The Coming Crisis the Fed Can’t Fix: Credit Exhaustion

Having fixed the liquidity crisis of 2008-09 and kept a perversely unequal “recovery” staggering forward for a decade, central banks now believe there is no crisis they can’t defeat: Liquidity crisis? Flood the global financial system with liquidity. Interest rates above zero? Create trillions out of thin air and use the “free money” to buy bonds. Mortgage and housing markets shaky? Create another trillion and use it buy up mortgages.

And so on. Every economic-financial crisis can be fixed by creating trillions of out thin air, except the one we’re entering–the exhaustion of credit. Central banks, like generals, always prepare to fight the last war and believe their preparation insures their victory.

China’s central bank created over $1 trillion in January alone to flood China’s faltering credit system with new credit-currency. Pouring new trillions into the financial system has always restarted the credit system, triggering renewed borrowing and lending that then powered yet another cycle of heedless consumption and mal-investment–oops, I meant development.

The elixir of new central bank money isn’t working as intended, and this failure is now eroding trust in the central bank’s fixes. Central banks can issue new credit to the private sector and it can can buy bonds, empty flats and mortgages, but no central bank can force over-indebted borrowers to borrow more or force wary lenders to lend to uncreditworthy borrowers.

Let’s be honest: the entire global “recovery” since 2009 has been fueled by soaring debt. The output of more debt is declining, that is, every additional dollar of debt is no longer generating much in the way of positive returns. As with any stimulant, increasing the stimulant leads to diminishing returns.

Then there’s the issue of debt saturation and debt exhaustion: those who are creditworthy no longer want to borrow more and those who are not creditworthy cannot borrow more, unless lenders want to eat the losses of default a few months after they issue the new loan.

The evidence is plain enough: defaults of student loans and auto loans are already at monumental levels, and the recession hasn’t even started. Zero-percent financing for vehicles is a thing of the past, and those borrowers with average credit ratings are paying 6% or more for a new vehicle loan.

Coupled with the ever-higher prices of vehicles, this is leading to auto loans of $600 and $700 a month and lenders extending the duration of the loans from 5 to 7 years. Just how badly do households need a new vehicle at these rates and prices?

As for housing–unless the buyer just sold a house in a bubblicious market and has hundreds of thousands of dollars in cash, housing is out of reach of the bottom 95% in many markets. This raises the other dynamic of credit exhaustion: the whole exercise of buying a home or dumping more money in stocks is ultimately based on greater fools arising who will pay substantially more that the buyer paid today.

Greater fools generally depend on credit to finance their purchase, and so the erosion of creditworthy borrowers means the pool of greater fools willing and able to pay $1.2 million for the old bungalow someone paid $1 million for today is drying up fast.

Only a fool buys an asset that is poised to lose value as the pool of future buyers dries up. No wonder insiders are selling stocks like no tomorrow, and housing markets have become decidedly sluggish: the pool of qualified borrowers who are willing to bet on another decade of central-bank goosed “growth at any cost” is shrinking rapidly.

The next crisis won’t be one of liquidity that central banks can fix by emitting additional trillions; it’s a crisis that’s impervious to central bank manipulation.The credibility of central banks is already evaporating like spilled water in July-baked Death Valley.

Central banks cannot magically make uncreditworthy borrowers creditworthy or magically force those who have forsworn adding more debt to borrow more at high rates of interest, and as a result they are powerless to stop the tide of credit from ebbing.

Thus will end the central banks’ bombastic hubris and the public’s faith in central banks’ godlike powers, the “global growth” story, the China story, and all the other fairy tales that have passed as policies for the past decade rather than what they really were: politically expedient cover for the greatest expansion of inequality in modern history.

 

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Ford CEO Gets Raise After 1000s Of New Job Cuts & “Mediocre By Any Standard” Year

No sooner did news break that Ford will be laying off 5,000 workers in Germany than it was also reported that the company’s CEO, Jim Hackett, saw his pay rise to $17.75 million in 2018, despite what can only be described as a lackluster year for the company. The CEO’s compensation was up about 6% in what he described as a “mediocre by any standard” year for the company.

Hackett’s total compensation was up from about $16.7 million in 2017. He benefited from increases to his salary, stock awards, perks and benefits, while his bonus pay fell, according to a regulatory filing by the company.

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Right now, Hackett is tasked with leading an $11 billion restructuring of the company that involves layoffs, closing plants, updating the company’s lineup and exiting the North American sedan market while, at the same time, investing in electric and autonomous vehicles. The company’s net income was down by more than half last year, as Ford lost money in every other region in the world aside from North America. Over the course of the year, the company’s stock was down 39%, as it fell out of favor with Wall Street.

In January, the CEO sent out an internal memo saying that the company should have earned double what it earned in 2018, additionally telling his employees to “bury the year in a deep grave”. His bonus was cut 28% for the year after missing targets for earnings margins, cash flow and revenue.

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Ford has recovered slightly in 2019, with its stock up about 10% to start the year. The company is also conducting alliance talks with automaker Volkswagen, who it has a joint venture with for producing commercial vehicles. The cooperation could expand to electric vehicles and autonomous vehicles, and Hackett is being praised for spearheading the relationship.

This year’s outlook remains conservative and vague. Ford is going to be re-designing many of its most profitable trucks and SUVs, including the Ranger pickup and Explorer SUV. It also needs to negotiate a new UAW contract for its 56,000 hourly union workers.

In the company’s proxy filing, Hackett’s pay was revealed to be 276 times the $64,000 earned by the company’s median employee. Ford has its annual meeting scheduled for May 9, which will be conducted online for the third year in a row.

Three In Four Americans Remain Afraid Of Autonomous Vehicles: Survey

Although there are no autonomous vehicles for sale to the public at the moment, the American people remain skeptical of these Silicon Valley cars that are currently being tested across the country.

Take, for example, Elaine Herzberg, she was walking her bicycle across a Tempe, Arizona street when an autonomous Uber ran her over. The story was widely publicized, along with other incidents. The latest consumer report shows that recent negative press concerning self-driving vehicles has incited fear among the vast majority of Americans.

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The American Automobile Association’s (AAA) annual automated vehicle survey found that 71% of people are terrified to ride in self-driving vehicles. That’s about a 13% increase in fear levels rom April 2018 after the Tempe fatality. Before the incident, fear of self-driving cars was at 63%.

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The survey revealed that only 19% of respondents said they were comfortable with self-driving cars.

AAA believes there is much work to be done to improve consumers’ perception of self-driving vehicles.

“Automated vehicle technology is evolving on a very public stage and, as a result, it is affecting how consumers feel about it,” said Greg Brannon, AAA’s director of Automotive Engineering and Industry Relations. “Having the opportunity to interact with partially or fully automated vehicle technology will help remove some of the mystery for consumers and open the door for greater acceptance.”

“Despite fears still running high, AAA’s study also shows that Americans are willing to take baby steps toward incorporating this type of technology into their lives,” continued Brannon. “Hands-on exposure in more controlled, low-risk environments coupled with stronger education will play a key role in easing fears about self-driving cars.”

AAA Northern California, Nevada & Utah, in partnership with the city of Las Vegas, Keolis North America and the Regional Transportation Commission of Southern Nevada, tested the first and largest self-driving metro bus for public consumption, all to sway public opinion that self-driving vehicles are safe.

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The self-driving bus was the first in the country to be used in a city environment. The public had a voluntary opportunity to participate in a survey about their post-ride experience. Of those who responded, many described their overall mood improved towards the self-driving vehicles.

