Connect with us

Business News

More people are dying on U.S. roads, even as cars get safer. Here’s why it’s a tough problem to solve

Published

on

Cars and trucks are wedged together after a deadly multi-vehicle pileup on the ice covered I-35 in a still image from video in Fort Worth, Texas, February 11, 2021.

NBC5 | via Reuters

New vehicles on sale in the U.S. today are the safest and most advanced ever made, yet roadway fatalities last year reached their highest level in 16 years.

The problem is complex: It’s a combination of reckless or distracted driving, largely due to cellphone usage; increased sales of trucks and SUVs; and higher performance of vehicles, among other factors. Plus, the expected proliferation of electric vehicles, with weighty batteries and record performance may not help the issue going forward.

“We have a conflicting culture in America around cars,” said Michael Brooks, acting executive director of the Center for Auto Safety, a consumer-advocacy nonprofit. “People want these flashy, big ticket items and we want to be able to do what we want in our cars, but at the same time, we’re killing each other at a rate (nearly) higher than ever before, and something needs to be done.”

An estimated 42,915 people died in motor vehicle traffic crashes in 2021, a 10.5% increase from the 38,824 fatalities in 2020 and the highest rate since 2005, according to data from the National Highway Traffic Safety Administration, a division of the Department of Transportation.

Compared to 2019, fatality rates have increased 18% — the highest two-year increase since 1946, when crashes increased 37.6% over 1944 levels, according to NHTSA data analyzed by CNBC.

U.S. Transportation Secretary Pete Buttigieg called the situation “a crisis on America’s roadways that we must address together,” while touting efforts by the Biden administration to reverse the deadly trend.

But turning around the fatality rate on U.S. roadways isn’t an easy problem to fix.

For one thing, safety watchdog NHTSA is infamously slow to adopt new guidelines or laws. And the vehicles consumers are buying now — including increasingly popular electric ones — are faster and heavier than current cars, potentially posing a greater risk to pedestrians and people in older and smaller vehicles.

Weight and performance

Both the weight and horsepower of vehicles are estimated to be at all-time highs, according to the Environmental Protection Agency.

Those record numbers are particularly concerning to safety advocates. “The heavier the vehicle is and the higher the vehicle is, the more likely it’s going to kill a pedestrian and the more likely it’s not going to be compatible with the little sedan and do some serious damage,” Brooks said.

The EPA reports the average horsepower of vehicles has steadily increased for more than a decade and is up nearly 80% compared with 1975. Preliminary data for the 2021 model year reached an average of 246 horsepower, with some newer performance ones topping 700 horsepower or more.

The average weight has risen, too, as sales of trucks have grown in recent years, and reached a record of more than 4,100 pounds in the 2021 model year, according to the EPA.

While large trucks and SUVs can have luxury price tags and high-tech safety features, their added weight may be particularly dangerous to pedestrians. Such vehicles are more lethal to pedestrians than cars and are substantially more likely to hit pedestrians when making turns, according to studies from the Insurance Institute for Highway Safety.

“The higher ride height in general gives you a longer view down the road, but one of the trade-offs, especially in a big vehicle, is the fact that there is a portion of the road immediately in front of your vehicle which is blind to you,” said David Zuby, chief research officer at the Insurance Institute for Highway Safety.

NHTSA estimates more than 7,300 pedestrians were killed by motor vehicles in 2021, a 13% increase compared with the previous year.

“The bigger the vehicle, the heavier they are, the more deadly they are during a crash, especially with vulnerable road users like pedestrians and bicyclists,” said Cathy Chase, president of Advocates for Highway and Auto Safety. “The trend to drive bigger, heavier trucks is to the detriment of everyone outside of the vehicle.”

Electric vehicles pose their own added risk to U.S. roadways. EVs often weigh more than their internal combustion engine counterparts due to the heft of their batteries. Conversely, though, many newer EVs do come equipped with the newest safety technologies.

The performance is also higher in many EVs. For example, the over 9,000-pound Hummer EV, which is more than double the weight of an average vehicle, has a Watts to Freedom, or WTF, mode that launches the truck 0-60 mph in about three seconds. The feature can be used anywhere. That’s an acceleration time previously exclusive to sports cars.

And safety experts are still studying whether EVs catch fire more or less often than traditional vehicles.

Changing behaviors

The research shows that it’s not just the vehicles that are changing.

Americans collectively drove the fewest cumulative miles in 18 years in 2020 when coronavirus lockdowns curtailed travel, according to the Federal Highway Administration.

Many assumed that fewer miles driven would mean fewer accidents. But in fact drivers were more careless and reckless, and fatalities rose, according to officials and federal data.

