Auto Industry News: Enthusiast Events Draw Big Crowds, U.S. Fleet Hits Another Milestone, and Hyundai Cuts Sonata

Warm weather is rolling in, and it brings plenty of automotive excitement along for the ride. At two different ends of the enthusiast scene, Overland Expo and Mecum Auctions both wrapped up their biggest events of the year – with some seriously impressive turnouts. On the industry side of things, the average age of U.S. vehicles just hit another milestone, reaching the ripe old age of 12.2 years. And despite the continual uptick of fuel prices, it appears automakers still don’t see passenger car popularity bouncing back. Rumor has it Hyundai will retire its iconic Sonata sedan in favor of the new Ioniq EV. And speaking of EVs… executive shake-ups and consumer complaints suggest a few more headaches for electric darling, Rivian. All that and more in this week’s Auto Industry News.

Go (Expo) West

The numbers are in, and this month’s Overland Expo West drew in an impressive 28,000 attendees from around the globe, along with hundreds of exhibitors, presenters, trainers, and VIPs. The event – which ran May 20-22 in sunny Flagstaff, Arizona – is perhaps the most well-known of the Overlanding Expo series, which in itself represents the premier overlanding and adventure travel event series in the world.

Measuring the growth of the overlanding movement can be a little tricky, as no one seems capable of clearly defining what overlanding actually is. Regardless, the Expo events serve as a good guesstimater. Attendance at the West event alone swelled from 5,000 in 2015 to more than 22,000 in 2019 and then surged again to current numbers post-COVID. Additionally, the series itself has grown.

Overland Expo West was initially balanced with an eastern-based event in the Fall. However, last year organizers added an August gathering in Loveland, Colorado, dubbed Overland Mountain West. The inaugural event attracted a whopping 17,000 attendees, and proved a good catalyst for yet another expo to join the calendar. The very first Overland Expo Pacific Northwest hits the beautiful Deschutes County Expo Center near Bend, Oregon, July 8-10. Learn more here.

Overland Expo events are also popular debut destinations. At this month’s “West” gathering, GMC showed off its new Sierra 1500 AT4X – wearing a few extra bells and whistles. The overland build, completed by Mule Expedition Outfitters, features electronic locking front and rear differentials, a specially-tuned high-performance suspension, extra underbody protection, and rugged 33-inch tires. A 6.4-foot flatbed replaces the cargo bed, and wears a 3.0-foot canopy-covered camp kitchen and heated shower.

Mecum Indy

While adventure-seekers hit Arizona in droves, collector car enthusiasts showed their love in Indianapolis. Mecum published the sales stats from its 35th annual Indy auction, and it seems that despite rampant inflation, people are still scooping up classic and collector vehicles like latkes at the church bazaar.

Indy 2022 raked in an incredible $126.5 million in total overall sales. That’s an 18% increase over the past Indy auction – which was also a record-smashing affair at $107 million in sales. This year’s event enjoyed a similarly incredible sell-through rate, as well. Mecum says 90% of all offerings at Indy saw the hammer fall, including a total of 81% of all 2,504 vehicles offered.

The No. 1 top seller was Evernham’s 1965 Brawner Hawk Ford “Dean Van Lines Special” Indy Car. Driven by Mario Andretti in back-to-back Indy Car Championships in 1965 and 1966, this piece of American racing history sold for $2.2 million when it crossed the auction block at no reserve.

Other top sellers included a jaw-droppingly beautiful 1957 Mercedes-Benz 300SL Roadster, which sold for $1.375 million, and a very rare (and very valuable) 1969 Dodge Hemi Daytona, which sold for $1.32 million. The Hemi Daytona is believed to be the most highly-optioned one in existence.

U.S. Fleet Hits Tweens

Speaking of older cars… According to new research from S&P Global Mobility (formerly the automotive team at IHS Markit), the average age of light vehicles in operation in the U.S. just rose to 12.2 years. This marks a nearly 2% bump from 2021, and a new all-time high.

While it’s true that modern vehicles simply last longer (200,000 miles is the new 100k), the analysis indicates that there are other factors at play. The global microchip shortage, combined with associated supply chain and inventory challenges, makes it difficult to find a new vehicle. Many folks turned to the used market – and ultimately exhausted that supply. The rest of us were left with the choice to either take public transportation (which really lost its luster in a COVID world) or hold onto our current rides a little longer. (The average vehicle age in my own home just hit 15 years.)

As supply chain issues continue to linger, S&P expects the average age will continue to have upward pressure through 2022 and 2023. This trend – along with strong average vehicle miles traveled – spells growing business potential for the aftermarket in repair and maintenance revenue.

More Sedans to Hit the Chopping Block

While there are still roughly 114.8 million passenger cars (or about 40% of the U.S. fleet) zipping around American roads, the availability and popularity of new sedan models continues to dwindle in favor of pickups, SUVs, and crossovers. Detroit’s Big Three all but abandoned the segment in recent years, keeping just a few performance models in their lineups.