More than half of Americans (55%) believe by the end of the next decade, most cars will be outfitted with autonomous features. Those who are skeptical that autonomous vehicles will be driving on roads in the near term, cite reasons such as technology not being fully matured and government regulation.

While experts agree that self-driving vehicles could arrive by the mid-2020s, Silicon Valley and big tech are behind the curve in convincing the American people that this new form of transportation is safe.

Russia shows off upgraded world’s most powerful rocket engine meant for Soyuz-5

Russia shows off upgraded world’s most powerful rocket engine meant for Soyuz-5

Source: RT News

A Russian rocket engine producer has offered a sneak peek of its latest creation, the RD-171MV, which is slated to be part of Russia’s next workhorse launch vehicle and, later, a super heavy-lift rocket.

The RD-170 family is the legacy of the Buran/Energia program, which remains the world’s most-powerful multi-combustion chambered rocket engine. Its producer, NPO Energomash, has adapted it to several launch vehicles over the years, from the two-chamber RD-180 variant for the US Atlas V rocket to the modified RD-171M for the Russian-Ukrainian Zenit-2 launches.

Last month the producer created the first engine meant for the future Soyuz-5 rocket, the RD-171-MV. On Tuesday, Energomash and Roscosmos presented a promo video of the new engine variant, confirming some of its characteristics.

The engine, which has improved overheating protection and a new fully domestically-made fuel and oxygen regulation system, weights 10.3 tons and has a thrust of over 800 kN, slightly more than the RD-171M variant. Its turbines and pumps produce an output of 180 MW, which is comparable to three nuclear-propelled icebreakers.

Soyuz-5, the Russian replacement of the Zenit and Proton medium-lift rockets as well as the future launch vehicle for manned low-earth orbit missions, will have a single RT-171MV powering its first stage. The rocket is expected to make its maiden flight in 2022. A variant of the Soyuz-5 is considered as the vehicle to revive the frozen Sea Launch program, which is currently owned by a private Russian company.

 

Tesla unveils Model Y as electric vehicle race heats up, price starts at $39,000

March 15, 2019

By Alexandria Sage

SAN FRANCISCO (Reuters) – Tesla Inc unveiled its Model Y electric sports utility vehicle on Thursday evening in California, promising a much-awaited crossover that will face competition from European car makers rolling out their own electric rivals.

Chief Executive Elon Musk said the compact SUV, built on the same platform as the Model 3, would first debut in a long-range version with a range of 300 miles (482 km) priced at $47,000.

A standard version, to be available sometime in 2021, would cost $39,000, with a 230-mile range. The vehicles can be configured to include 7 seats for an additional $3,000.

After the event, Tesla’s website included a page to “design and order” the more expensive, long range version of the vehicle with rear-wheel drive, available next year. Ordering the car requires a $2,500 refundable deposit.

Musk unveiled the vehicle at a short 40-minute event at Tesla’s design studio in Hawthorne, outside Los Angeles, that was streamed live online. (https://www.tesla.com/modely).

Each of Tesla’s vehicles, from the Roadster to the latest Semi, were driven onstage before the blue Model Y appeared.

Small SUVs are the fastest-growing segment in the United States and China, the world’s largest auto market, where Tesla is building a factory, making the Model Y well positioned to tap demand.

Tesla has enjoyed little competition thus far for its sedans, but competition for electric SUVs is heating up as Tesla tries to master a new set of economics from the luxury line that made its reputation.

On Thursday, ratings company Fitch warned that, despite Tesla’s early lead, “incumbent carmakers have the ability to catch up … thanks to their capacity to invest and their robust record in product management.”

LOWER COST, LOWER RISK

Tesla’s targeted volume production date of late 2020 for the Model Y would put it behind electric SUV offerings from Volkswagen AG’s Audi, Daimler AG’s Mercedes-Benz and BMW.

“Twelve months from now we will have made about 1 million vehicles,” Musk said at the event, without specifying the breakdown of models.

Shares of Tesla are down 24 percent from an August high of $379.57, when Musk tweeted that he was taking Tesla private.

That plan – later scrapped – ushered in a period of turmoil at the company, from Musk’s public battles with regulators, a flurry of securities lawsuits, cost cutting and layoffs.

Tesla, two weeks ago, said it would close most stores and use savings to cut the price of most cars by 6 percent. But last week, Tesla reversed course and said it would leave many stores open and raised prices back by about 3 percent.

Musk has promised an easier production ramp of the Model Y as it shares about three-quarters of its parts with the Model 3 and would need only half the capital expenditures of the sedan.

The risk is “quite low” Musk told analysts in January. Tesla would “most likely” build the Model Y at Tesla’s battery factory in Nevada, he said at the time. Musk gave no new details about where the Model Y would be produced at Thursday’s event.

Still, the Model Y, like all Tesla models, has already seen pre-production delays. Suppliers were originally told production would start in November 2019, sources told Reuters last year.

In October, Musk said “significant progress” had been made on the Model Y and that he had approved the prototype for production in 2020. In January, he said Tesla had ordered the tooling needed to build the car.

(Reporting by Alexandria Sage; Editing by Peter Henderson, Greg Mitchell and Lisa Shumaker; Editing by Himani Sarkar)

Precision Missiles are the Critical Ammunition in a Big War and the US Does Not Have Enough

The USA does not have enough missiles and antimissiles to beat China over Taiwan and Russia over the Baltics according to RAND thinktank wargames. Precision long-range missiles will be the critical ammunition in any future war with China and Russia. Those missiles can take out air bases, air defenses and aircraft carriers. Anti-missiles and missile defenses are for protecting your air bases and critical air assets. China, Russia and the USA all have precision long-range missiles. China and Russia can cripple US satellites with missile and cyber attacks. Being able to destroy air bases and aircraft carriers means that stealth fighter and stealth bombers can be destroyed on the ground. Having a lot of aircraft carriers, tanks and other expensive military vehicles but not enough missiles is like having a lot of guns but not enough bullets. The US needs to cut back on a few large military systems to get thousands of missiles and anti-missile systems. The US needs to increase spending on missile and anti-missile systems to about 5% of the overall military budget. The US has a military budget of about $700 billion and 15% is for procurement of weapon systems and missiles. The US needs to spend an extra $24 billion on missiles and anti-missile systems. SOURCES- Rand, Breaking Defense Written By Brian Wang

20% Of California Community College Student Are Homeless, Study Finds

Sadly, we can’t say we’re surprised.

Driven by the high costs of higher education and the absurdly high cost of living in California, a recent survey revealed a stunning figure: Nearly 20% of Community College students in America’s most populous state are homeless.

Whether they’re sleeping in their cars, or crashing on couches, or are among the growing number of California’s “unsheltered” homeless, some 19% responded to a survey of community college students saying they either didn’t have a place to live, or were simply crashing or living in their vehicles.

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What’s worse, instead of seeking out shelter in one of California’s many homeless shelters (which we’ve heard are fantastic environments for fostering academic curiosity), many students are simply “too proud” to do this.

Here’s more on that study from 24/7 Wall Street:

Community colleges are two-year education institutions meant to provide affordable degrees for people who have usually graduated high school but have not enrolled in schools which can give them a four-year college degree. They are often known as junior colleges. In one state, nearly 20% of the students enrolled in these schools are homeless.

