Tuesday, November 6, 2018

Honda to invest $2.75 billion in Cruise the GM autonomous vehicle subsidiary

Honda has hardly any electric cars in its lineup — yet it is going to invest $2.75 billion in Cruise, the autonomous driving company bought by giant GM.

Investment spread over 12 years


There will be only $750 million in investment that will take place right now. The rest will be spread out over the following 12 years. Cruise has attracted other investment as just five months ago Softbank invested $2.25 billion in the project. Cruise is now valued at more than $14 billion.
What will the new vehicle be like?

Founder and chief executive officer (CEO) of Cruise, Kyle Vogt said that it would be innovative, space efficient and multi-purpose. He noted that when there is a chance to design a vehicle from scratch, one is not limited to a design that looks like an existing autonomous vehicle, but can work from first principles. He said that everything was in place to move reasonably quickly on the project.
The president of GM, Dan Amman, would not say what the new car would look like, claiming that it would be the next evolution in the future of transportation, and that it would be manufactured in high volumes for global deployment. Amman said: "This is a purpose-built vehicle that will be the first vehicle produced at scale that is freed from the constraints of vehicle design and having a driver at the wheel".
Mary Barra, CEO of GM commented on the close relationship between the two automotive companies that brought about the new project: “This is the logical next step in General Motors and Honda’s relationship, given our joint work on electric vehicles, and our close integration with Cruise. Together, we can provide Cruise with the world’s best design, engineering and manufacturing expertise, and global reach to establish them as the leader in autonomous vehicle technology — while they move to deploy self-driving vehicles at scale.”
A recent CNN article indicates the novelty of such a partnership: "With Honda's engineering and financial assistance, Cruise will begin developing a new vehicle that is not based on any existing car, the companies said. It will represent the next step in autonomous driving, one in which controls for human operation are entirely absent."
Honda, GM, and Cruise hope to expand Cruise network globally
Cruise claims it will begin to offer a commercial ride-hailing service using autonomous Chevy Bolts next year. The service is expected to be in San Francisco where Cruise has its headquarters. Cruise is already testing autonomous cars in the Bay Area.
Both companies have had decades of experienced building cars and this should stand them in good stead for the future in competition with Tesla. As the leader in the field, Tesla is setting sales records in spite of troubles with its founder Elon Musk. Tesla claims it has already equipped every car it makes with the hardware needed for fully autonomous operation. The company's Model 3 car is already increasing production in order to serve a mass market.

Previously published in Digital Journal

Sunday, November 4, 2018

A strong demand for low potency pot expected as Canada legalized recreational marijuana

On October 17 legal recreational marijuana will go on sale in Canada. Some industry insiders claim this will create a strong demand for less potent products as new customers enter the market.
New consumers may want to try low potency products
Many new customers may be interested in dabbling and trying out marijuana rather than getting high as they would from more potent types of marijuana. They may want marijuana that contains less psychoactive ingredients but still will provide relaxation and reduce stress.
A report by Deloitte predicts the legalization of the drug will bring more risk averse consumers into the market who are older and are not likely to consume the drug as regularly as those already using the drug for recreation. The report says: "Today's consumer is what we describe as a risk taker. They're young, typically with a high school or college education. In their quest to live life to the fullest, they're more likely to put their health or safety at risk, even going so far as to skirt or break the law."
The report describes the new recreational users as typically 35 to 54 years old and fully three quarters of them will have had some recreational marijuana but only 41 percent will have used it in the last five years. The report continues: "This consumer is more of a conservative experimenter -- typically middle-aged, with a university or graduate school education. They don't tend to put their personal interests before family needs or other responsibilities." The report claims that almost half of those currently using pot say they would move to the legal market if there were more choices in terms of product potency.
Marijuana producers are paying attention to the new consumers
Andrew Pollock, of the Green Organic Dutchman said that many customers are requesting products with higher concentrations of CBD a non-psychotic cannabidiol, as contrasted with THC or tetrahydrocannabinol which is the main mind-altering ingredient in the marijuana plant. Pollock said that there is a trend towards CBD.
CBD and THC
CBD and THC are some of the most common compounds found in marijuana. Plants with a higher amount of CBD produce marijuana that gives relief of anxiety, pain, and inflammation while leaving one clear-headed. In contrast THC provides a high as well while relieving symptoms such as pain and nausea according to Pollock.
Pollock said: "What we're finding is more and more consumers are just looking for something to help them relax, to take away the stress, maybe to help them sleep. What most consumers are looking for in this day and age is calm." Pollock's firm the Green Organic Dutchman is building 130,000 square metres of cultivation facilities in Ontario, Quebec and Jamaica.
Ali Wasuk, the store manager of a dispensary in Vancouver said that CBD products were already popular among medical clients. Especially older users who had never used recreational marijuana used the CBD products because they worried about getting high. Wasuk said those who use the CBD products mainly wanted to dabble and get their feet wet with the lower dose. He said that on the medical side of marijuana use it was generally of products with lower quantities of THC.
Lower dose products becoming common in the US
It used to be that the US marijuana market was dominated by high dosage THC pot on the black market. Pot that created a high and packed a wallop. However, things are now changing. This may be partly because there are sometimes adverse reaction to the high TCH marijuana. Maureen Dowd a New York Time columnist wrote of her experience after taking a sample of a cannabis-infused chocolate at a legal Colorado pot shop in 2014. She claims to have ened up "curled in a hallucinatory state" for eight hours in her hotel room.
The industry is now trying to urge lower-dose products be used by new users and is also emphasizing responsible consumption of products, particularly of edibles.
Tom Adams, managing director of BDS Analytics in Colorado said: "The industry has very much harped on the theme of, 'Start low, go slow." Adams also notes that there are also regular users in the market who want to take some edge off without getting high.
As the appended video shows, users should be aware that marijuana use and possession is still against US federal laws. Users must be careful when they enter the US or they could end up being banned from entry.
Who can buy marijuana and what will be available?
As with alcohol the minimum age for possession or purchase is set at 19. However, unlike liquor stores those under the age of 10 will not even be able to enter stores even if accompanied by an adult.
At present, only dried cannabis, seeds, and oils will be legally available as well as accessories such as rolling papers, pipes and bongs. Edibles such as pot-infused cookies or brownies will still be illegal. They are expected to be available within a year.
Cannabis concentrate and vape juice will also still be illegal. Health Canada claims that it needs more evidence of the risks involved in each.

Previously published in Digital Journal

US will bank Tik Tok unless it sells off its US operations

  US Treasury Secretary Steven Mnuchin said during a CNBC interview that the Trump administration has decided that the Chinese internet app ...