Auto Industry News: 2020 Auto Sales Review, Big SUV News, CES 2021 Teasers, & Odometer Fraud Data
As we enter 2021 with high hopes and desperate expectations, there is at least some good news to buoy the transition. End-of-year market data shows that while new vehicle sales were dismal, the industry’s decline could have been far worse. Plus, automakers continue to pump out exciting new product, with crossovers, SUVs, and trucks dominating lineups.
In fact, we got a sneak peek at two buzzy three-row SUVs this week – the 2022 Jeep Grand Cherokee and what looks like an off-road variant of the new Ford Explorer. And with CES 2021 around the corner, we expect even more eyebrow-raising models to make their debut… including a possible electric Silverado?
All that and more this week, so buckle up!
2020 Auto Sales Round-Up
Market data indicates new U.S. vehicle sales will finish the year down at least 15% compared with 2019. That translates to a retail SAAR of about 14.5 million new vehicles – a noticeable drop from the 17 million or higher over the past five years. While the decline is representative of the past year’s stay-at-home orders, experts say the resiliency of retail consumers kept the industry afloat.
Indeed, December 2020 posted positive sales numbers. Cox Automotive reports a 1.9% rise in sales volume over the same month in 2019 – translating to about 1.54 million units. Additionally, both J.D. Power and LMC Automotive say dealership profit is up substantially. They predict gross profit per new vehicle (including finance and insurance) to reach $2,053 in December, representing a 66% bump over last year.
The used car market continues to flourish as well, especially as American budgets begin to tighten amid economic uncertainty. The average new vehicle list price rose again this year, with the total eclipsing $40,000 for the first time. By comparison, Cox Automotive places the average used vehicle price around $21,700.
Stay tuned as we have a full end-of-year report coming soon. We’ll also be dropping our 2021 predictions for new vehicle sales and aftermarket trends.
Big SUV News
Speaking of bigger, better, and pricier vehicles, the three-row SUV market is expanding and we have eyes on two new models.
2022 Ford Explorer Timberline/FX4 Spied Testing in Michigan
An off-road version of the new Ford Explorer was seen testing in Michigan last week, looking noticeably production-ready.
Rumors of a rugged Explorer trim have been swirling since the summer, when Ford Authority spotted what it thought to be an FX4-equipped prototype. Thanks to recent spy photos, that image is coming into clearer focus.
Some notable changes are a new upper and lower grille for a refreshing front fascia, punctuated by a set of red tow hooks and skid plate. Around back, a set of tucked-under exhaust tips and upgraded rear-end treatment, including another skid plate, complete the look. The model is also running on blacked-out 18-inch wheels wrapped in aggressive Bridgestone Dueler all-terrain tires. We suspect a suspension lift too, as this variant appears to ride higher than the standard Explorer.
A 4WD logo is clear, though all vehicle badging remains under tape. It’s possible Ford plans to sell this not as an FX4 package, but rather as a new trim. Rumors suggest the name will be “Timberline,” as the automaker filed a trademark for the name back in 2018.
Regardless, it’s clear this new Explorer is designed for a more off-road/overland-enthusiastic crowd than the suburban, streamlined aesthetic of the regular Explorer sku. We expect this model to join the 2022 lineup, though the test prototype looks pretty complete. Stay tuned for more information on pricing, under-the-hood details, and an official moniker.
2022 Jeep Grand Cherokee Three-Row Offers Closer Look
How about a vehicle we can name? Last week also gave eagle-eyed enthusiasts a more detailed look at the new and improved – and more spacious – 2022 Jeep Grand Cherokee.
The Grand Cherokee has long been a popular two-row SUV with diverse performance chops both on- and off-road. Due for a redesign, it appears the model will gain a three-row option for 2022. Autoblog suggests this new variant will not only join the upcoming truck-based Wagoneer and Grand Wagoneer three-rows, but will also replace the Dodge Durango, which is not expected to survive the current model cycle.
While we still can’t see much of the new Grand Cherokee due to heavy camouflage, the model has shed some cladding, indicating an elongated hood and larger rear end. Details are sparse, but we expect to see some cushy and tech-friendly updates to the interior to better compete in the segment.
Additionally, rumors suggest the new Grand Cherokee will receive both the current model’s 3.6L Pentastar V-6 (possibly upgraded) as well as a new turbocharged 3.0L inline six. A plug-in hybrid is expected down the line, as is a possible turbodiesel. Fingers crossed Jeep decides to copy the three-row Durango and stuff the 710-hp Hellcat V-8 under the hood.
The 2022 Jeep Grand Cherokee should launch early in 2021 and arrive in dealerships by the end of the year. Pricing expects to start in the mid-$30,000s.
