📲 FMCSA Portal Alert | 🛠️ Auto Union Pay Boost

Higher salaries for auto workers won’t affect consumers – even when they hit 25%. Find out how that cost will be absorbed in today’s edition of The Inside Lane.

Inside today's newsletter
🚗 Union Win, Consumer Win: Auto worker raises won't hike car prices.
🔐 FMCSA Portal Alert: Urgent update needed to avoid lockouts.
🚚 EV Transition Challenges: Regulatory uncertainty impacts fleet owners' EV plans.

Here’s why auto worker salary increases won’t affect consumers

All 145,000 United Auto Workers union members earned an immediate 11% raise this week at GM, Ford, and Chrysler – the first step towards a 25% wage increase over the next four and a half years thanks to a historic union victory. But consumers shouldn’t expect to spend more due to those raises.

Labor is a tiny fraction of the overall cost for a car: It accounts for just 7% of production costs. Most of that money goes to raw materials and energy. Prices for goods like semiconductors and metals will impact costs far more.

You might assume that sales costs will still rise a little due to labor costs, but thanks to competition from other automakers, the Big Three will just eat the profit reductions themselves. Ultimately, production costs just don’t drive car prices; supply and demand do.

Finally, there’s the sheer quantity. The Big Three sold around 7 million cars in North America last year, and that economy of scale grants a lot of savings. They’ll have plenty of wiggle room in their profits even after a union-led rightsizing.

Check out the full article – if only for a lively comments section!

Full Story: Jalopnik (11/20)

Are worker pay rises a good thing for the fleet industry?

Friday's results: 57% of Inside Lane readers are using dash cams in their fleets.

🙂 GOOD DAY:

Analysts at DAT Freight and Logistics are predicting a seasonal bump in volumes. Van and reefer freight volumes increased during October, which is a positive near-future sign for fleet operators.

Full Story: Fleet Owner (11/17)

🙁 BAD DAY:

Hyundai and Kia are under investigation by the NHTSA, following 16 separate fire-related recalls affecting 6.4 million vehicles. It follows a recall of 3.4m vehicles in September due to the risk of engine fires, with owners being advised to park away from buildings until repairs were completed.

Full Story: Reuters (11/20)

Carriers must act now to avoid FMCSA portal lockouts

If you’re using the FMCSA’s online portals, then you’ll need to act quickly to avoid being locked out. The Biden administration is making multi-factor authentication for its online services, aimed at improving cybersecurity following recent attacks. Miss the December 1 deadline for updating your login details, and you could have problems accessing important features.

Full Story: Freight Waves (11/20)

How regulations affect the EV transition

Fleet owners rely on stable regulations and long-term planning, but the outlook isn’t as straightforward as it once was. Industry experts are concerned about the US supply chain, overly EV-focused regulations and a lack of alignment between states slowing the transition to cleaner vehicles.

Closing those gaps is urgent, especially with an election looming - a new administration could unpick freshly-laid plans.

Full Story: Fleet Owner (11/20)

NHTSA advisory group on underride protection gets to work

The latest meeting of NHTSA’s advisory committee for underride protection has highlighted stakeholders are still divided about their benefits. Research is assessing the safety benefits of making them mandatory, and a retrofit programme calculated to cost $34.8bn while adding up to 1,000lbs of weight to a trailer.

Full Story: Transport Topic (11/20)

• Safe Driving Incentives: Experts share four effective strategies to encourage safe driving among fleet drivers. (11/17)
• GM's EV Strategy: General Motors absorbs its commercial EV unit BrightDrop; CEO exits. (11/16)
• Texas' AV Future: Texas emerges as a key player in autonomous vehicle testing and regulation. (11/16)
• Houston's Truck Plan: Houston contemplates a citywide truck route plan amid rising freight tonnage. (11/20)

Quote of the Day:

“If you want to live a happy life, tie it to a goal, not to people or things.” - Albert Einstein

I’m so glad you joined us for another information-packed edition of The Inside Lane. I’m always looking for the “next big story” that affects you and your fleet operations – let me know if you see or hear of anything we should be covering in this newsletter.

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