Likewise for 2021, a higher number of fatalities corresponded with an increase of about 325 billion miles driven, or about 11.2%, compared with 2020, according to preliminary data reported by the FHA.

Despite the additional miles traveled, the fatality rate based on miles driven remained about the same from 2020. Estimates put the fatality rate for 2021 at 1.33 fatalities per 100 million vehicle miles traveled, compared with 1.34 fatalities the previous year.

Experts say to reverse the fatality trend there needs to be a combination of regulatory and behavioral changes.

Simple driver-based changes, like traveling at lower speeds or buckling up, could help. The NHTSA reports fatalities of unrestrained occupants have increased nearly 21% since 2019.

“It looks like the major component of this rising fatalities is very behavioral, but that doesn’t mean we can’t stop it. We just have to be willing to,” Brooks said.

Vehicle-safety advocates also say standardizing new technologies such as automatic emergency braking and blind-spot monitoring can assist in lowering crashes and fatalities. The majority of fatalities involve vehicles that are 10 years or older and aren’t equipped with the newest safety technologies.

“It takes a while for vehicles with new technologies to infiltrate the population,” Chase said. “That’s why it’s so important that there be a requirement that these technologies be included as standard equipment in new cars, and not just options and in higher-end vehicles, as they are now.”

Business News

Walmart strikes exclusive streaming deal to give Paramount+ to Walmart+ subscribers

Published

on

In this photo illustration, a woman’s silhouette holds a smartphone with the Walmart logo displayed on the screen and in the background.

Rafael Henrique | Lightrocket | Getty Images

Walmart has reached a deal to offer Paramount Global‘s streaming service as a perk of its Walmart+ membership program, the companies confirmed on Monday.

Starting in September, customers who belong to the retailer’s program will get free access to an ad-supported plan on Paramount+, which includes movies and shows such as “Star Trek,” “Paw Patrol,” “The Godfather” and “SpongeBob Squarepants.”

Walmart launched Walmart+ nearly two years ago to drive sales and deeper customer engagement. The program costs $98 per year, or $12.95 per month, and is the company’s answer to Amazon Prime, but with a different set of perks. It includes free shipping of online purchases, free grocery deliveries for orders of at least $35 and discounts on prescriptions and gas.

Now it will also include access to the “essential tier” of Paramount+, which typically costs $4.99 per month and includes commercials. Paramount also sells a premium product without ads for $9.99 per month.

“With the addition of Paramount+, we are demonstrating our unique ability to help members save even more and live better by delivering entertainment for less, too,” Chris Cracchiolo, general manager of Walmart+, said in a news release.

Walmart said in a news release on Monday that it has had positive membership growth every month since its launch in September 2020. But since launching the service, the retail giant has declined to share its subscriber total.

According to estimates by market research firm Consumer Intelligence Research Partners, Walmart+ had 11 million customers as of July — the same as in the April. A survey by equity research firm Morgan Stanley pegged the subscriber count higher at about 16 million members as of May.

Paramount+ is one of the many services that compete for eyeballs in the streaming industry. Paramount Global announced earlier this month that Paramount+ has 43.3 million subscribers around the world. The company aims to reach 100 million subscribers by 2024.

The deal with Walmart will give Paramount+ a new distribution channel to add subscribers as well as a branding boost. Paramount+ is the only streaming service that has struck a deal with Walmart and wanted to launch exclusively to get full marketing attention, according to a person familiar with the deal who was not authorized to speak publicly about it.

Jeff Shultz, chief strategy officer and chief business development officer of Paramount Streaming, said the two companies have worked closely together for years by selling consumer products in Walmart’s stores.

The Wall Street Journal first reported the news of the deal.

Walmart will report its second-quarter earnings on Tuesday.

WATCH: Walmart+ members to get access to Paramount+

Continue Reading

Business News

People are spending lots of money on makeup and beauty, and retailers are cashing in

Published

on

Target has added new brands to its beauty department. At a growing number of stores, it also has mini Ulta Beauty shops with prestige brands.

Melissa Repko | CNBC

As prices creep up, some people have decided against getting a new outfit, delayed big purchases like TVs or cancelled Netflix accounts.

But for now, they’re still splurging on beauty.

For retailers, the beauty category has become a rare bright spot as people pull back on spending amid surging inflation. Often seen as an affordable luxury, it is the only discretionary retail category with rising unit sales in the first half of the year, according to The NPD Group, which tracks categories including clothing, tech and toys, as well as beauty products at specialty and department stores.

“You may not be able to go out to eat out as much, but you can buy yourself a lipstick,” said Olivia Tong, an analyst for Raymond James.

