, recognizing the practicality of vehicles like the Prius, which offers around 55 miles per gallon. A Trump reelection could shift the automotive landscape towards more traditional, fuel-efficient consumer options. Recent rumors suggest that Mercedes-Benz will focus on lower-priced, smaller cars for the U.S. market in 2024. Many question the logic behind this move, recalling the failures of past models like the Cadillac Cimarron, which diluted brand prestige. Mercedes is aiming at the same segment as Kia and Hyundai, which raises concerns about profitability while straying from its luxury roots. Additionally, car ownership costs have surged, increasing nearly $2,000 in 2023 to about $12,182, with average vehicle prices reaching around $47,358, up from $39,000 in 2021. This trend reflects the significant shifts in the automotive market following the pandemic.

[00:00:00] – Dr. Brett McMickell
[00:07:24] – Kubota North America
[00:13:00] – Tradition vs Innovation
[00:20:52] – Contributor Brian Moody
[00:29:11] – EV’s Not Meeting Expectations
[00:37:22] – Akio Toyoda
[00:44:12] – Contributor BJ Killeen
[00:51:08] – Decline of Manufacturers
[00:57:12] – Tesla’s Financial Success
[01:05:02] – Contributor Lauren Fix
[01:13:40] – Tesla’s Cyber Truck
[01:21:32] – Cost of Ownership is Up

CREDITS

Host: Alan Taylor
Producer: Dave Milligan
Copy Editor: Colleen Mahi

Special Guest: Dr. Brett McMichael

Contributor: Brian Moody
Contributor: BJ Killeen
Contributor: Lauren Fix

EXPLORE MORE WITH HELPFUL LINKS:

Special Guest: Dr. Brett McMichael | Senior technologist for Kubota North America
Contributor: Brian Moody | Executive Editor of Auto Trader.com and KBB.com
Contributor: BJ Killeen | Automotive Journalist and Voice of Reason
Contributor: Lauren Fix | Editor in-Chief for Car Coach Reports.

Vehicles Discussed:

Cybertruck

OUR SPONSORS & SUPPORTED CHARITIES:

• Austin Hatcher Foundation
• AutoTempest.com
• Brembo
• Dodge
• Foundation of Human Understanding
• Shell
• Subaru

About THE DRIVE with Alan Taylor

THE DRIVE with Alan Taylor puts you in the driver’s seat for a unique, fast paced look at today’s automotive industry. This is your pedal-to-the-metal, two-hour thrill ride devoted to the latest car news and test-drive results, how-to tips, car maintenance tips, auto show coverage, expert insights and behind-the-scenes race day action. Don’t miss exclusive interviews with top auto executives, athletes, celebrities and prominent newsmakers from around the world.