It seems that Hyundai is now following their lead. According to a South Korean newspaper, the automaker is discontinuing its midsize Sonata sedan after the current generation runs its course.

Sold in the U.S. since 1989, the Sonata has been a staple in the Hyundai lineup and slots above the Elantra and Accent sedans. It received a dramatic redesign in 2020, gaining a much more stylish and aggressive interior, better appointed interior, and three new powertrains.

Hyundai insists the report is just speculation. However, in December 2021 the brand shut down its internal combustion engine development team amid a new focus on EVs. The automaker also said it plans to be carbon-neutral by 2035. With that information in mind, it’s possible that Hyundai’s upcoming Ioniq 6 EV sedan may replace the Sonata in a 1-to-1 switch. If so, there’s a reason to suspect the Sonata’s platform-mate, the Kia K5 sedan, may also see the chopping block. Automotive News reports that another Kia sedan, the rear-wheel-drive Stinger, will likely be cut in the coming months, with the forthcoming Kia EV6 GT filling the void.

Hyundai Recall for Exploding Seat Belts

In other Hyundai news, the automaker is recalling 239,000 vehicles in the U.S. due to an exploding seat belt part. The recall affects 2019–2022 Accents, 2021–2023 Elantras, and 2021–2022 Elantra Hybrids.

According to NHTSA, the front driver and passenger-side seat belt pretensioners may deploy abnormally during a crash and cause metal fragments to eject into the vehicle’s cabin. (A seat belt pretensioner is what tightens and locks the seat belt in place during a crash or hard braking, so you don’t propel forward.) Two injuries have been reported in the U.S., along with one in Singapore.

No root cause for the seat belt explosion has been determined yet, but Hyundai is actively investigating. For now, dealers will secure the pretensioners with a safety cap free of charge.

Did you know…?

Ford agreed to cough up $19.2 million in a multi-state settlement to resolve allegations of false advertising. According to the Iowa Attorney General’s Office, the Blue Oval advertised real-world fuel economy and payload capacity for some hybrids and pickup trucks that “were not based in reality, leaving customers with vehicles that did not meet their standards.”

Headaches for Rivian

As we’ve recently reported, EV start-up Rivian has endured quite a few speed bumps on its path to profitability. In addition to supply chain issues and poor Q1 earnings, the company’s big backer Ford sold off millions of shares earlier this month which caused investors to lose some faith in the company’s stock.

Now, the automaker has lost its head of manufacturing amid a corporate reshuffling. CEO R.J. Scaringe confirmed on Friday that Charly Mwangi, who helped bring the R1T pickup truck and R1S SUV to production, would be leaving for personal reasons. His departure comes just as former Magna International executive Frank Klein is set to become chief operations officer, a position which will oversee production, supply chain, and manufacturing engineering.

The executive shake-up comes at either a very inopportune or a very fortuitous time, as Reuters reports that Rivian is fielding dozens of complaints from reservation holders. The grumblings are in response to the automaker’s decision to prioritize certain build combinations due to supply issues. Inevitably, this complicates delivery timetables for many customers and is causing longer delays. Coming on the heels of a recent price hike, it’s understandable that early brand adopters are frustrated.

Adding to the recent production mishaps, Rivian’s Illinois manufacturing plant had a fire on Saturday morning in its battery testing area. Firefighters said the battery pack had been in a repair area and was being tested when it ignited, but that the fire’s exact cause is still under investigation.

This is the third fire at the plant in the past seven months. “In February, a vehicle caught fire inside the plant, though the sprinkler system kept it from spreading,” local news outlet WGLT reports. “In October 2021, a small fire broke out in the automated battery assembly area.”

Fuel Demand Weakens

AAA’s gas tracker shows that fuel prices continue their steady climb, with the national average increasing by a penny to $4.60/gallon – a 40% increase so far this year. Interestingly, forecasters expected the increase to be higher but noted a “softening of gas demand has helped minimize price increases ahead of Memorial Day.” (Thank heaven for small mercies, I suppose.)

While more Americans hit the road this past weekend for the holiday, analysts say overall low demand is likely to stick around. High prices will encourage less fill-ups and trips that are closer to home. It’s possible this decline could help curb the pace of rising prices, causing them to peak closer to July rather than their traditional point in mid-May. Regardless, analysts say to brace for at least $5/gallon nationally.

The Engine Block is your one-stop source for any and all auto industry news. Keep an eye on our weekly round-up of enthusiast coverage, product reviews, vehicle spotlights, auto show/expo features, and more. Be sure to check back Wednesday for a Q&A with performance gauge leader Autometer, and tune in Friday for a rundown on how to find the perfect parts at a car swap.