Auto Industry News: Carlos Ghosn Makes Wild Escape, California AB5 Faces Pushback, NHTSA Finally Issues Draft Replica Car Rule, Dakar Rally Cracks Down on Cheating, and CES 2020 Expectations

Wow, it’s been a weird couple weeks for the world, let alone the automotive industry. Most bizarre, however, is the Ocean’s 11 getaway Carlos Ghosn made from Japan, to escape what he calls a “rigged” justice system. California lawmakers receive criticism from freelancer groups scrambling to get temporary injunctions against a new law classifying them as employees. And the NHTSA finally gets its butt in gear, drafting safety rules for a replica car law passed five years ago.

We also have an update on the Nexen Tire Hero Wrangler from SEMA 2019, new anti-cheating measures for participants of the Dakar Rally, WoO results, and some expectations for CES 2020.

From CEO to Fugitive; Carlos Ghosn Flees to Lebanon

Disgraced former Nissan boss Carlos Ghosn fled prosecution in Japan last week, after making a daring, action-movie-style escape from his court-imposed house arrest to freedom in Lebanon.

According to reports, a private security company disguised as a band snuck him from the Tokyo residence, onto a bullet train, and eventually onto a private jet—the last of which was achieved by hiding him in a musical instrument case that was too big for the luggage scanners at Osaka’s Kansai International Airport.

Once in Lebanon—one of the three nations where he maintains citizenship—Ghosn was quick to speak publicly on the matter, something he claims Japanese authorities barred him from doing.

“I am now in Lebanon and will no longer be held hostage by a rigged Japanese justice system where guilt is presumed, discrimination is rampant, and basic human rights are denied,” Ghosn, 65, said in a brief statement released on Tuesday. “I have not fled justice, I have escaped injustice and political persecution. I can now finally communicate freely with the media, and look forward to, starting next week.”

What’s Next for Ghosn?

Lebanon has denied they had any official hand in the daring escape, but Ghosn was reportedly “greeted warmly” by President Michel Aoun. The nation seemingly has no plans to send him back to Japan for trial, as the two countries do not hold an extradition treaty.

Meanwhile, Turkish police said seven people have been detained in the investigation into Ghosn’s escape, four of whom are pilots. Additionally, Interpol has issued a red notice for the disgraced auto industry chief exec, the European equivalent of putting him on the FBI’s most-wanted list.

According to Ghosn’s lawyer, the CEO-turned-fugitive is set to speak on Wednesday, January 8 at a press conference in Beirut.

Maybe he’ll show up in a tuba case. Who knows? Wouldn’t rule it out at this point.

California’s Gig Worker Law Faces Pushback

California’s AB5, a sweeping bill meant to protect freelancer and contract workers across the state, has been causing some major waves out West.

Gig economy companies like Uber, Lyft, and Postmates have all gone to court over the passage of the bill, calling it unconstitutional. They poured hundreds of millions of dollars into lobbying against it, hoping to sway the public via a ballot measure come November 2020 that would create a new classification specifically for ride-share drivers.

But while the billion-dollar ride-sharing and food delivery companies might be stealing all the headlines, other industries, like trucking, have been hard at work trying to navigate the new law as well. Just last week, a federal judge placed a short block on AB5, giving 70,000 independent truckers a “temporary restraining order” beyond the January 1 implementation date.

However, a different judge in a different federal court denied the temporary restraining order sought by California freelance journalists. Under AB5, writers who submit over 35 articles a year to any given outlet would be required by law to become reclassified as an employee. The stipulation has already spurred Vox Media to drop over 200 freelancer contracts with writers and editors living in the Golden State.

We expect these legal challenges to be just the first of many, with other industries’ contract workers looking for legal exemptions from AB5’s side effects. But legal challenges are long, drawn-out and expensive things.

Perhaps that’s part of the reason for Travis Kalanick’s recent exit? The co-founder and former CEO of Uber who was forced to resign after allegations of unethical work culture and ignoring sexual harassment complaints, just sold off his last remains shares in the company and left its board. Maybe he sees the ultra-expensive writing on the wall here?

NHTSA Finally Issues Draft Replica Car Rule

Remember 2015? A simpler time when the news wasn’t as insane, Australia wasn’t on fire, and the FAST Act was passed? Yeah, me either.

So, let me jog your memory a bit. The Fixing America’s Surface Transportation Act was legislation intended to fund and authorize federal surface transportation spending. But also written into it were provisions to help small manufacturers produce replica cars (up to 325 each year) with less regulatory red tape. The FAST Act gave the NHTSA until December 2016 to figure out any necessary legal adjustments for implementation.

