Tag Archives: laws

by | Monday, November 14, 2022 · 8:36 am

More Electric Vehicles Make it to Market

There is no doubt that electric vehicles (EV) are seeing an increase in inventory and sales. Globally, electric vehicle sales doubled in 2021 and sales are still strong in 2022. In the second quarter of 2022, EV sales were 5.6% of the total auto market, up 2.7% from the same time a year ago. Consumers are embracing the EV market for its clean energy and solid performing vehicles.

Pricing remains a sticking point with consumers though as many EVs are priced in the range of $50,000 – $100,000 and up. Sure, consumers want to help the environment, but they also face a very real limitation on spending for EVs.

To help position it as a more general option, General Motors plans to release an EV Chevy Equinox in fall 2023 at the lower price point of $30,000. Today, there are few models of any type of EV below $35,000. Complicating the pricing, the costs of battery materials (such as lithium and nickel) have risen significantly. On average, U.S. buyers paid $66,000 for an EV, an increase of 28% from a year ago according to J.D. Power research.

The Inflation Reduction Act is one option to help consumers lower the costs. It offers up to $7,500 in federal EV tax credits, but only for models that meet certain domestic-production requirements. While both new and used cars qualify, there are other restrictions that can limit how much tax credit a consumer receives including income limits and vehicle list prices.

Are you ready to make the leap to an EV vehicle?

Group Activities and Discussion Questions:

  1. Poll students: What is their perception of pricing for EVs in today’s market?
  2. Have students research prices for EV automobiles and SUVs. Build a spreadsheet with information about select vehicles such as Volkswagen, Tesla, Kia, and Toyota.
  3. Have students research the Inflation Reduction Act for federal EV tax credits. What are the caveats?
  4. Show video from WSJ about the EV discounts: https://www.wsj.com/video/series/george-downs/the-climate-bill-unlocks-new-ev-discounts-but-not-everyones-a-winner/26F2FC57-3150-4311-AE3E-705E554AB4D6
  5. Another classroom discussion can focus on how the Inflation Reduction Act fits into an environmental scan for the EV market.

Sources:  Colias, M. (8 September 2022). GM courts mainstream buyers with $30,000 electric Chevy Equinox. Wall Street Journal.; Forbes growth sector: Electric vehicle sales and the new electric economy have arrived (24 September 2022). Forbes.

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by | Wednesday, June 1, 2022 · 7:39 am

Stolen Secrets: Trade Secrets and Corporate Espionage

Many students are surprised to find out that there is significant corporate espionage in America. Corporate espionage (aka corporate spying or industrial espionage) is the use of espionage techniques to steal trade secrets, intellectual property, proprietary information, marketing strategies and the like.

While students may think of corporations as stuffy places only filled with paper and computers, they neglect to consider the enormous costs (including time-to-market) that it takes to arrive at a unique product or service. And how much is customer information and sales worth? Plus, research and technology are serious expenditures and organizations pay hefty fees to protect their institutional knowledge.

One example is a chemist employed at Coca-Cola. She was recently sentenced to 14 years in prison for stealing trade secrets related to a BPA-free coating for the inside of cans and selling them to a Chinese company. Were the secrets a big deal? Yes. The trade secrets in this case collectively cost about $120 million to develop.

Other cases include trade secret thefts worth an estimated $1 billion from a petroleum company, a securities firm robbed of $4.1 million, and lawsuits of trade secret thefts between multiple companies in the technology, beauty, and chemical industries.

Not all corporate espionage is as dramatic or damaging as this example. Many employees or former employees leave companies with proprietary information or customer data. And, as might be expected, Silicon Valley is one of the world’s most targeted areas for espionage. High tech industries in computer software, hardware, automobiles, energy, biotechnology, and more are frequently targeted by thieves.

How much is lost to corporate espionage? Well, estimates vary (and not all thefts are reported) but G4S, a British multinational security services company, estimates it in the trillions of dollars each year.

Watch out!

Group Activities and Discussion Questions:

  1. Discuss the difference between laws and ethics.
  2. Ask students to define corporate espionage.
  3. What examples might students know about?
  4. What can be stolen from corporations that might be valuable? How much is that worth?
  5. Show video about corporate espionage: https://youtu.be/nwvwhM54uus
  6. Divide students into teams. Have each team do an internet search for corporate espionage examples. What happened, when, stolen, results, etc.?
  7. Have each team present their example.

Sources:  Ex-Coca-Cola engineer sentenced in trade secrets case. (10 May 2022). Associated Press.; Bloomberg News; other news sources.

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by | Thursday, April 21, 2022 · 7:35 am

Drone’s Place in the Supply Chain

How long have we been writing about drones? Probably around 10 years or so, and we are still asking “Where are they?” It’s been quite a while and drones from companies such as Google, Amazon, Zipline, UPS, and more have evolved in shape, size, and scope, but they are all still vying for attention and deliveries.

Well, perhaps delivery drones are finally ready to take-off (and land). A number of companies have been testing drones around the nation and the globe, and a handful are ready for commercial operations in the U.S. at last.

Among the contenders are company Zipline, which is now working on deliveries for Walmart and has delivered medical products for years in Ghana and Rwanda ; Flytrex, from Israel, is focused on local food delivery, and Wing (from Alphabet) has increased deliveries of medical supplies due to the pandemic. And of course, there is always Amazon waiting in the wings to launch its drone delivery services to millions of consumers!

Why the interest in drones to deliver products? Speedier deliveries for one, plus lower transportation emissions, less traffic, and that ever-elusive instant gratification! Many companies see it as solving the “last-mile” delivery problem. However, the use of drones still faces in-depth examination and regulation from the FAA. Because drones are an unknown  commodity and can operate autonomously, regulations are needed to prevent accidents or over-crowding in the skies over densely populated areas.

Drones themselves come in different shapes and sizes. Zipline has logged millions of miles of flights for commercial deliveries in Rwanda and Ghana. It is now teaming with Walmart and testing deliveries in Arkansas. Zipline drones are 11-feet wide, fixed-wing drones that launch from a steel rail and land using a hook to grab a wire.

Flytrex from Israel has been making deliveries for Walmart as well. It is also in partnership with Brinker International to deliver food to local restaurants. It’s drones look like the ones hobbyists use and can carry six pounds (or 33 chicken wings).

Amazon has lately been more secretive than when it first announced its intention to use drones a decade ago. However, the company plans to operate 145 drone stations and deliver 500 million packages within a year. It uses a more radical design with hexagonal wings and onboard systems for detecting obstacles. To deliver, it flies a few feet from the ground and drops packages.

Wing has yet another design. It’s drones are made from carbon fiber and injected-foam, weigh only 10 points, and lowers a hook to pick up and deliver packages.

What do you see in the sky?

Group Activities and Discussion Questions:

  1. Poll students about drones. What are the opportunities? The threats?
  2. What are their opinions about deliveries to their homes via drones?
  3. Bring up companies’ websites and show videos from each:
    1. Zipline: https://flyzipline.com/
    1. Amazon: https://www.amazon.com/Amazon-Prime-Air/b?ie=UTF8&node=8037720011
    1. Flytrex: https://www.flytrex.com/
    1. Wing: https://wing.com/
  4. What are advantages and disadvantages of each company?
  5. Divide students into teams. Have each team do an environmental analysis for drones: technology forces, social forces, economic forces, competition, and laws/regulations.
  6. How is each company poised to address the opportunities and threats?

Source:  Mims, C. (2 April 2022). Amazon, Alphabet, and others are quietly rolling out drone delivery across America. Wall Street Journal.

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