There are 1,167 community colleges in the U.S. according to the American Association of Community Colleges. The enrollment in these institutions is more than 12.4 million students. Almost half of all undergraduate students in the United States attend community colleges. Homelessness among students at these institutions is prevalent.

In California, the number is extraordinarily large. Nineteen percent of attendees in the largest state by population are homeless. California is among the states with the most unshelterd homeless.  It also has several four-year colleges where applications are on the rise.

A study by the Hope Center for College, Community, and Justice at Temple University’s College of Education in Philadelphia, polled almost 20,000 students at 57 colleges in California. The data was collected during the fall semesters of 2016 and 2018. The report’s lead author Sara Goldrick-Rab told the Mercury News if the information is projected across all of California, it yields the 19% number. She added, “Only 6 percent of students said they were homeless,. The other 13 percent indicated their homelessness by saying where they stayed.”

Community college is inexpensive in most cases compared with four-year institutions. However, that does not mean it is affordable for everyone. According to the Community College Review, among public community colleges, the annual tuition for in-state students is $4,835 per year. For out of state students, the figure rises to $8,594. The data from the study cover 2018 and 2019.

Among the reasons that students do not turn to shelters which are available is that people who consider themselves relatively well educated sometimes have problems admitting to others they are homeless. Goldrick-Rab commented, “And many students don’t go to shelters because these are well-educated people who don’t want to be stigmatized.”

Proposed solutions, at least in California, are for more state support of these students. They also might be supported, financially and in terms of food and housing, by local communities. In the meantime, a number of nearly 20% is high enough that finding a solution for most of these people will take a very long time.

* * *

Of course, maybe if California’s stringent energy-efficiency laws didn’t make building homes in the state roughly 3x more expensive than the national median, there wouldn’t be a housing-shortage crisis, and valuations for existing homes wouldn’t be so high.

US Shifts Weapons from Iraq to Syria

The Pentagon rerouted millions of dollars’ worth of weapons and vehicles from Iraq to Syria in the second half of 2018, Al-Monitor has learned, as US-backed forces cornered the last remnants of the Islamic State (IS).

In a series of …

The post US Shifts Weapons from Iraq to Syria appeared first on Global Research.

China Suspends Sales of Tesla Model 3’s After Customs Officials Find ‘Irregularities’

by Lucas Nolan, Breitbart: The import and sale of Tesla Model 3 vehicles in China has reportedly been suspended after customs officials found “irregularities” with the vehicles. Business Insider reports that China is suspending the import and sale of Tesla Model 3 vehicles due to “various irregularities” in 1,600 imported cars. Chinese news agency Caixin stated that “some of […]

The post China Suspends Sales of Tesla Model 3’s After Customs Officials Find ‘Irregularities’ appeared first on SGT Report.

Nevada Bill Will Allow Police To Search Everyone’s Smartphone

Submitted by MassPrivatel

For years the push to replace physical drivers licenses with digital drivers licenses has relied one one thing; privacy. But all of the “fake news” the public has been fed about their privacy is about to come “crashing” down, literally.

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A Nevada bill if passed would allow police to search everyone’s smartphones.

Nevada bill AB200 allows police to search the phones of everyone involved in a car crash.

“An act relating to motor vehicles; authorizing a peace officer at the scene of a traffic crash to use technology to determine if a driver was using a handheld wireless communications device at the time of the crash; requiring the suspension of the driver’s license of a driver who refuses a request by a peace officer to use such technology; providing penalties;and providing other matters properly.”

Does anyone still believe that once a cop uses a CellBrite to spy on your phone or discovers your smartphone’s unique MAC address that they will not track you in the future? If retail stores can track customers MAC address’s without a warrant don’t you think police will too?

The bill states that motorists give up their rights simply by driving in Nevada.

“Section 1 further provides that any person who operates a vehicle in this State is deemed to have given consent to the use of an investigate technology device on the handheld wireless communications device when requested by a peace officer at the scene of a crash. If a person refuses such a request,the peace officer is required to seize the driver’s license or permit of the person and issue an order suspending the license or permit for 90 days.”

What does this mean? If you are granted the privilege to drive by the government you agree to give up your Fourth Amendment right against being searched without probable cause. Do you still think America is the land of the free?

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Gemalto got one thing right, digital drivers licenses are a “Utopia” for police and governments. According to Merriam Webster, Utopia is “an imaginary place; a place of ideal perfection especially in laws and government.”

If you think U.S. police will respect motorists rights and only search your phone for just your drivers license information you are living in an imaginary place.

Defenders of digital licenses will say Nevada’s police are only trying to determine if a phone was being used prior to the accident and that is it.

“When using an investigative technology device on a handheld wireless communications device pursuant to this section, a peace officer may access and view only evidence of use of the handheld wireless communications device which violates NRS 484B.165 and shall not intentionally access or view any other content on the handheld wireless communications device.”

But I say horse pucky, would you willingly hand your phone to a stranger and let them walk away with it for 5-10 minutes? Would you trust a complete stranger (police officer) not to search your smartphone? Trusting law enforcement with your phone is a horrible idea as an article in the Huffington Post warns.

“By unlocking the license, phone owners could expose their data to whoever is checking it, Chad Marlow, a senior counsel at the American Civil Liberties Union in New York said. And, he added, while an officer normally would need a warrant to search a phone, in the real world, drivers who don’t know the law could be pressured into handing over the phone, allowing access to everything from contacts to text messages.”

House Bill 200 goes on to explain that if you refuse to hand your smartphone to ‘Officer Friendly’ your privilege to drive will be suspended and good luck trying to get a temporary drivers license.

“The scope of the hearing conducted pursuant to subsection 6 must be limited to whether the person refused the request of the peace officer to use an investigative technology device on the handheld wireless communications device in the possession of the person at the time of the crash pursuant to this section. Upon an affirmative finding on this issue, the Department shall affirm the order of suspension.”

If you are given a choice between handing over your phone or losing your license and getting a ticket, what would you do?

That is not much of a choice is it?

Being coerced into giving a government employee your personal information means law enforcement has essentially been turned into the TSA. In the coming years we can expect every state to pass laws allowing police to search motorists smartphones.

Do we really need anymore proof that storing our drivers license and personal life on a smartphone is a terrible idea? 

A chaotic market for one sensor stalls self-driving cars

March 6, 2019

By Paul Lienert and Ben Klayman

(Reuters) – Automakers and technology companies racing to develop self-driving vehicles are running into a problem: cars that can think are no good without affordable and reliable technology that allows cars to see.

With the notable exception of Elon Musk’s Tesla Inc, most automakers have said their self-driving cars will rely on a detection system known as lidar. The state of the art sensors use laser light pulses to render precise images of the environment around the car.

Pressure to launch self-driving cars is already pushing many players to place bets on the technology. General Motors Co, Ford Motor Co and BMW are expected to deploy sensors from well-funded lidar startups Velodyne and Innoviz on their initial self-driving cars over the next two years.

More than $1 billion in corporate and private investment has been plowed into some 50 lidar startups over the past three years, including a record $420 million in 2018, according to a Reuters analysis of publicly available investment data.

For a graphic, click https://tmsnrt.rs/2EAsKuC

Velodyne and Swedish supplier Veoneer Inc will provide lidar for Ford’s first automated vehicle in mid-2021, according to a source familiar with the project. Velodyne President Marta Hall describes the program as “a billion-dollar-plus deal” for the privately held lidar pioneer, whose $75,000 HDL-64E can be seen on the roofs of many self-driving prototypes in Silicon Valley.

