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The USPS needs 180,000 new delivery vehicles, automakers gearing up to bid

Winning the New York City Taxi of Tomorrow tender was a huge prize for Nissan, even though the company is still working through the process of claiming its prize. The United States Postal Service has begun the process to take bids for a new delivery vehicle to replace the all-too-familiar Grumman Long Life Vehicle, and that will be a much larger plum for the automaker who wins it, perhaps worth more than six billion dollars. The Grumman LLV is an aluminum body covering a Chevrolet S-10 pickup chassis and General Motors' Iron Duke four-cylinder engine. The USPS bought them from 1987 to 1994, and the 163,000 of them still in service are a monumental drain on postal resources: they get roughly ten miles to the gallon instead of the quoted 16 mpg, drink up more than $530 million in fuel each year, and their constant repair needs like the balky sliding door and leaky windshields have led the service to increase the annual maintenance budget from $100 million to $500 million. A seat belt is about as modern as it gets for safety technology, and the USPS says that assuming things stay the same, it can't afford to run them beyond 2017. Last year it put out two triage requests for proposals seeking 10,000 new chassis and drivetrains for the Grumman and 10,000 new vehicles. The LLV is also too small for the modern mail system in which package delivery is growing and letter delivery is declining. The service says it doesn't have a fixed idea of the ideal "next-generation delivery vehicles," but it listed a number of requirements in its initial request and is open to any proposal. Carriers have some suggestions, though, saying they want better cupholders, sun visors that they can stuff letters behind, a driver's compartment free of slits that can swallow mail, and a backup camera. The request for information sent to automakers pegs the tender at 180,000 vehicles that would cost between $25,000 and $35,000 apiece, and it will hold a conference on February 18 to answer questions about the contract. GM is the only domestic maker to avow an interest, while Ford and Fiat-Chrysler have remained cagey. Yet with a possible $6.3 billion up for grabs and some new vans for sale that would be advertised on every block in the country, we have a feeling everyone will be listening closely come February 18. We also have a feeling the LeMons series is going to be flooded with Grummans come 2017. News Source: Wall Street Journal, Automotive News - sub.

How privacy fears are driving automakers in the age of the connected car [w/poll]

A recent GAO report concluded car companies don't adequately disclose how and why they share location data. As cars collect and store more and more data about the whereabouts of their drivers, automakers are responding to critics who say they should be more transparent about how those details are used. Ford is hiring a global privacy policy attorney to craft the company's customer privacy policies in the era of connected and autonomous cars. "In this emerging space, there is an important need to address customer privacy policies," reads a job description posted on the "people and careers" portion of the company's website. "As part of our compliance and ethics organization at Ford, this person will have an immediate and direct impact in shaping existing and future policy and corporate thinking in this area." Ford is creating the new position, based at its Dearborn headquarters, at a time technology advances are outpacing privacy protections. Earlier this year, a report from the federal government concluded car companies don't adequately disclose to motorists how and why they share location data. That report, from the Government Accountability Office, found many car companies did not describe how they shared location data, did not allow consumers to request their data be deleted and that there was a "wide variation" in how car companies retained vehicle-specific or identifiable location data. It noted there is increased risk of location data being used in ways "consumers did not intend." Ford was one of 10 companies the GAO surveyed while compiling its report. Customers are opting to share that data largely by using features like maps and turn-by-turn direction that are run by a vehicle's telematics unit. Depending on the company, it can be unclear how that data is collected, retained or shared. At the time the GAO report was issued, AAA, the nation's largest motoring club, urged carmakers to be more transparent in how they handle data and to offer stronger security protections. Shaping Autonomous Car Regulations At Ford, the new hire could change how the company handles that data. According to the job description, the successful applicant will, "demonstrate visionary thinking around privacy strategy – imagine how consumer and employee expectations around privacy may evolve and how business should adapt, develop approaches that maximize the benefit of data sharing for consumers and business, etc." (Emphasis from Ford).

How Ford plans to handle insurance and repair questions surrounding new aluminum-bodied F-150

Building a car out of aluminum has a number of benefits - the lighter weight allows the vehicle to be more agile, more fuel efficient, make better use of its power and be more resistant to dings and dents. The downside to the advanced construction, though, is that repairs are both challenging and expensive. That's troubling for the new, aluminum-bodied Ford F-150, because it's kind of made a name for itself as a rugged, durable work vehicle.
How will the legions of Ford buyers cope when it comes time to insure and repair their new trucks? Well, according to Ford, it's expecting a ten-percent jump in insurance costs for the aluminum-bodied F-150, although Ford's truck marketing manager, Doug Scott, was quick to point out that the F-150 is generally cheaper to insure than its competition from Ram and General Motors. "At the end of the day, that's sort of a wash," Scott told Automotive News at last week's Detroit Auto Show. "We've spent a lot of time and feel very comfortable that that's not going to be an inhibitor."
The other issue facing Ford is the distinct lack of body shops that have the training or equipment to repair aluminum-bodied vehicles. AN cites an estimate from the Automotive Service Association claiming that of the 30,000 independent body shops in the US, less than 10 percent are able to work on aluminum.