This spring, Target called out the strength of its beauty sales, even as it twice cut its profit outlook for the year. Walmart is also investing in the category and rolling out new beauty displays to hundreds of stores, despite its warnings that shoppers are skipping over discretionary categories like apparel.

Other factors work in the industry’s favor, too. Weddings and parties have picked up again. More people are heading back to the office, and can no longer hide behind their Zoom filters. And during the pandemic, some people got in the habit of pampering themselves at home with face masks, hair treatments and other beauty products.

Larissa Jensen, a beauty analyst for NPD, called it the return of thelipstick index” — a term made famous by Leonard Lauder, chairman of the board of Estee Lauder, to explain climbing sales of cosmetics during the recession in the early 2000s.

As consumer sentiment has fallen, lipstick sales volume has climbed, Jensen said. That increase has carried over to other beauty products. Makeup sales, including lipstick, are up 20%, skincare is up 12%, fragrance is up 15% and hair care is up 28% for the first half of the year — and they are all growing in units, as well as dollars, she said.

Much of the beauty category’s growth is coming from households that earn over $100,000 a year, and Jensen said discounters may have a tougher time capitalizing on the trend. Still, beauty’s resilience could provide some cushion for big-box retailers in a slowdown − if they can figure out how to cash in.

Beauty at $3, $5, $9

Walmart and Target both cut their profit forecasts after having to mark down prices on apparel, home goods and other products that aren’t selling. Yet both companies are refreshing their beauty departments and adding new brands to attract customers.

A year ago, Target began opening hundreds of Ulta Beauty shops inside of its stores with brands including MAC Cosmetics and Clinique. The company plans to add more than 250 this year and eventually have the shops at 800 locations, representing about 40% of its U.S. footprint.

And after seeing fragrance become the biggest sales-driver in prestige beauty during the last holiday season, it also added popular fragrance brands to the Ulta shops, including Jimmy Choo Man, Juicy Couture and Kate Spade New York.

Since January, Target has introduced more than 40 brands to its stable of beauty products, including “clean” products that are free of certain ingredients and Black-owned and Black-founded brands.

On an earnings call in mid-May, CEO Brian Cornell said beauty saw double-digit growth in comparable sales in the fiscal first quarter versus the year-ago period. That broke from other categories, besides food and beverage and essentials, which saw a noticeable slowdown.

Walmart has added about a dozen prestige beauty brands to select stores. It struck a deal with British beauty retailer, Space NK, to add the assortment and develop a private label.

Melissa Repko | CNBC

At Walmart, new beauty displays were set up this summer at 250 of the company’s locations, featuring Mario Badescu, Patchology and other brands typically found at specialty beauty shops or department store makeup counters.

A more affordable display called “Beauty Finds” also began rolling to nearly 1,400 stores, offering shoppers lip glosses, lotions and more for $3, $5 or $9.

Walmart has also struck exclusive deals with direct-to-consumer companies like Bubble, a skincare brand with colorful packaging and focus on Gen Z and young millennial customers. For the past few quarters, it has seen double-digit growth in its cosmetics business, said Creighton Kiper, Walmart’s vice president of merchandising for beauty.

“Beauty is this fascinating category where it’s not like food and it’s not like health and wellness, but yet the customer interacts and engages with it every day,” he said in an interview earlier this summer. “You’ve got this mental wellness component to it around confidence and feeling good about yourself.”

When budgets get tighter, Kiper said customers might also fall back on skills they gained during the pandemic — such as doing their nails or hair color at home — and go to Walmart to shop for an at-home twist on the salon.

Ashley Marie Lemons, a stay-at-home mom in suburban Atlanta, said her family is eating out less often because they’re spending more on groceries, diapers and other necessities. She said she cooks more meatless meals and buys hot dogs instead of pricier meats, such as ribs.

But she said she still allows herself to spend about $50 a month on beauty products like eyeshadow pallets and mascaras.

“It’s an outlet for me,” she said. “Some people like art. It’s a creative way for me to express myself.”

Continue Reading

Business News

Salman Rushdie reportedly on a ventilator and unable to speak after he was stabbed

Published

on

Author Salman Rushdie is reportedly on a ventilator and unable to speak after being attacked while on stage in western New York on Friday.

State troopers confirmed in a press conference Friday afternoon that Rushdie was stabbed at least once in the neck and at least once in the abdomen while on stage for a panel in Chautauqua in western New York.

Staff and audience members rushed to the stage and pinned the assailant to the ground following the attack, state troopers said. A state trooper who was present took the suspect into custody with the assistance of a local sheriff’s deputy.

Rushdie was treated by a doctor who was in the audience before emergency medical services arrived and airlifted him to a local trauma center.