And, well, uh, the NHTSA just didn’t do anything. So, SEMA sued them.

Now, five years later, those new regulations are finally set to be drawn up. NHTSA announced this week they would be providing the public 30 days to comment on their newly proposed rules, a process SEMA is excited to participate in once again.

“SEMA welcomes NHTSA’s proposed regulations and urges the agency to quickly finalize the rules,” said SEMA President and CEO Christopher J. Kersting. “The replica car law was enacted to much fanfare in 2015, with customers eager to buy classic cars celebrating America’s automotive heritage. Years later, companies are now poised to hire workers, gear-up for production, and provide consumers the chance to buy turnkey replica cars.”

Nexen Hero Jeep Wrangler Awarded to Veteran

Remember this excellently-styled JL Wrangler build posted up in the Nexen booth at SEMA 2019?

Well, in addition to impressing Jeep lovers everywhere with its off-road makeover (compliments of Rugged Ridge) the vehicle also marked the third campaign by Nexen to bring national awareness to the brave men and women of the United States Armed Services.

Nexen organized a giveaway before Christmas, gifting the rig to a well-deserving veteran, as well as matching up to $30,000 in donations made to The Purple Heart Foundation through the manufacturer’s website. This year’s recipient was retired Army Sgt. 1st Class Ken Cates, whose 26 years of service in the Army Reserves and Coast Guard was honored with the tricked-out 2019 Jeep Wrangler Unlimited Rubicon.

“It’s an honor to be selected as the recipient of the Nexen Hero Jeep Wrangler. I’ve dedicated much of my life to military service, and what Nexen Tire is doing with this vehicle and its campaign is incredibly humbling. It’s an honor for any veteran,” said retired Sgt. 1st Class Ken Cates

Having been awarded the Bronze Star Medal, Army Commendation Medals, Army Achievement Medals and Humanitarian Service medals, along with his work as CEO of the Fort Hood area Habitat for Humanity, Cates is well-deserving of his brand-new ride.

Around the Circuit

2020 Dakar Rally Cracks Down on Navigation Cheating

New Dakar Rally director David Castera has hit the ground running when it comes to rooting out cheating and corruption, taking measures to try and eliminate illegal navigation aids and practices ahead of the 2020 edition.

According to Motorsports.com, the top 25 cars will have two cameras equipped on the interior to prevent any use of electronic devices for navigation like radio transmitters and receivers, satellite links and data transmitters, as well as GPS units. The new rules also require leading crews to “hand in their mobile phones” at the start of the race, only to be unsealed at the end.

“We have worked much more at controlling all the information that we give from Dakar about the route,” Castera explained to Motorsport.com. “We want to make the race more balanced so that everyone gets an equal chance.”

The 2020 Dakar Rally hits the grueling desert sands of Saudi Arabia January 5-12, during which time drivers will be pushed to the limit as they face 7,500 km (4660 miles) of unforgiving terrain.

WoO Battle at the Border

Cade Dillard stole the headlines from defending World of Outlaws Late Models Series champ Brandon Sheppard after a late restart on lap 67, holding on for the final nine laps to lock in his first career WoO win.

Despite Sheppard leading the first 66 of the 75-lap Battle of the Border race, Dillard overcame the odds to earn a $15,000 paycheck and the win this weekend. “I’m speechless,” Dillard said in a DirtVision.com broadcast. “Just to be out here with these guys and general is a blessing to me. Everything fell our way.”

Dillard will look to keep his momentum going in the DirtCar Nationals at Volusia Speedway Park in Barberville, Florida on February 7.

CES Expectations

While the show floor won’t officially open until tomorrow, press day has begun for the 2020 Consumer Electronics Show and already reports are filing in about larger-than-life televisions, Alexa-capable showerheads, “smart” trashcans that tie up their own garbage, and these creepy (but also kind of adorable) robot kittens.

More interesting however, are the next-gen vehicles and automotive technologies set to take the stage—like Jeep’s three new plug-in hybrid models, a tri-camera rearview mirror developed by Aston Martin and Gentex, and Bosch’s new lidar sensor, which the German company says should speed the development of autonomous cars.

The show runs January 7-10 at the Las Vegas Convention Center. So, stay tuned, as we’ll be posting a recap afterwards with our terrified rantings about the future informed takeaways.