The automotive industry is always changing, and April's automotive industry news showcases the advancements it's making. There are still chip shortages and other issues, but there's also a lot of recovery taking place. Here are some of the most important stories in the auto industry this month.
Video Game Tech is Moving Into the Auto World
Virtual technology is becoming increasingly popular in the manufacturing and design of vehicles. Much of that technology got its start in video games. Infotainment systems were created using a lot of this technology, and it's also used for simulations and meta-factories. Unity Games is at the forefront of this, as the most popular option for video game engines.
While it's typically used to create quality graphics in gaming consoles and online locations, it can also be used for real-time applications in a number of other areas. One of those areas has brought it to the forefront of automotive industry news. Product visualization (such as the testing of automotive film appearances), employee training, maintenance, and other use cases are excellent ways to explore everything video game tech can offer.
EV Mileage Ratings May Change
The EV mileage ratings in the United States may be changing, according to the Department of Energy (DOE). The current proposition by the DOE is to reduce EV mileage ratings to fall in line with fuel economy requirements set by the government. That could force the development and production of more low-emission vehicles, as well as improvements to current model options.
It has been more than 20 years since the current system was updated or revised. While EVs reduce the overall consumption of petroleum to a point, giving too much credit for choosing an EV means conventional vehicles can be created with lower fuel economy. Overall, that will actually increase petroleum production, which has a negative effect on the environment.
Auto Loan Rates Continue to Rise
Among the biggest automotive industry news is the continued rise in loan rates. The Federal Reserve continues to raise interest rates, and that's driving up rates for houses, cars, and credit cards. Buyers are finding that they have to pay more for their vehicles due to the increased rate, and more people now owe more on their vehicles than those cars, trucks, and SUVs are worth.
With the latest hike, rates are close to the all-time high from the last two decades. The original goal of the rate hikes was to slow down the increasing level of inflation. Eight increases have come after that additional increase, and inflation has come down. However, the rate of inflation still isn't where the Fed Chairman would like it to be, so interest rates may not come down for a while.
Commercial Fleets Consider EV Adoption
With so many EVs on the market today, it's not just individuals who are making the move to buy them. Companies are also considering EV adoption for their commercial fleets. Unfortunately, the expenses that come with this change are holding some businesses back. Not only is the cost of the vehicles a consideration, but charging space and cost also matters.
Regulations, emission considerations, corporate sustainability, and other factors are all important to companies looking into buying EVs. There are also tax rebates in many cases, which can make it easier for companies to choose EVs and save money during the process. As charging options become more common and costs come down, more companies will likely choose EVs for their fleets.
Want to keep up with all the exciting changes taking place in the auto industry each month? Stay up to date with LINTEC Automotive.