Photo: Brandon Bell (Getty Images)
The price of a tank of gas has fallen since hitting a record high in June, BMW saw sales fall in the first half of the year and a European nation is experimenting with free public transport. All that and more in The Morning Shift for July 8, 2022.
1: Fuel prices continue to fall
Remember when we all watched in horror as gas prices soared to over $5 a gallon in many states last month? Well, the Wall Street Journal reports that since prices peaked, we’ve had price declines at the pump for more than three weeks straight.
According to WSJ, the average cost of a gallon of gasoline here in the US has fallen from $5.02 on June 14th to $4.75 on July 7th. This decline was due to falling fuel demand at service stations and a 16% drop in crude oil costs. According to WSJ:
“Pre-Independence Day gasoline sales lagged behind previous years. Same-store gasoline demand for the week ended July 2 fell about 7% from the same period last year, according to OPIS data. Demand fell about 13% this week compared to the same period in 2019. Gasoline demand fell to its lowest level in nearly a decade in mid-to-late May, according to government data.
The falling fuel costs were tracked in an AAA report released earlier this week. The paper added that prices could follow if demand for fuel falls further.
However, AAA warned that the relief could be short-lived. The WSJ adds:
“However, July is typically the busiest month for demand as more Americans take to the streets, so this price-cutting trend may be short-lived,” AAA spokesman Andrew Gross said in a statement.”
In addition, the lower gas price could contribute to an increase in demand. This in turn could drive prices up again. It really is a vicious circle.
2nd place: Chip shortage hits BMW sales
Chip shortages and lockdowns related to Covid-19 are still wreaking havoc in the auto industry. If it’s not a cut in vehicle features or delays in production, it’s a drop in sales. And that is exactly what BMW experienced in the first half of 2022.
R reports that the German automaker sold 13% fewer cars in the first six months of 2022 than in the same period last year. The company reportedly sold 1.16 million BMWs, Minis and Rolls-Royce cars earlier this year, well below its figures for 2021 – “the best-selling period in the company’s history,” according to R.
BMW’s sales were hit particularly hard in the second quarter between April and June 2022, when deliveries of vehicles across the portfolio fell 20%. The company attributed this drop in sales to “chip shortages and temporary lockdowns in China.”
But that wasn’t all bad news for the brand, as sales of electric cars soared 110% during the period. This means that almost 76,000 BMW and Mini electric cars were sold in the first half of 2022.
3: Argo AI fires dozens
Self-driving cars could be the future, but their development has been plagued by myriad problems over the years. If it’s not cops trying to hail a self-driving cab, it’s a Tesla that doesn’t recognize signs and cyclists. But the big problem for autonomous car startup Argo AI seems to be staffing.
In a statement from Automotive News, the company said it was laying off nearly 150 employees from different parts of the company as it aims to continue growing in the future. According to Automotive News:
An Argo spokesman said the layoffs were part of “prudent adjustments to our business plan” as the company planned for future growth.
“Former Argo employees who have worked in the company’s human resources, recruiting, technical procurement and communications departments shared news of their layoffs on their respective LinkedIn profiles.”
The Pittsburgh-based self-driving car maker seemed to be on the mend a bit in recent months. The company received investment from Ford and helped enhance the Blue Oval’s autonomous capabilities. It also tested its own self-driving systems with test drives in Miami.
Despite the downsizing, Argo AI says it still has more than 2,000 employees around the world and will continue to conduct test drives in Florida, where driving with a safety driver at the wheel is no longer required.
4th: This is beyond a yoke
If you believe some people, the steering wheel is on the way out. Instead, we’ll all soon be riding around with a fighter jet-like yoke in front, controlling the direction our wheels are pointing. But while Tesla has rolled out such an input in recent months with varying degrees of success, it sounds like Lexus is actually reinventing the wheel.
Automotive News reports that the company is developing a new “ultra-precision steer-by-wire system” that will premiere in its upcoming all-electric crossover RZ. The system replaces the mechanical connection between the yoke and the front wheels, instead electronically sending the signals from the yoke to the wheels. The report says:
“The setup allows the Lexus yoke to deliver a 150 degree steering angle between the right and left lock positions. The driver does not have to turn the fork bridge all the way or change his grip when manoeuvring, such as turning or parking in the garage.”
This reduction in turning angle also means controls like turn signals and windshield wipers can stay on the wheel and move as you turn. Automotive News adds that the controls for this have been shortened so you don’t accidentally hit them with your legs.
How does all this tech behind the design feel as Lexus intends to bring its yoke to the US? Is it refreshing to see someone trying to reinvent the wheel, or were things fine the way they are?
5th: Free ticket
People don’t take the train because they say it’s unreliable, expensive and sometimes a bit gross. But what if I told you there was a magical place where this wasn’t the case? A place where trains ran on schedule, didn’t cost the earth, and were meticulously maintained? This place is called Europe.
And while most of mainland Europe has developed a fairly impressive and affordable rail network, one state on the block has gone one step further by conducting a trial of free public transport for all. According to Bloomberg, the country of Luxembourg has been offering free travel on trains and buses for residents since 2020.
Not a particularly car-hostile place, the state has the highest vehicle density on the continent at 696 cars per 1,000 people. But the population is growing, and lawmakers fear its infrastructure may not be able to support an increase in traffic to match that growth. So they tried free public transport to get people off the streets and onto buses and trains. According to Bloomberg:
“On February 29, 2020, it became the first nation in the world to make all on-site public transportation completely free. With the exception of (not particularly popular) first-class tickets, no one has since paid a penny for bus, tram or train travel within Luxembourg’s borders.”
The policy has so far proved popular with travelers in the country, but Bloomberg noted that free transit alone wasn’t enough to entice people to take the train. The site says:
“To get people out of an unsustainable car addiction, you have to make driving more expensive and difficult – something the center-left government in Luxembourg has so far been wary of.”
As a result, traffic levels in the country remain similar to 2019. And experts suggest the free transportation offering will be more likely to be embraced by people who would walk or cycle than those who would normally drive.
Back: strike
Neutral: What should I hear?
I feel like my music listening habits have stagnated lately. Aside from the traditional onslaught of Arcade Fire and Arctic Monkeys, I had a lovely week listening to Jack White and Christine and the Queens. So if you have any suggestions for great bands for me to check out, I’m all ears.