00:00There's a collective scramble across the auto industry right now to comply with these federal regulations.
00:05And one of the toughest parts of the industry in terms of compliance is these little modules that go into
00:11vehicles and allow them to connect to the outside world.
00:14Sort of like if you think about with your phone and Wi-Fi, it's the same with a car.
00:19We went to see Eagle Wireless in Ohio that is doing a massive ramp up to meet the demand that
00:26is seen from this connected vehicle rule.
00:28And all the automakers that need a U.S. supplier of these modules.
00:42Eagle says their module is about 5 to 15 percent more expensive than China.
00:47But think about that multiplied across all the components of the car that need to be migrated to the U
00:53.S., or at least to a compliant supplier.
00:55So that does add significantly to the car's cost.
00:58And the automakers and suppliers are not going to want to place that burden totally on the customer.
01:03They're going to want to absorb it as much as possible.
01:06And mind you, also, the U.S. government is not going to want that on their conscience as well if
01:11they drive the cost of cars up significantly through these regulations.
01:14So that's one of the biggest tension points we're seeing around this connected vehicle rule.
01:19I don't know if that's possible.
01:19I don't know.
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