Auto Industry News: Electric ‘Stangs Take the Lead, Tesla Ditches Radar, WARN Makes Big Acquisition, and F1 Eyes Up TWO Grand Prix in the U.S.
Still riding high on the Lightning F-150’s debut success, Ford announced a significant milestone last week: More battery-powered Mustangs rolled off assembly lines so far this year than their gas-fueled counterparts. Meanwhile, over at Tesla, Elon Musk made the puzzling decision to drop radar sensors in Model 3 and Model Y vehicles. While satisfying his technological vision, the move also revokes certain national safety designations.
On the aftermarket side of the biz, two big acquisitions made headlines this week. Both indicate the off-road and overlanding markets are still red hot. But before we dig into industry and market happenings, a recent racing schedule shake-up could spell exciting opportunity for American Formula 1 fans.
TWO U.S. Grand Prix?!
The Singapore Grand Prix fell victim to the dreaded COVID-cancelation last week, creating a vacancy on the international racing schedule. Now, rumor has it, Formula 1 organizers are on the hunt for alternative locations – creating the potential for two U.S. Grand Prix.
As it turns out, F1 races aren’t all about wacky cars, confusing rules, and Lewis Hamilton top 3 finishes – the venue plays an extremely important role. In fact, only venues with certain licenses even host an F1 race in the first place. And the only venue in the U.S. besides Circuit of The Americas in Austin, Texas that holds the proper FIA Grade 1 license to host an F1 event? You guessed it, Indianapolis Motor Speedway.
F1 Could Come “Home” to Indy
True, the relationship between IMS and F1 didn’t exactly end on the best of terms when the venue quit hosting the series back in ’07. At the time, Indy’s CEO, Tony George, hinted at F1’s very high hosting fees as an issue – although IndyCar’s schedule, the oval track, and even the starting line-up pattern all proved troublesome as well.
However, as F1’s managing director of motorsports Ross Brawn told RACER magazine last week: With “old friend” Roger Penske now at the helm, things could be different. “Roger has always had an interest in Formula 1 and been involved at times in Formula 1,” he said. “So, there’s very real possibilities for collaborations in the future.”
Would Penske be willing to take on the last-minute logistical nightmare of hosting an F1 Grand Prix? With the proper sweetheart deal, maybe. As one astute commenter pointed out: “F1 is over a barrel right now in terms of venues because of COVID, and they are also trying to raise their profile here in the USA. What better way to do that than by going back to Indy?”
Time will tell. For what it’s worth, an IMS spokesperson told RACER magazine that while Penske and F1 hold regular talks, “those talks have yet to include being an option later this year if needed.”
Additionally, Miami just joined the F1 venue roster for 2022. The city’s race will be held on a new layout at the Hard Rock Stadium complex in Miami Gardens, home to the NFL’s Miami Dolphins franchise. It will be the first in a 10-race deal.
Did you know…?
The first in-person “wraps” event hits the Indianapolis Convention Center next week. Dubbed “WRAPSCON,” the event runs June 15-17, and brings the best graphics installers and leading companies under one roof to enjoy demonstrations, product showcases, and a unique, single-elimination team wraps contest. Learn more here.
Ford Builds More Electric Mustangs Than Gas-Powered Ponies
From new models to new infrastructure, EVs have been high on industry agendas lately. At Ford, this mindset translates to increased production – of Mach-E Mustangs, to be exact. According to production data the automaker released Thursday, 27,816 electric Mustang Mach-E models rolled out of a Mexico plant this year, compared to 26,089 traditional gas-engine Mustangs at a Michigan factory.
According to CEO Jim Farley, these results are more indicative of an upward trend than a numerical fluke. He expects 40 percent of Ford global sales to be fully electric by 2030, and plans to increase EV investments by a further $8 billion.
However, the ongoing microchip shortage could complicate this exciting milestone for Ford.
From power steering and brake sensing to back-up cameras and dashboard touchscreens, microchips are an important common denominator – and there are roughly 1,300 of them in just one gas-powered car. (Almost triple that in an EV.) To balance the crisis, Ford continues to prioritize new models.
“We have purposely protected our launches — Bronco, Bronco Sport, Mach-E, F-150,” said Farley. “If we can switch a module over to one of those launch vehicles, we have. We’re very protective of the launches because they are so important for our business.”
Without such production shuffling, it’s unlikely the EV Mustang could completely overshadow its gas-powered counterpart. However, it clearly holds appeal. While the traditional Mustang still outsells the electric version nearly three-to-one in the U.S., Ford sales data showed 1,945 Mach-Es sold in May for a total of 10,510 this year. Furthermore, the cars are only spending an average of 10 days on dealers’ lots.