But automakers and large suppliers have yet to settle on a winning technology, meaning there are no real sector standards for the sensors to date that would encourage mass production and lower the cost.

The initial payoff for investors and startups looks thin. Automotive lidar is expected to generate only $2.5 billion in revenue by 2025, according to industry researcher IHS Markit.

“You can overcome certain things with additional capital, but you can’t overcome physics” in trying to rapidly develop, package and implement the latest lidar technology, said Austin Russell, chief executive and co-founder of lidar startup Luminar, which has funding from Volvo Cars and development deals with Toyota Motor Corp and Volkswagen AG’s Audi brand.

“That’s the fundamental barrier that’s holding the vast majority of the industry behind.”

Interviews with two dozen executives at startups, automakers, suppliers, investment and research firms underscored that there is plenty of chatter, but little consensus on lidar.

Toyota has partnered with several lidar startups, including Blackmore and Luminar, but the Japanese automaker continues to evaluate new sensing technologies and is not keen for a shakeout to start yet, said Ryan Eustice, senior vice president of automated driving at Toyota Research Institute.

“We want to see an ecosystem happen. There’s a diversity of technology that we’d like to gauge (and) different strengths and weaknesses in how you approach the technology. It’s also good to have competitive market pressure,” Eustice said.

Eventually, the lidar sector could be squeezed down to just five or six key players — as happened with the far more mature radar sensor technology. But that is not likely to unfold until after 2025 and perhaps not until 2030, executives and researchers told Reuters.

“It’s going to be a long runway,” IHS Senior Analyst Jeremy Carlson said.

That presents a big risk: investing in technology that may be obsolete by the time large numbers of those vehicles start rolling off assembly lines after 2025.

If a vehicle assembler gets “too wrapped up in a technology, you might be at a disadvantage” because a newer, less expensive system could come along, said Chris Heiser, CEO of automated vehicle software company Renovo.

Even experts do not seem to agree on the etymology of the name lidar, which is either a mashup of light and radar, according to the Oxford English Dictionary, or an acronym for light detection and ranging (or, in some references, laser detection and ranging).

Nor is there full agreement on whether lidar is really necessary to make self-driving cars work.

Tesla CEO Musk insists the electric carmaker’s so-called “Autopilot” system does not need it, relying instead on a combination of radar, cameras and software.

Lidar remains a relatively young technology that is still in flux, with bulky electromechanical devices such as Velodyne’s popular rooftop unit rapidly transitioning to newer, more compact and more capable solid-state devices designed to sell for less than $10,000 in limited quantities, and eventually as little as $200 in mass production.

“This requires quantum leaps in innovation in lidar technology,” Thomas Sedran, in charge of evaluating Volkswagen’s autonomous strategy in commercial vehicles, told Reuters Tuesday at the Geneva motor show of the need to cut costs.

Aptiv PLC has been among the most active suppliers in developing automated driving systems, investing in three lidar startups: Innoviz, Quanergy and LeddarTech. It is also a key supplier of automotive radar, a sensing technology often paired with lidar.

Glen De Vos, Aptiv’s chief technology officer, said lidar could follow radar’s extended maturation process, with technology, size, cost and reliability optimized over time as demand and production volume ramp up.

“It takes a few generations and iterations for that cost curve to come down,” he said. “It could be a five- to 10-year process.”

(Additional reporting by Joe White in Detroit and Edward Taylor in Geneva; editing by Edward Tobin)

Uber not criminally liable in fatal 2018 Arizona self-driving crash: prosecutors

March 5, 2019

By David Shepardson

(Reuters) – Uber Technologies Inc is not criminally liable in a March 2018 crash in Tempe, Arizona, in which one of the company’s self-driving cars struck and killed a pedestrian, prosecutors said on Tuesday.

The Yavapai County Attorney said in a letter made public that there was “no basis” for criminal liability for Uber, but that the conduct of the back-up driver, Rafael Vasquez, should be referred to the Tempe police for additional investigation.

Police said last year that Vasquez was streaming a television show on a phone until about the time of the crash and called the incident “entirely avoidable.”

An Uber spokeswoman declined to comment on the letter.

Vasquez could face charges of vehicular manslaughter, according to a police report last June. Vasquez has not previously commented and could not immediately be reached on Tuesday.

The Maricopa County Attorney, whose jurisdiction includes Tempe, referred the case last year to another office because of a conflict. In Tuesday’s letter Yavapai County Attorney Sheila Sullivan Polk said its investigation concluded that “the collision video, as it displays, likely does not accurately depict the events that occurred.”

The letter said an “expert analysis” is needed to “closely match what (and when) the person sitting in the driver’s seat of the vehicle would or should have seen that night given the vehicle’s speed, lighting conditions, and other relevant factors.”

The National Transportation Safety Board and National Highway Traffic Safety Administration are still investigating the fatal crash.

The Uber car was in autonomous mode at the time of the crash, but the company, like other self-driving car developers, requires a back-up driver inside to intervene when the autonomous system fails or a tricky driving situation occurs.

The Tempe police report said Vasquez repeatedly looked down and not at the road, glancing up a half second before the car hit Elaine Herzberg, 49, who was crossing the street at night.

Police obtained records from Hulu, an online service for streaming TV shows and movies, which showed Vasquez’s account was playing the TV talent show “The Voice” for about 42 minutes on the night of the crash, ending at 9:59 p.m., which “coincides with the approximate time of the collision,” the report said.

The Maricopa County Attorney’s Office did not immediately comment on Tuesday.

In December, Uber resumed limited self-driving car testing on public roads in Pittsburgh, nine months after it suspended the program following the Arizona crash.

The company is now testing with two employees in the front seat and more strictly monitor safety employees. The company also said last year it made improvements to the vehicles’ self-driving software.

In March 2018, authorities in Arizona suspended Uber’s ability to test its self-driving cars. Uber also voluntarily halted its entire autonomous car testing program.

The NTSB has said Uber had disabled a manufacturer-installed automatic emergency braking system in the 2017 Volvo XC90 while the car was under computer control in order to “reduce the potential for erratic vehicle behavior.”

(Reporting by David Shepardson; Editing by Bill Berkrot and Grant McCool)

China suspends customs clearance for Tesla Model 3 imports: Caixin

March 5, 2019

BEIJING/SHANGHAI (Reuters) – China’s customs authority has suspended customs clearance procedures for Model 3 cars built by Tesla Inc, the financial publication Caixin reported on Tuesday.

The report said the customs authority in Shanghai had found various irregularities in 1,600 imported Model 3 cars, including the improper labeling of the vehicles.

Customs has notified Tesla not to sell or use Model 3 vehicles that have already been cleared, the report said, citing a notice issued by the authority on Mar. 1.

The authority has also urged inspectors at all ports responsible for importing vehicles to step up inspections of other imported Tesla models and suspend their release if similar problems are uncovered, the report added.

The carmaker was not immediately available for comment.

Tesla has been trying to roll out the Model 3 in China ahead of schedule in a bid to revive sales hit by Sino-U.S. trade tensions.

(Reporting by Yilei Sun and David Stanway; Editing by Kevin Liffey and Susan Fenton)

Codelco’s lithium push fades in favor of copper

March 5, 2019

By Dave Sherwood and Fabian Cambero

SANTIAGO (Reuters) – With the global race to secure lithium heating up in 2016, Chile’s president Michelle Bachelet wanted to be sure her country seized the moment. Home to half the world’s lithium reserves, Chile tapping its state-run miner Codelco to ramp up production seemed a sure bet.

