As this year's Consumer Electronics Show in Las Vegas completed its second full day the debate about the future of motoring raged on, with one notable past enemy of future-facing cars stepping up to the plate.
Michigan governor Rick Snyder, who infamously went toe to toe with Tesla in a bid to stop the Californian company directly selling its cars in his state, was in conversation with a panel of industry experts, including Nissan executive vice president Daniele Schillaci, who The National spoke to ahead of the panel discussion.
Snyder, 59, aligned himself with the views of the older generation – as well as the traditional motoring heartland of Detroit, which has been somewhat slow to catch on to the potential of electric and autonomous cars.
The latter category was the chief focus of the conversation, with Snyder worried about the integration period between now and full “level 5” autonomy, stressing the need to “show the people what value the connected vehicles add” and to “send better safety information to people who don’t have autonomous vehicles”.
But he was cautiously optimistic about the changes, tempered with a note of political manoeuvring concerning future jobs, noting: “Today, how many young people can drive a stick [manual car]? We’ve almost seen this phenomenon before in terms of history.
"Some of these transitions could happen pretty quickly – ride-sharing, delivery, trucking ... but this is really about how do you deal with the society issues. We need to be proactive as a society, to say what happens to the delivery driver."
Dr Melissa Cefkin, principal researcher with Nissan, takes day to day societal concerns to another level. The cultural anthropologist's work focuses on the "social dimensions" of more autonomous vehicles on the road, in terms of how people interact with them and how the subtleties of usual driver behaviours can be applied to driverless cars. "Socially acceptable" autonomous driving, as Cefkin labels it, is going to be a significant transitionary phase between now and all cars being fully self-driving. And the controlling factors can vary from country to country: a Middle Eastern road can be vastly different to, she points out, an suburban American street.
“There will be mixed traffic for a period,” she said. “And in the future there will presumably still be motorcycles and other kind of vehicles that may or may not be autonomous - bicyclists, pedestrians. So there's many interacting parts.”
All of which may lead to new signals and adapting existing indicators on the exterior of vehicles to signal different movements. “As we add more sensors, it may be listening for sounds, like a siren,” she said. “One of the things we have to be careful of is doing things to create over-trust in the technology. It still is two tonnes of steel bearing down the road at you. There will be things that have to mature in its capabilities.”
In the more immediate future, Schillaci calls Nissan's new second-generation Leaf electric vehicle the most ambitious of the company's range, showcasing as it does the pick of their autonomous technology with its e-Pedal and ProPilot features.
Jose Munoz, Nissan's chief performance officer, agrees that the Leaf, which will be introduced to the Middle East this year, will lead their aims.
“I would say EV is going to be one part of the market that is going to be growing, but autonomous vehicles are going to be introduced as the infrastructure allows,” he says. “I believe with the global situation, with the price of oil, EVs are going to have additional interest.”
Despite the combined Africa, Middle East and India region being the only market that Nissan saw its sales shrink last year, the UAE will be a big testing ground ahead of the car maker's official link with Expo 2020.
“We'll have developed more models [by 2020],” Munoz suggested. “This technology is going to be extended throughout the world. Having the Middle East as such an important strategic position for Nissan, you can expect the region to enjoy this new technology.
“Nissan is very ahead of the game and innovative, and we believe in the future of connected, autonomous and electric cars.”
But perhaps the most ubiquitous Nissan on the UAE's roads, the Patrol, doesn't seem set to be part of that revolution.
"Will the Patrol ever be electrified? Not at this moment," Munoz said. "We see the demand coming first in smaller passenger cars, then crossovers. So far we don't see that happening in big SUVs."
When faced with the comments of another big veteran – Snyder – early on in the aforementioned CES debate, one onlooking attendee sighed and walked away muttering "these guys are doomed". Politicians may not be quite up to speed, but the motor car's medium-term future remains up for grabs, and it appears that Japan is set to lead the charge when it comes to established automakers.
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Read more:
End of the internal combustion engine, part 4: an affection for classic cars lives on Britain edges towards full legalisation of self-driving cars
Can electric cars really conquer the Middle East?
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MATCH INFO
Uefa Champions League semi-final, second leg result:
Ajax 2-3 Tottenham
Tottenham advance on away goals rule after tie ends 3-3 on aggregate
Final: June 1, Madrid
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
Test
Director: S Sashikanth
Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
Star rating: 2/5
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
La Mer lowdown
La Mer beach is open from 10am until midnight, daily, and is located in Jumeirah 1, well after Kite Beach. Some restaurants, like Cupagahwa, are open from 8am for breakfast; most others start at noon. At the time of writing, we noticed that signs for Vicolo, an Italian eatery, and Kaftan, a Turkish restaurant, indicated that these two restaurants will be open soon, most likely this month. Parking is available, as well as a Dh100 all-day valet option or a Dh50 valet service if you’re just stopping by for a few hours.
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
ICC Women's T20 World Cup Asia Qualifier 2025, Thailand
UAE fixtures
May 9, v Malaysia
May 10, v Qatar
May 13, v Malaysia
May 15, v Qatar
May 18 and 19, semi-finals
May 20, final
The specs: Macan Turbo
Engine: Dual synchronous electric motors
Power: 639hp
Torque: 1,130Nm
Transmission: Single-speed automatic
Touring range: 591km
Price: From Dh412,500
On sale: Deliveries start in October
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)