After hours of surgery, Rushdie was reportedly on a ventilator and unable to speak on Friday evening.

“The news is not good,” Andrew Wylie, his book agent, wrote in an email reported by Reuters. “Salman will likely lose one eye; the nerves in his arm were severed; and his liver was stabbed and damaged.”

Author Salman Rushdie is tended to after he was attacked during a lecture, Friday, Aug. 12, 2022, at the Chautauqua Institution in Chautauqua, NY.

Joshua Goodman | AP

The state police department identified the suspect as Hadi Matar, age 24, from Fairview, NJ. The New York State Police is collaborating with the FBI and local police for the investigation.

A preliminary review of Matar’s social media accounts by law enforcement showed him to be sympathetic to Shia extremism and the causes of the Islamic Revolutionary Guard Corps, a law enforcement person with direct knowledge of the investigation told NBC News. Law enforcement officers reportedly found images of Solemani and an Iraqi extremist sympathetic to the Iranian regime in a cell phone messaging app belonging to Matar, according to NBC News.

There are no definitive links to the IRGC but the initial assessment indicates he is sympathetic to the Iranian government group, the official said.

The New York State Police released a statement immediately following the incident:

“On August 12, 2022, at about 11 a.m., a male suspect ran up onto the stage and attacked Rushdie and an interviewer,” the statement read. “Rushdie suffered an apparent stab wound to the neck, and was transported by helicopter to an area hospital. His condition is not yet known. The interviewer suffered a minor head injury. A State Trooper assigned to the event immediately took the suspect into custody.”

A spokesperson from the Chautauqua Institution, where the panel was being held, told CNBC that the organization was coordinating with emergency officials on a public response after the attack.

The Wylie Agency, which represents Rushdie, did not immediately respond to a request for comment.

Rushdie’s book “The Satanic Verses” forced him into hiding after it was banned in Iran and a $3 million bounty was put on his head. The Iranian government has distanced itself from the bounty, according to The Associated Press, but the fatwa has been continued by a semiofficial religious organization, which raised the bounty to $3.3 million.

Rushdie has been awarded many of the top literary prizes, including two Whitbread Prizes for best novel. He was knighted in 2007 while Tony Blair was prime minister. Blair released a statement on the attack.

Author Salman Rushdie at the Blue Sofa at the 2017 Frankfurt Book Fair on October 12, 2017 in Frankfurt am Main, Germany.

Hannelore Foerster | Getty Images

“My thoughts are with Salman and all his family,” Blair wrote on Friday. “A horrible and utterly unjustified attack on someone exercising their right to speak, to write and to be true to their convictions in their life and in their art.”

Rushdie was scheduled to sit on a panel alongside Henry Reese, president of City of Asylum in Pittsburgh, an organization that provides sanctuary to writers exiled under threat of persecution.

“We ask for your prayers for Salman Rushdie and Henry Reese, and patience as we fully focus on coordinating with police officials following a tragic incident at the Amphitheater today,” the Chautauqua Institution said in a tweet Friday. “All programs are canceled for the remainder of the day. Please consult the NYS Police statement.”

The institution’s website described the panel as “A discussion of the United States as asylum for writers and other artists in exile and as a home for freedom of creative expression.”

Rushdie was the former president of PEN America, a nonprofit that defends freedom of expression and supports persecuted writers. PEN America CEO Suzanne Nossel released a statement in the wake of the attack.

“Just hours before the attack, on Friday morning, Salman had emailed me to help with placements for Ukrainian writers in need of safe refuge from the grave perils they face,” Nossel wrote. “Salman Rushdie has been targeted for his words for decades but has never flinched nor faltered. He has devoted tireless energy to assisting others who are vulnerable and menaced.”

New York Gov. Kathy Hochul thanked the New York State Police for their response to the attack on Rushdie.

“Our thoughts are with Salman & his loved ones following this horrific event,” wrote the governor. “I have directed State Police to further assist however needed in the investigation.”

Hochul later said Rushdie is alive.

“It was a state police officer that stood up and saved his life,” the governor said during an event about gun violence, adding that the event moderator was also attacked. “We’re monitoring the situation, but he’s getting the care he needs at the local hospital.”

This is the latest in a series of onstage attacks against public figures, including Rep. Lee Zeldin, R-N.Y., in a town near Rochester, New York, earlier this summer, Dave Chappelle at the Hollywood Bowl, and Chris Rock during the Oscars.

NBC News contributed to this report

Correction: Rep. Lee Zeldin, R-N.Y., was attacked in a town near Rochester, New York, earlier this summer. An earlier version misspelled his name and misstated the location.

Continue Reading

Trending