Chile’s most trusted public enterprise, she said, could hunt for private partners to help it mine its own lithium for the good of all Chileans, and take part in the global boom for the battery metal used to power electric vehicles.

A review of regulatory filings, court documents and interviews with Codelco officials shows the strategy was deeply troubled from the start. Dwindling support inside Codelco to prioritize lithium projects over copper, company insiders said, was compounded by legal and regulatory hurdles that stalled development of the company’s two flagship salt flats known as Pedernales and Maricunga.

As a result, Codelco has yet to find a partner for either project years into the initiative to boost output of the metal. Global automakers, meanwhile, are planning a $300 billion surge in spending on electric vehicle technology, including the vital battery technology, over the next five to 10 years. https://tmsnrt.rs/2Azl09N

Codelco’s projects, once thought a shoo-in to boost global supply and lower prices, have largely fallen off forecasts, and Chile has ceded its position as the world’s top producer of lithium to Australia.

The stagnation means lithium supply from Chile, the world’s second largest producer of the white metal, will hinge on the water-constrained Atacama salt flat, home to privately held top producers SQM and Albemarle. Authorities are weighing water conservation measures at Atacama that could crimp Lithium output.

As the world’s largest copper miner, Codelco officials told Reuters they felt they had to choose between two metals, and it was an easy decision. Any enthusiasm for former President Bachelet’s lithium drive fizzled once the center-right government of Sebastian Pinera took over from Bachelet last year, according to the Codelco officials, speaking on the condition of anonymity because they are not authorized to publicly discuss the projects.

Pinera’s government focused Codelco on its core Chilean copper assets and imposed an ambitious 10-year, $39 billion program to overhaul its mines, a necessity as ore grades have begun to decline for much of its century-old deposits.

One top Codelco official told Reuters the lithium business was simply “too marginal” compared with copper to warrant substantial investment given tight budget constraints. Chile’s total lithium exports in 2017 were $800 million, less than one-tenth of copper revenues at Codelco, which hit $11.6 billion the same year. The sprawling public miner last year produced nearly one-tenth of the world´s copper, another key metal in the electric vehicle revolution. For a graphic, click https://tmsnrt.rs/2VoSsYG

Another high level Codelco executive said that the company had assigned “zero priority” to its lithium projects, adding it was nonetheless “going through the motions.”

A third Codelco executive told Reuters several miners, which they would not name, had met with the company to discuss a potential partnership in lithium. But they had been turned off by a lack of detailed studies quantifying Codelco’s assets, the person said.

Codelco, in a written response to questions submitted by Reuters, acknowledged it had faced challenges at each site but added that it was nonetheless pushing forward with plans to begin explorations and to find partners at the Maricunga and Pedernales flats.

At Maricunga, Codelco said regulators had granted it a reasonable production quota but said it needed to partner with neighbors at the site in order to make developing its comparatively small piece of the flat worthwhile. At Pedernales, Codelco said the quota it had received was “insufficient to develop a long-term project,” while adding that regulators had left the door open for Codelco to provide evidence for increasing output there.

Codelco’s struggles have thrown cold water on the conventional wisdom that partnering with a Chilean state enterprise is the best way to quickly and efficiently move a project forward in the country´s tightly controlled lithium industry. That has left potential investors with few other options, said Juan Carlos Guajardo, of Santiago consultancy Plusmining.

“There just isn´t much space for newcomers,” Guajardo said. “Codelco could have done something about that…but progress has been slow.”

TWO FLATS, ZERO PROGRESS

Chile´s mining ministry has called Maricunga and Pedernales among the most “economically viable” for development of Chile´s salt flats after Atacama, which currently supplies nearly 40 percent of the world´s lithium. While neither flat boasts the reserves of Atacama, each has relatively high concentrations of lithium beneath their white, salt-encrusted surfaces, according to promotional materials distributed by Chile’s mining ministry.

But the state miner has faced lawsuits from a competing miner at its Maricunga project, delaying progress, and is grappling with regulators who express skepticism about its Pedernales salt flat and the amount of lithium it can yield. As a result, the company has yet to secure a partner to help it develop either asset.

According to filings reviewed by Reuters that have yet to be reported, the company in July 2017 asked nuclear regulator CCHEN, which authorizes sales and export of lithium from Chile, for a permit to mine 137,388 tonnes of lithium metal equivalent (LME) over 36 years.

One year later, CCHEN authorized Codelco to sell just 40,000 tonnes, less than one-third its initial request, saying outdated reserve studies failed to justify the larger sum, according to a CCHEN resolution in response to the request.

Codelco appealed the decision in September, then sent lobbyists to try to change CCHEN´s mind the following month, according to the filings and lobbyist transparency records viewed by Reuters. CCHEN has requested more information of the miner.

“The quota we´ve been given won´t permit us to seek a partner” at Pedernales, Codelco representatives told CCHEN´s director at the October meeting at the regulator´s offices, the minutes show.

Codelco told Reuters it had work to do at Pedernales.

“Pedernales doesn’t have logistical issues. It’s quota…is insufficient and requires further geological exploration in order to modify it. Currently, the focus at Codelco is on the development of Maricunga.”

The copper giant has fared little better there, however. Though the company has secured rare export permits at Maricunga, it owns just 18 percent of mining rights at the 145 sq. km site, according to 2018 mining ministry data, forcing it to seek out its neighbors as partners.

Minera Salar Blanco, a joint venture that also holds mining rights at Maricunga, had once hoped to team with Codelco and begin mining the flats. But the company, 50 percent-owned by Australia’s Lithium Power International, with smaller stakes held by Canada’s Bearing Lithium, instead filed a lawsuit last year to block Codelco from developing its holdings, alleging its permits had been issued in error.

The private miner eventually dropped the suit and has struck off on its own, leaving Codelco with just a sliver of the flat and no partner as of yet to help in its development.

Salar Blanco delivered its environmental impact study to Chilean authorities in September – with no help from Codelco – in order to win approval to develop their property. It now plans to begin construction of its own Maricunga project early in 2020.

Jaime Alee, a Chilean lithium consultant who has advised foreign investors on opportunities in the local market, said outsiders like Salar Blanco were starting to get the message.

“Associating with a state enterprise creates more problems than it solves,” Alee said.

(Editing by Amran Abocar and Edward Tobin)

New Jersey High School Bans Limos, Party Buses, & Luxury Cars From Prom To Promote “Equity”

What better way to put the fun back into prom night than banning limos, party buses or luxury vehicles?

At least, this was the thought process of one New Jersey high school, which has implemented a new policy to ban such vehicles on prom night as way to deal with social inequality. How, exactly, does that work? We have no idea.

According to a report on NJ 101.5, Lakeland Regional High School superintendent Hugh E. Beattie claimed that the new policy is about safety and “equity”. He doesn’t want students who can’t afford a “snazzy ride” to feel left out. Calling it a “group decision made by the Administrative Team”, he says the only way to now arrive at the school’s prom – being held at the Rockleigh Country Club – is to take a chaperoned school bus at a cost of $15 per person.

That should really ramp up the enjoyment factor of the 45 minute ride students will have to endure on prom night, when it comes around on June 4. 

Beattie said:

“The decision was made based on the concern over the safety of all our students and in providing equity for all students so that they all could enjoy a shared ‘prom experience’ despite socio-economic status, and based on the success that other districts have demonstrated utilizing this practice. The district wants to ensure that all students have the equal opportunity to share in a positive, safe and memorable school prom experience.”

