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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.

EV cost burden pushing automakers to their limits, says Stellantis' CEO Tavares

DETROIT — Stellantis CEO Carlos Tavares said external pressure on automakers to quickly shift to electric vehicles potentially threatens jobs and vehicle quality as producers struggle with EVs' higher costs. Governments and investors want car manufacturers to speed up the transition to electric vehicles, but the costs are "beyond the limits" of what the auto industry can sustain, Tavares said in an interview at the Reuters Next conference released Wednesday. "What has been decided is to impose on the automotive industry electrification that brings 50% additional costs against a conventional vehicle," he said. "There is no way we can transfer 50% of additional costs to the final consumer because most parts of the middle class will not be able to pay." Automakers could charge higher prices and sell fewer cars, or accept lower profit margins, Tavares said. Those paths both lead to cutbacks. Union leaders in Europe and North America have warned tens of thousands of jobs could be lost. Automakers need time for testing and ensuring that new technology will work, Tavares said. Pushing to speed that process up "is just going to be counter productive. It will lead to quality problems. It will lead to all sorts of problems," he said. Tavares said Stellantis is aiming to avoid cuts by boosting productivity at a pace far faster than industry norm. "Over the next five years we have to digest 10% productivity a year ... in an industry which is used to delivering 2 to 3% productivity" improvement, he said. "The future will tell us who is going to be able to digest this, and who will fail," Tavares said. "We are putting the industry on the limits." Electric vehicle costs are expected to fall, and analysts project that battery electric vehicles and combustion vehicles could reach cost parity during the second half of this decade. Like other automakers that earn profits from combustion vehicles, Stellantis is under pressure from both establishment automakers such as GM, Ford, VW and Hyundai, as well as start-ups such as Tesla and Rivian. The latter electric vehicle companies are far smaller in terms of vehicle sales and employment. But investors have given Tesla and Rivian higher market valuations than the owner of the highly profitable Jeep and Ram brands. That investor pressure is compounded by government policies aimed at cutting greenhouse gas emissions. The European Union, California and other jurisdictions have set goals to end sales of combustion vehicles by 2035.

Consumer Reports no longer recommends Honda Civic

Consumer Reports annual Car Reliability Survey is out, and yes, there are some big surprises. First and foremost? The venerable publication no longer recommends the Honda Civic. In fact, aside from the walking-dead CR-Z and limited-release Clarity fuel-cell car, the Civic is the only Honda to miss out on CR's prestigious nod. At the opposite end there's a surprise as well – Toyota and Lexus remain the most reliable brands on the market, but Buick cracked the top three. That's up from seventh last year, and the first time for an American brand to stand on the Consumer Reports podium. Mazda's entire lineup earned Recommended checks as well. Consumer Reports dinged the Civic for its "infuriating" touch-screen radio, lack of driver lumbar adjustability, the limited selection of cars on dealer lots fitted with Honda's popular Sensing system, and the company's decision to offer LaneWatch instead of a full-tilt blind-spot monitoring system. Its score? A lowly 58. The Civic isn't the only surprise drop from CR's Recommended ranks. The Audi A3, Ford F-150, Subaru WRX/STI, and Volkswagen Jetta, GTI, and Passat all lost the Consumer Reports' checkmark. On the flipside, a number of popular vehicles graduated to the Recommended ranks, including the BMW X5, Chevrolet Camaro, Corvette, and Cruze, Hyundai Santa Fe, Porsche Macan, and Tesla Model S. Perhaps the biggest surprise is the hilariously recall-prone Ford Escape getting a Recommended check – considering the popularity of Ford's small crossover, this is likely a coup for the brand, as it puts the Escape on a level playing field with the Recommended Toyota RAV4, Honda CR-V, and Nissan Rogue. While Ford is probably happy to see CR promote the Escape, the list wasn't as kind for every brand. For example, of the entire Fiat Chrysler Automobiles catalog, the ancient Chrysler 300 was the only car to score a check – there wasn't a single Dodge, Fiat, Jeep, Maserati, or Ram on the list. That hurts. FCA isn't alone at the low end, either. GMC, Jaguar Land Rover, Mini, and Mitsubishi don't have a vehicle on CR's list between them, while brands like Mercedes-Benz, Volvo, Nissan, Lincoln, Infiniti, and Cadillac only have a few models each. You can check out Consumer Reports entire reliability roundup, even without a subscription, here.