Toyota Land Cruiser says goodbye to U.S. audiences after 2021 model year
Rumored to be on the brink of an axing, the Toyota Land Cruiser is officially kaput in the U.S. after this model year. The beloved SUV boasts longstanding reputation for seamlessly blending off-road prowess into a refined package.
Toyota acknowledged the Land Cruiser’s legendary run and confirmed its decision to discontinue the model in America. “We remain committed to the large SUV segment and will continue to explore future products that celebrate the Land Cruiser’s rich off-road history,” the automaker assured via press release. “We encourage loyal enthusiasts and intrepid adventurers to stay tuned for future developments.”
This may not be a final goodbye, though. According to Car & Driver, an inside dealer source indicates the beloved SUV will be gone for 2022, but will likely return “more modern and luxurious” in the coming years. If the Land Cruiser will be a high-priced niche vehicle, then so be it. But it needs a full overhaul for buyers to be seriously interested. Needless to say, we here at The Engine Block support taking the necessary time to rebuild.
CES 2021
As SEMA360 showed us, online conventions offer some unique potential for sharing new products, trends, and innovations. Now, the 2021 Consumer Electronics Show (CES) takes a crack at shifting from in-person to all-digital. As one of the largest annual trade shows for new and innovative technology, we have high hopes for an exciting event.
As “mobility solutions” becomes the name of the game, we’ve seen CES go from gadget-convention to reputable auto show. More automakers debut cutting-edge vehicle innovations every year, from self-driving tech and fully electric vehicles, to clean, green accessories of the future. Confirming the auto industry’s growing entanglement with future technology, this year’s show bestows legacy automaker GM with an enormous presence.
GM CEO Mary Barra will kick off CES 2021 with a keynote speech on January 12 at noon EST. In addition to highlighting the automaker’s future plans and products, Barra is expected to spill at least some of the beans about the upcoming electric “Silverado-like” pickup. She will also provide news of some upcoming Cadillac EVs that are set to join the already-revealed Lyriq.
As The Detroit Bureau notes, “While the early peek at the Chevy electric truck is interesting, the more compelling part of the presentation could end up being the Cadillac portion. GM officials have basically suggested the company’s luxury brand could end up being an all-electric portfolio of vehicles.”
As we’ve previously reported, Cadillac dealers are hesitant to make the eyewatering investments necessary for such a shift. So far, about 150 dealerships have opted to exit the brand via buyout, rather than upgrade.
We’ll have more information on CES 2021 as we get closer to the show, as well as a full report afterwards. But expect to see plenty of virtual assistants and 5G-related tech. We also anticipate a big emphasis on “personal wellbeing” from mental health monitors to on-the-go sanitizing and purifying solutions.
Odometer Fraud Increasing in Used-Car Market
Yea, we did a double-take when we read that news, too. As crazy as this might sound, odometer fraud has become such a big issue that CARFAX was forced to issue a general warning to shoppers about it.
While many have written odometer fraud off as a thing of the past in the age of digital odometers, that’s simply not accurate. (Just like these odometers!) In fact, according to CARFAX, more than 1.8 million vehicles on the road today have had their odometers tampered with. That’s an astounding 13% increase from last year.
Some states, like Texas, have seen as much as a 31% spike in fraud. And in Los Angeles alone, there are nearly 200,000 vehicles that have been tampered with.
This is a nationwide issue, one that has captured the attention of the ever-diligent National Highway Traffic Safety Administration. The NHTSA estimates that more than 450,000 vehicles are sold each year with false odometer readings, costing American car buyers more than $1 billion in value annually. As a result, starting January 1, 2021, the NHTSA will require odometer disclosures for every transfer of ownership for the first 20 years, beginning with Model Year 2011 vehicles. Model Year 2010 and older vehicles will continue to be subject to the previous 10-year disclosure requirements and thus are exempt from extended Federal odometer disclosure requirements.
Considering a pre-owned vehicle? Check out this useful resource from the NHTSA on how to protect yourself from odometer fraud. Budgets are tight. The last thing you want is to pay thousands more dollars for a vehicle with thousands more miles than the dashboard says.
In Case You Missed It…
… Robotics company Nuro received the first-ever permit to commercially deploy its self-driving vehicles in California, allowing the Silicon Valley firm to charge clients for its driverless delivery service. This step carves out a path to profitability in the emerging field of self-driving technology. Check out Reuters for the full story.
… The U.S. Federal Aviation Administration announced new rules last week, making commercial drone deliveries a closer reality. Drones represent the fastest-growing segment in the entire transportation sector, with over 1.7 million drone registrations and 203,000 FAA-certificated remote pilots. Fox Business has more on this story.