The “success of other districts” includes Freehold School District, who has bussed its students to its junior prom for 20 years – because the event usually takes place on a cruise boat. 

In other words, the district wants prom to be memorable, unless your idea of memorable is flexing your newfound independence and driver’s license to roll up to the prom in mom or dad’s BMW. 

And, surprise: the idea was met with “howls of complaints” from students and parents, who claim that renting a limo is part of prom tradition. One student claimed the limo ride was “the best part of the night.” Of course it is; it’s much tougher to hide your booze on a school-chartered bus. 

New Jersey School Boards Association spokeswoman Janey Bramford backed up the school, saying:

 “As a prom is a school-sponsored function, a school district has the authority to make rules concerning the event.”

We hope the kids boycott the event and start their own “function”, where they are free to arrive and depart in any method they choose. 

An ARMS RACE: Deadly AI Tanks, The U.S. Military’s Next Project

The United States military is going to attempt to build deadly artificial intelligence-driven tanks.  Dubbed Project ATLAS, this type of tank would lead to the first autonomous ground combat vehicles.

According to Quartz, the Advanced Targeting and Lethality Automated System (ATLAS) would theoretically give a tank the ability to do everything necessary to take down a target except pull the trigger. A human operator will still need to actually fire the weapon that will kill another human being. The United States Army has already called on experts in the field to help it develop this deadly technology. Eventually, it will allow a ground combat vehicle such a tank to automatically detect, target, and engage enemy combatants – without the risk of the operator losing their life.

The U.S., with support from contractors like Boeing, has continued to develop AI-powered military technology even though some 26 countries have banned autonomous weapons development.  The U.S. Army, on the other hand, has the goal of automating the battlefield in order to make combat and war more efficient. For now, human operators are still required by law to be the ones making the final decision to fire.  “It looks very much as if we are heading into an arms race where the current ban on full lethal autonomy will be dropped as soon as it’s politically convenient to do so,” University of California Berkeley computer scientist Stuart Russell told Quartz.

“Anytime you can shave off even fractions of a second, that’s valuable,” Paul Scharre, program director at a national security think tank called the Center for New American Security, told Quartz according to Futurism. “A lot of engagement decisions in warfare are very compressed in time. If you’re in a tank and you see the enemy’s tank, they probably can also see you. And if you’re in range to hit them, they’re probably in range to hit you.”

The United States Army has also already demoed an F-16 that flies and executes strikes all by itself. Humans have begun the fast process of removing what it means to be a human from society.

Hydrogen Cars Struggle To Compete With Electric Vehicles

Authored by Vanand Meliksetian via Oilprice.com,

The electrification of most industrialized societies has taken off in a big way. In the EU and China government support such as regulations and subsidies are pushing automakers towards alternative technologies which don’t utilize fossil fuels as a source of energy. Also, in North America, despite Trump’s support for the fossil fuel industry, carmakers are embarking on the path of electrification with Elon Musk’s Tesla being one of the frontrunners. Virtually all big auto brands have several EV models planned for the coming years. Hydrogen, however, is not part of the hype.

The smallest and most abundant particle in the Universe has been branded as an alternative environmentally friendly technology compared to EVs. Hydrogen has several pros and cons regarding its application for transportation and energy storage purposes. However, the technology behind fuel cells, the technology used to power hydrogen cars, has failed to convince the wider public and consumers due to a simple reason: high costs.

Hydrogen, or H2 as it’s called in the world of science, can be produced by an environmentally friendly method called ‘hydrolysis’ or through the process of ‘reforming’ natural gas, which is the approach to produce 95 percent of the hydrogen on the market. A reason for hydrolysis’ low applicability is the massive amount of water required for its production. A fuel cell vehicle, FCV, requires 13 gallons of water for each mile. In general, the reforming of natural gas by creating a reaction with carbon dioxide under high-temperature steam is the cheapest and most efficient method

A common mistake about hydrogen is that it’s an energy source instead of an energy carrier. The latter requires an external source of energy to ‘split’ the H2O molecule, or water, into hydrogen and oxygen. Currently, the process is relatively inefficient leading to higher costs compared to alternatives such as EVs.

At the moment, only Toyota, Hyundai and Honda offer an FCV which has a higher price tag than other vehicles of comparable size and capabilities. In the U.S., on average, a fuel cell vehicle costs $60,000 which is more than EV models. The necessity of expensive metals including platinum, titanium and carbon fibers to produce the fuel cell and the hydrogen storage systems means higher prices. Also, the FCV currently offered on the market are not mass-produced. It means that significant cost reductions are possible in time if the necessary resources are invested in further research.

Inefficiency and high costs of hydrogen production are downsides of FCV. Hydrogen costs €10 for each kilogram in the EU and $14 in the U.S. which is sufficient for 100 kilometers or 62 miles. In contrast, EVs are much more efficient with ‘merely’ 31 percent loss of energy. In the case of FCV, the conversion, electrolysis and the converting of hydrogen into electricity requires a significant amount of energy which affects its efficiency.

(Click to enlarge)

Hydrogen-based technology has several methods of conversion and storage which affects the costs and efficiency of FCV.

Hydrogen can power a vehicle using an adjusted internal combustion engine or through a fuel cell. Also, the storage of hydrogen in either liquefied or compressed form affects the fuel’s efficiency (see below).

(Click to enlarge)

Furthermore, FCVs require an additional infrastructure to transport hydrogen to consumers. The system would resemble the traditional oil industry such as pipelines, storages, and refueling stations. EVs, however, require a far lower investment in transportation infrastructure due to the already existing electricity grid. Although the expansion of capacity could be needed, EVs have the added value that they can be used as batteries for smart grid appliances. 

The technology behind EVs is ripe to be used on a massive scale which has led to an impressive increase in sales with practically all significant automakers entering the market. However, the mass production of batteries could be a risk due to resource scarcity. FCVs don’t share the same issues, but instead, other challenges need to be overcome.

In the first place, the costs for producing hydrogen-powered vehicles need to decrease through mass-production and the substitution of expensive metals. Also, improving the efficiency of hydrogen production through environmentally friendly methods would strengthen the position of FCVs as an alternative to fossil fuel-based cars. The growing use of renewables and a promise by Japanese automakers to reduce costs could be the catalysts to propel FCVs as a competitor of EVs.

Nigeria’s Buhari promises security for delayed presidential election

February 22, 2019

By Felix Onuah and Ahmed Kingimi

ABUJA/MAIDUGURI (Reuters) – President Muhammadu Buhari on Friday urged Nigerians “to go out and vote”, promising there would be adequate security for Saturday’s postponed election that pits him in a tight race with businessman Atiku Abubakar.

The Independent National Electoral Commission (INEC) announced a week’s delay to voting in the early hours of last Saturday, just as some of Nigeria’s 72.8 million eligible voters were preparing to go to polling stations.

In a televised morning address on the eve of the vote, Buhari asked Nigerians to “cast aside doubt and have faith that INEC will rise to the occasion” on Saturday.

“Do not be afraid of rumors of violence and unrest. Our security agencies have worked diligently to ensure that adequate security measures are in place,” he said.

Buhari’s rival Atiku, a former vice president who is representing the main opposition People’s Democratic Party (PDP), made a similar appeal to voters through his Twitter feed on Thursday night.

“This Saturday, a vote for PDP is a vote to get Nigeria working again. Come out, vote and #DefendYourVote,” Atiku said in a tweet accompanied by a video of his rallies.

