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GM, Chrysler bailouts saved 2.6 million jobs

The Center for Automotive Research (CAR) has been studying the effects of the General Motors and Chrysler bailouts in 2009. Now that the US Treasury has officially sold off the rest of its stake in GM (and Chrysler has already paid back its loan), CAR has released its study on the effects of the bailout with this concluding note: "CAR is confident that in the years ahead, this peacetime intervention in the private sector by the US government will be seen as one of the most successful in US economic history."
Big words, for sure, but there's plenty of evidence to back up the claim. Bailing out GM alone saved 1.2-million jobs. If both GM and Chrysler hadn't been bailed out, US employment would have been reduced by 2.631-million jobs in 2009 and another 1.519-million jobs in 2010, according to the study. If both automakers were allowed to fail, personal income in the US would have decreased by $173.5 billion in 2009 and $110.9 billion in 2010. Instead, the study found that $284.4 billion of personal income was saved by the bailouts.

Jeep in St. Louis hacked from Pittsburgh

One of America's most popular vehicles contains a security flaw that allows hackers to remotely commandeer it from anywhere on the planet. Cyber-security researchers Chris Valasek and Charlie Miller say they've accessed critical vehicle controls on a 2014 Jeep Cherokee that allowed them to remotely control critical vehicle functions like braking, transmission function, and steering. Automakers have downplayed the possibility a car could be remotely compromised, but the significance of the findings detailed Tuesday could cause them to reevaluate the threats posed to hundreds of thousands of vehicles already on the road. A key finding – the pair needed no physical access to the Jeep to pull off the attack. Valasek and Miller accessed the controls via a security hole in the Sprint cellular connection to Chrysler's UConnect infotainment system. In the course of their research, Valasek sat in his Pittsburgh home and remotely manipulated Miller's Jeep as he drove along a highway outside St. Louis. If you know a car's IP address, they say, a hacker could control it from anywhere. "We didn't add anything, didn't touch it," Valasek told Autoblog. "A customer could drive one of these things off a lot, and they'd have no clue it had these open attack surfaces." Remotely, he disabled brakes, turned the radio volume up, engaged windshield wipers and tampered with the transmission. Further, they could conduct surveillance on the Jeep, measuring its speed and tracking its whereabouts. They conducted the experiments over multiple breaches. They made their findings public on the same day the National Highway Traffic Safety Administration, the federal agency in charge of vehicle safety, released its latest report on the readiness of government and automakers to fend off these sorts of cyber attacks. Later today, two US Senators are expected to introduce legislation that would help consumers better understand the potential risks of car hacking. In the early stages of their research, Valasek and Miller found a security flaw in the car's wi-fi that allowed them to remotely manipulate controls from a range of about three feet. But in recent months, they found another vulnerability in the Sprint cellular connection in the UConnect system. That was a key breakthrough. "Lo and behold, we found we could communicate with this thing using cellular, and then more research, and 'Holy cow,' we're using the Sprint network to communicate with these vehicles," Valasek said.

The problem with how automakers confront hacking threats

More than anyone, Chris Valasek and Charlie Miller are responsible for alerting Americans to the hacking perils awaiting them in their modern-day cars. In 2013, the pair of cyber-security researchers followed in the footsteps of academics at the University of Cal-San Diego and University of Washington, demonstrating it was possible to hack and control cars. Last summer, their research established which vehicles contained inherent security weaknesses. In recent weeks, their latest findings have underscored the far-reaching danger of automotive security breaches. From the comfort of his Pittsburgh home, Valasek exploited a flaw in the cellular connection of a Jeep Cherokee and commandeered control as Miller drove along a St. Louis highway. Remote access. No prior tampering with the vehicle. An industry's nightmare. As a result of their work, FCA US recalled 1.4 million cars, improving safety for millions of motorists. For now, Valasek and Miller are at the forefront of their profession. In a few months, they could be out of jobs. Rather than embrace the skills of software and security experts in confronting the unforeseen downside of connectivity in cars, automakers have been doing their best to stifle independent cyber-security research. Lost in the analysis of the Jeep Cherokee vulnerabilities is the possibility this could be the last study of its kind. In September or October, the U.S. Copyright Office will issue a key ruling that could prevent third-party researchers like Valasek and Miller from accessing the components they need to conduct experiments on vehicles. Researchers have asked for an exemption in the Digital Millennial Copyright Act that would preserve their right to analyze cars, but automakers have opposed that exemption, claiming the software that runs almost every conceivable vehicle function is proprietary. Further, their attorneys have argued the complexity of the software has evolved to a point where safety and security risks arise when third parties start monkeying with the code. Their message on cyber security is, as it has been for years, that they know their products better than anyone else and that it's dangerous for others to meddle with them. But in precise terms, the Jeep Cherokee problems show this is not the case. Valasek and Miller discovered the problem, a security hole in the Sprint cellular connection to the UConnect infotainment system, not industry insiders.