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Ford, GM still doing new business with Takata amidst airbag crisis

Lengthy vehicle development times make it difficult for automakers to cut and run from the supplier. You might expect automakers to be fleeing any connection with beleaguered supplier Takata in the wake of the company's exploding airbag inflator crisis. After all, with a Senate hearing, pending lawsuit, plummeting stock value and demand for a national recall, the tier-one supplier isn't at its strongest right now. However, years of cooperation mean that automakers are standing by Takata, and necessity may be playing a role, as well. About 39 percent of Takata's business comes from airbags, and seatbelts make up another significant chunk of the operation too, says Bloomberg. The long-term relationships and lengthy vehicle development times make it difficult for automakers to cut and run from the supplier. "Takata has so much product breadth that I don't really see that they could just disappear," said AutoPacific analyst Dave Sullivan to Bloomberg. For example, Takata helped develop the unique front center airbag with General Motors in models like the Chevrolet Traverse and Buick Enclave. Outside of safety tech, it is also a partner with Ford on the adaptive steering system available on the upcoming 2015 Edge. These long-lasting partnerships make change difficult now that there's a problem. According to Reuters, automakers claim it would take a year or longer to set up with a different supplier for replacement airbag inflators. Switching to a completely different part for the repairs might not be a viable option either, because of the engineering time needed. BMW is taking action, though. According to Reuters, the Bavarian brand is working with the supplier to move inflator production from Monclova, Mexico, to a Takata factory in Freiburg, Germany. The Mexican plant may be the source of some of the faulty parts. News Source: Bloomberg, ReutersImage Credit: Jens Meyer / AP Photo BMW Ford GM Safety Takata airbag recall

Hurricane Sandy cost automakers 15,000 vehicles, may have ruined up to 200k

Hurricane Sandy was the largest Atlantic storm in US history, and its total economic impact is just now coming into view. According to Automotive News, Toyota, Chrysler, Nissan and Honda are set to scrap around 15,000 new vehicles ruined by the storm. Nissan alone accounts for about 40 percent of those, with 6,000 Nissan and Infiniti models deeded "un-saleable" due to damage. The company saw 56 dealerships shuttered due to the storm, but 51 of those have since reopened.
Toyota, meanwhile, had some 4,000 vehicles at its Newark port facility, and of those, 3,000 may be scrapped. An additional 825 were dealer inventory when they were ruined. Honda and Acura dealers are reportedly sending 3,440 vehicles to the salvage yard. By comparison, Chrysler weathered the storm fairly well with 825 units destroyed, while Hyundai suffered only 400 lost units and Kia scrapped around 200.
As you may recall, Fisker also suffered some losses, and Automotive News reports the manufacturer saw 320 Karma models damaged beyond repair. Ford and General Motors have yet to come up with estimates, and no automaker has commented on the full cost of replacing the vehicles.

Automotive Grade Linux will be the backbone of your connected car

Creating a backend for a secure, reliable, and expandable infotainment system is costly and time consuming. The Linux Foundation, a non-profit organization, has set out to promote and advance the Linux operating system in commercial products. Automotive Grade Linux, or AGL, is a group within the Foundation that seeks to apply a Linux backend to a number of automotive applications in a variety of vehicles from various suppliers and manufacturers. AGL's goal is to create a common, unifying framework that allows developers and manufacturers to easily implement applications across platforms. Currently, the focus is on infotainment systems, but AGL has plans for instrument clusters, heads-up displays, and eventually active safety software. At CES, a display from Panasonic showed a completely digital and customizable dashboard that allows information and apps to be moved from the gauge cluster to the infotainment screen and back, all through the use of gesture and touch controls. Although the organization has been around for five years, it's really only been in the past three that the group has been working hand in hand with automakers and suppliers. The first two OEMs to participate, Toyota and Jaguar Land Rover, have since been joined by Mazda, Suzuki, Ford, and, as of this week, Daimler. The latter is important as until now most of AGL's partner's have been based in Japan or the US. Other partners include suppliers Denso, Renesas, Continental, Qualcomm, and Intel. AGL want's to supply roughly 80 percent of the backend, allowing partners to then finish and refine the Linux system for each individual application. Think of how the Android operating system is refined and customized for individual smartphones from Samsung, LG, and Motorola. While the final product looks different, developers can have an application that will work across all AGL systems. Because it is open source, anyone can use and develop for AGL. You can even go onto the group's website and download a copy right now. There is also a software development kit available that helps facilitate app creation on the platform. Vehicle development cycles take roughly five years, so there currently are no cars that run an AGL backbone available for consumers. AGL Executive Director Dan Cauchy says products should be hitting the market later this year, with even more coming in 2018. Right now, the industry is relatively fragmented when it comes to infotainment and related systems.