Buhari, a former military ruler who was later elected president in 2015, faces a close contest against Atiku to lead a country that has Africa’s largest economy and is its top oil producer, but is plagued by corruption and insecurity.

The Boko Haram militant insurgent group and its offshoot, Islamic State in West Africa Province, have carried out deadly sporadic raids in the northeast’s Borno state. Boko Haram has warned people not to vote.

Witnesses and security officials told Reuters an attack in Borno on a governor’s convoy on route to an election rally on Feb. 12 was deadlier than the government had said.

More than 1,000 soldiers from neighboring Chad, belonging to a multinational joint force comprised of troops from the region, crossed the border into Nigeria on Friday to help with the fight against Islamists, according to two Chadian military sources.

Police patrol vehicles were seen moving around Borno’s capital, Maiduguri, on Friday. Electoral commission vehicles were also seen ferrying election material under heavy police guard.

“I think everybody has to be concerned about the security … it is something that worries people,” James Jatto, a pastor in Maiduguri said.

Ali Gwarfa, an internally displaced person in Bakassi camp in Maiduguri, said he was preparing to cast his vote in a nearby center despite the insecurity.

“We must go and vote for the candidates of our choice,” Gwarfa said.

Acting Inspector General of Police Mohammed Adamu said police would ensure security at the polls.

In President Buhari’s hometown of Daura in northern Nigeria, an election official, Saeed Ahmed, said electoral materials were being transferred to polling stations.

“I am very optimistic that tomorrow’s election will be credible, free and fair,” he said.

ELECTION DAY

In Lagos, Cheta Nwanze, head of research at SBM Intel, a Lagos based intelligence firm, said the postponement of the election would favor the opposition.

“I think it is important to say that, it cast the APC ruling party in bad light and it builds popular anger towards them,” Nwanze said, referring to Buhari’s All Progressives Congress (APC) party.

However, Bukola Saraki, director general of Atiku’s campaign, told Reuters the delay “disadvantages us”.

Members of Buhari’s APC party and those of Atiku’s PDP have accused each other of being behind the delay and colluding with the electoral commission, but neither party has publicly provided evidence to back up their allegations.

The electoral commission’s chairman Mahmood Yakubu has insisted the vote will go ahead on Saturday. He blamed logistical reasons for the postponement, and said there had been no external pressure.

“Tomorrow is election day,” Yakubu told a briefing.

(Additional reporting by Madjiasra Nako in N’Djamena; writing by James Macharia; editing by Alexis Akwagyiram, Toby Chopra and Chris Reese)

Ford probing possible problems with fuel economy, emissions tests

February 21, 2019

By Joseph White

DETROIT (Reuters) – Ford Motor Co said on Thursday it has hired outside experts to investigate its vehicle fuel economy and testing procedures after employees raised concerns, and did not know whether it would have to correct data provided to regulators or consumers.

The issues involving Ford’s testing processes do not involve the use of so-called defeat devices – hardware and software designed deliberately to deceive government emissions tests, Kimberly Pittel, Ford’s group vice president for sustainability, environment and safety engineering, told Reuters.

The automaker since last fall has been investigating concerns raised by employees that incorrect calculations were used to translate test results into the mileage and emissions data submitted to regulators, Pittel said.

Ford said it was evaluating changes to the process it uses to develop fuel economy and emissions figures, “including engineering, technical and governance components.”

Ford shares dipped slightly in after-hours trading following the disclosure.

Ford has hired the law firm Sidley Austin to lead an independent investigation into possible discrepancies in calculations used to produce emissions and fuel economy figures, Pittel said. The company is using an independent laboratory to conduct testing.

U.S. and California regulators have been cracking down on automakers for emissions cheating following revelations in 2015 that German automaker Volkswagen AG had used defeat devices to make models equipped with diesel engines appear to comply with emissions standards when they emitted far more pollution than allowed in real-world driving.

“We have voluntarily shared this information” with the U.S. Environmental Protection Agency and the California Air Resources Board, Pittel said. Ford notified the agencies this week, she said.

The EPA said in a statement on Thursday that information from Ford’s investigation is “too incomplete for EPA to reach any conclusions. We take the potential issues seriously and are following up with the company to fully understand the circumstances behind this disclosure.”

The investigation has started with testing of the 2019 Ranger pickup truck, and the company expects data back next week, Pittel said.

She said it was not clear what impact the review will have on advertised mileage or fuel economy data submitted to regulators, nor is it clear how many vehicles could be affected if Ford is required to revise the data.

“We cannot predict the outcome, and cannot provide assurance that it will not have a material adverse effect on us,” Ford told investors in a regulatory filing Thursday.

“We are going to go where the investigation takes us,” Pittel said.

Ford has been embarrassed in the past by errors in fuel economy claims. In 2013, the automaker cut by seven miles per gallon the claimed fuel economy for its C-Max hybrid model following complaints that real-world mileage did not match the claimed fuel economy. In 2014, Ford lowered fuel economy ratings for six other models and offered compensation to customers.

(Reporting by Joe White; editing by Jonathan Oatis and Leslie Adler)

Suicide Bombings in India and Iran

On the afternoon of 14th February, 2019 a convoy of vehicles along the Indian Jammu Srinagar National Highway carrying Central Reserve Police Force (CRPF) was targeted by terrorists with a car bomb at Awantipora in Jammu and Kashmir’s Pulwama district.

The post Suicide Bombings in India and Iran appeared first on Global Research.

DARPA Developing Next Generation Materials for Hypersonic Planes and Weapons

There two main challenges for hypersonic weapons and vehicles are for engines and rockets to generate the speed and for materials that can survive at the extreme temperatures. Moving at hypersonic speeds of 5 to 25 or more times the speed of sound in the atmosphere generates extremely high temperatures.

There are some carbon-based composite materials that are currently used. Composites composed principally of C-C with coatings are able to be used higher temperature operation. There are approaches that rely principally on ablation as a thermal management method and techniques for enhancing heat transfer solely through solid conduction. Increasing heat conduction allows materials to get rid of the extra heat.

DARPA’s MACH program is a four year, two-phase effort.

The first goal is to develop fully integrated leading-edge solutions that can be put into near-term hypersonic platforms.

The second goal will explore new materials spaces such as new metal alloys, ceramic compositions, or robust coatings that can withstand 2200 degrees Celsius under oxidative conditions. DARPA will also look at new ways to achieve extreme cooling. They are looking at over 1500 Watts per square centimeter of cooling.

Success with this program could result in improved materials for next-generation SpaceX reusable rockets.

Having materials able to withstand higher temperatures will enable more efficient and aerodynamic vehicles to be created. Current materials are blunt and not aerodynamic. Current materials are able to withstand the high temperatures but get damaged which requires costly maintenance for systems that are used many times.

Popular In the Community

Russia Prepares Nuclear Underwater Drone For New Sea Trials This Summer 

Russia will reportedly start at-sea factory trials of a nuclear-powered unmanned underwater vehicle (UUV), also known as the Poseidon, sometime in the second half of 2019, a defense industry source told TASS.

“The successful tests of Poseidon’s nuclear-powered energy unit opened the way to conducting at-sea factory tests of the vehicle. The tests will begin in favorable weather conditions this summer,” the source said.

On February 2, Russian President Vladimir Putin reported that Russia’s new underwater drone had successfully completed a “key” stage of sea trials.