If the new EV Mustang can be anywhere near as successful as the original, then the Mach-E is going to play a massive role in the rise and establishment of EVs in the U.S. marketplace.
Tesla Ditches Radar, Jeopardizes Safety Ratings
It’s fair to say that Tesla has been having a rough couple of months. From CEO Elon Musk courting controversy at every turn to the company’s self-driving tech falling under serious federal scrutiny, things could certainly be going better for the biggest name in American EVs.
Alas, now we have another confusing chapter to throw on top of the pile.
Last month, Tesla announced on its website that Model 3 and Model Y vehicles built for the North American market would no longer include radar. The company will instead rely on smart cameras to support its advanced driver assistance system, dubbed Autopilot. Despite touting the safety potential of radar in 2016, CEO Elon Musk called the technology a “crutch” that his company wanted to eliminate. He calls the new approach “Tesla Vision.”
Lingering Doubts
As Autopilot has long been a subject of confusion and controversy, it didn’t take long for safety organizations to weigh in. The National Highway Traffic Safety Administration removed safety designations it had awarded to the vehicles in forward collision warning, lane departure warning, crash avoidance braking, and dynamic brake support. Shortly thereafter, Consumer Reports and the Insurance Institute for Highway Safety revoked “Top Pick” and “Top Safety Pick+” designations for the Model 3.
“What they’re doing is a less-than-ideal solution for measuring distance, and then you don’t even have radar as a backup to verify those measurements, which you really need in low light, fog, or rain,” Sam Abuelsamid, principal research analyst at Guidehouse Insights, told Automotive News. “Really, I think they decided ‘We’re going all-in on cameras, and we save ourselves a few bucks by dropping a radar sensor.’”
Musk told EV publication, Electrek, the new system will improve safety. “NHTSA automatically removes the check mark for any cars with new hardware until they retest,” he wrote. “[Tesla Vision] will have all the safety features of prior vision+radar and then some. The probability of safety will be higher with pure vision than vision+radar, not lower. Vision has become so good that radar actually reduces signal/noise.”
Although Musk often ends up proving his wacky points, we’re struggling to see the upside here. This move feels like crowd-sourced beta testing, which in turn feels… wrong. Regardless, the new software is expected to roll out in two weeks.
Movers & Shakers
Another week goes by, another few mergers and industry shake-ups to report on. Despite the worrying pace of how often we have to tell you guys about this stuff, here are the latest!
Clarus Picks Up Rhino-Rack
Clarus Corporation, a Salt Lake City, Utah-company that manufactures outdoor equipment and lifestyle products focused on the climb, ski, mountain, and sport markets struck a deal last week to acquire Rhino-Rack – an Australian manufacturer of roof racks, trays, mounting systems, luggage boxes, carriers, and accessories. The deal closed at a purchase price just shy of $200 million.
“Immediately following the closing of the transaction, we intend to expand Rhino-Rack’s product penetration in North America, organically grow in its core Australia and New Zealand markets, and capitalize on our existing network of key distributors and dealers to develop sales in the rest of the world,” said John Walbrecht, president of Clarus.
Richard Cropley founded Rhino-Rack in 1992 after growing tired of finding inferior equipment in the marketplace. He built the brand from scratch, selling his home to launch the product line. Interestingly, Cropley only chose the name Rhino-Rack in order to appear before his rival, Rola, in Yellow Page listings.
The company, which employs more than 250 workers and operates from a headquarters in Western Sydney, will continue to operate independently as a wholly-owned indirect subsidiary. Cropley is anticipated to be a top-five shareholder of Clarus following the completion of the transaction – not a bad deal after three decades of hard work!
WARN Adds Fabtech Industries to Family of Brands
WARN Industries – the world’s most recognized brand in off-road products – has taken on Fabtech Industries’ suspension systems, shocks, and leveling kits for light trucks, Jeeps, and SUVs. Founded in 1989 as a custom fabrication firm, Fabtech cut its teeth in racing suspension systems and pre-runner builds, cages, bumpers, and other products. Today, the company boasts over 2,000 SKUs, as well as premium off-road performance brands Dirt Logic and Stealth Shocks.
The company will continue developing innovative solutions for the off-road segment under WARN, said founder Dave Winner, who is excited at the opportunities to leverage available resources as part of a larger entity. “We are proud of what we have accomplished over our 30-plus year history, and we look forward to continuing our traditions, now as part of WARN,” he added.
“We have admired the Fabtech brand heritage and made-in-the-USA mindset and are extremely excited to be able to align together,” said WARN Vice President & General Manager, Kyle Shiminski. “With strong brands and complementary categories to WARN’s truck, off-road, and overlanding segments, this partnership provides an opportunity to combine the premium brands of WARN, Factor 55, and Fabtech into a more all-encompassing solution for end-customers.”
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