“A few days ago you informed be about completion of the key stage of trials of the unmanned multipurpose and strategic underwater combat vehicle Poseidon,” Putin was quoted as saying to Defense Minister Sergei Shoigu during a meeting.

Putin first unveiled the drone propelled by a miniaturized nuclear reactor at his state-of-the-nation address to both houses of the Russian parliament in March 2018.

“In his state-of-the-nation address to both houses of Russia’s parliament on March 1, Russian President Putin mentioned for the first time the country’s efforts to develop a nuclear-powered unmanned underwater vehicle that can carry both conventional and nuclear warheads and is capable of destroying enemy infrastructural facilities, aircraft carrier groups and other targets,” TASS said.

In December, we documented how the Russian Navy started underwater trials of the drone, which a source told TASS that, “in the sea area protected from a potential enemy’s reconnaissance means, the underwater trials of the nuclear propulsion unit of the Poseidon drone are underway.”

The Poseidon is a “new intercontinental, nuclear-armed, nuclear-powered, undersea autonomous torpedo,” according to the 2018 US Nuclear Posture Review. The drone is a weapon of last resort. It will also function as a deterrent against Western forces.

Based on a 2015 classified Russian presentation slide, accidentally broadcasted on Russian state-run television station, the drone can travel at speeds of up to 60 to 185 mph, with a range of 6,200 miles and a maximum depth of 3,300 ft. The drone is cloaked by stealth technology to elude acoustic tracking devices. Its size has been estimated at 5 ft. wide and 78 ft. long. It can be fitted with a thermonuclear warhead with a layer of cobalt-59 yielding 100 megatons. However, new reports suggest only a two-megaton warhead.

The Russian Navy is expected to deploy over 30 Poseidon drones, a Russian defense source told TASS last month.

“Two Poseidon-carrying submarines are expected to enter service with the Northern Fleet and the other two will join the Pacific Fleet. Each of the submarines will carry a maximum of eight drones and, therefore, the total number of Poseidons on combat duty may reach 32 vehicles,” the source said.

The Poseidon is listed in Russia’s state armament program for 2018-2027, and the first drone is expected to deploy in the late 2020s. Each drone has the capability of destroying an entire Western naval base, a coastal city, and even a whole aircraft carrier battle group. 

Amazon, GM in talks to invest in electric pickup truck maker Rivian: sources

February 12, 2019

By Harry Brumpton and Stephen Nellis

(Reuters) – Amazon.com Inc and General Motors Co are in talks to invest in Rivian Automotive LLC in a deal that would value the U.S. electric pickup truck manufacturer at between $1 billion and $2 billion, people familiar with the matter said on Tuesday.

The deal would give Amazon and GM minority stakes in Rivian, the sources said. It would be a major boost for the Plymouth, Michigan-based startup, which aspires to be the first carmaker to the U.S. consumer market with an electric pickup.

If the negotiations conclude successfully, a deal could be announced as early as this month, the sources said, asking not to be identified because the matter is confidential. There is always a chance that deal talks fall through, the sources cautioned.

“We admire Rivian’s contribution to a future of zero emissions and an all-electric future,” GM said in an emailed statement, declining to specifically comment on any talks with Rivian.

Rivian declined comment. Amazon did not respond to requests for comment.

The Rivian deal would come as its much larger electric car manufacturing rival, Tesla Inc, struggles to stabilize production and deliver consistent profits as it rolls out its flagship Model 3 sedan.

Tesla CEO Elon Musk told investors last August that an electric pickup is “probably my personal favorite for the next product” from the company, though he has spoken only in general about a potential launch, saying that it would happen “right after” Tesla’s Model Y, which the company has targeted to start production in 2020.

‘SKATEBOARD’ PLATFORM

Rivian intends to begin selling its R1T, the pickup it debuted in November, in the fall of 2020. The company was founded in 2009 by CEO R.J. Scaringe.

Scaringe has described the Rivian vehicle’s platform as a “skateboard” that packages the drive units, battery pack, suspension system, brakes and cooling system all below wheel height to allow for more storage space and greater stability due to a lower center of gravity.

He has also said the company plans to partner with outside firms to develop advanced self-driving technology, rather than try to do so on its own.

Big automakers, including GM, have not jumped into the market for electric pickups thus far. GM CEO Mary Barra has said it has given a “tiny bit” of thought to developing all-electric pickups.

The No. 1 U.S. automaker is counting on profit from sales of conventional large pickup trucks and sport utility vehicles in North America to fund its electrification push. GM said last November it was doubling resources allocated to developing electric and self-driving vehicles, as part of a significant restructuring that included ending production at five North American plants.

GM last month announced a strategy to make its luxury Cadillac its lead electric vehicle brand, revealing it would be the first vehicle built on the Detroit automaker’s “BEV3” platform to challenge Tesla. GM has said one of the first fully electric Cadillac models using the new platform would hit the market around 2022.

Amazon has also invested in self-driving car startup Aurora Innovation Inc, in a $530 million funding round announced last week. The world’s largest online retailer has steadily increased its logistics footprint, building warehouses around the world and inking deals with Mercedes as well as cargo airlines to help with delivery.

Rivian’s existing financial backers include Saudi auto distributor Abdul Latif Jameel Co (ALJ), Sumitomo Corp of Americas and Standard Chartered Bank. ALJ has agreed to provide almost $500 million in funding, Sumitomo invested an undisclosed amount, and Standard Chartered provided debt financing of $200 million.

(Reporting by Harry Brumpton in New York and Stephen Nellis in San Francisco; Additional reporting by Ben Klayman in Detroit and Jeffrey Dastin in San Francisco; editing by Bill Rigby)

Give us our 284 APEC summit cars back, Papua New Guinea police plead

February 12, 2019

SYDNEY (Reuters) – Papua New Guinea police are seeking the return of nearly 300 imported cars loaned to officials for driving world leaders around its capital during last year’s Asia-Pacific Economic Corporation meeting, a commander said on Tuesday.

The purchase of the fleet, including 40 slick Maserati Quattroporte sedans, sparked public protest in a country beset by poverty, and potholes, and the government had promised to auction the cars after the November summit.

“There are 284 vehicles … that were issued to personnel to use during APEC that haven’t been returned as yet,” said Superintendent Dennis Corcoran, who heads the State Asset Recovery Unit.

The vehicles include Landcruisers, Fords, Mazdas and Pajeros, he said, but not the luxury marques, which have been tracked down and recovered.

“All 40 of the Maseratis and the three Bentleys are in top condition and locked away in the old wharf shed down on the main wharf,” Corcoran said in a telephone call from Port Moresby.

He said police knew that nine cars were stolen, parts had gone missing and some of the returned cars were “pretty seriously damaged”.

The South Pacific archipelago of 7.3 million people pulled out all the stops at the APEC summit, hoping to put itself on the world map and lure investment. Aid money poured in from China and Australia to prepare for the event.

But it was the images of the Maseratis being unloaded at the airport, even as the government grappled with a polio outbreak, that proved a lightning rod for public anger.

Government spokesman Chris Hawkins said a global event had to be hosted properly, and added that many of the vehicles not yet returned were either in government lots or being used by paramedics, firefighters and other public servants.

Police believe six of the nine stolen cars are still around Port Moresby, while three have found their way to Mount Hagen, in the country’s rugged highlands. Corcoran was confident of finding them because he has a master list of who signed them out.

“Basically, I know where all 284 vehicles that I’ve got to collect are,” he said.

(Reporting by Tom Westbrook; Editing by Clarence Fernandez)

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