Auto Industry News: FCA and PSA Make It Official, UAW Fire Faces Scrutiny, Hailie Deegan Signs With Ford Performance, And Entry-Level Land Rover To Give Bronco Some Competition
Things at the UAW seem to be unfolding like plot points in a John Grisham novel, as fire officials walk back on their original statements surrounding July’s blaze. Meanwhile, co-conspirator FCA seems to be moving on like nothing ever happened, making its merger with PSA official. Ford Performance adds Hailie Deegan to its roster while NASCAR continues testing its new Cup Series cars. And rumors abound about an entry-level Land Rover set to give the new Bronco a little more competition in the off-road segment.
All that and more in this week’s Auto Industry News.
Turns Out the UAW Fire Might Have Been Arson
Remember last week when we reported that arson had been ruled out as a cause of the July fire at UAW headquarters? Well, it appears that is no longer the case. According to Automotive News, “the Detroit Fire Department is contradicting its previous statement” with lieutenant and investigator Ted Copley telling the publication via email that, “The fire could have been accidental or incendiary.”
We may not be “professional firefighters,” but agree with the experts that something doesn’t add up here.
For starters, despite a UAW spokesman telling reporters the cause of the fire was an “equipment malfunction” and that “the fire marshal determined long ago there was no arson,” federal investigators had already moved to subpoena security camera footage and visitor logs to look into the comings and goings before the blaze. A move possibly motivated by the fact that charging documents indicate former UAW President Gary Jones told an aide he wished they “burned the records” pertaining to the corruption scheme. Three months later? Poof.
But even though literally everyone else involved in the fire investigation is not ruling out arson, the UAW is standing firm that absolutely nothing shady happened here, you guys.
“While a final report has not been issued by the city fire department or the insurance company, based on previous public statements from the fire inspector and our knowledge of the investigation to date, we do not expect any change to the determination that the fire was caused by an identified equipment malfunction, not an arson,” the union told Automotive News.
For their case, let’s hope so, eh? Because between the embezzlement and the threat of federal oversight, the UAW could sure use some good PR right about now.
FCA and PSA Sign Binding Merger, Creating World’s Third-Largest Automaker
Interestingly enough, the UAW’s co-conspirator in all this scheming, FCA, just celebrated quite a final month of the decade.
In addition to peacefully negotiating a fresh four-year contract with new UAW officials, the Italian-American automaker has just made its landmark merger with PSA official. Together, the two companies will form the world’s third-largest automaker.
The 50-50 merger deal that brings iconic badges like Dodge, Jeep, Maserati and Opel together under the same roof gives the newly formed brand the power to push automakers like Honda, GM and Ford for supremacy in the changing face of the auto industry.
During a joint press conference to make the deal official, the automakers committed to not shutting down any plants as a result of the $50 billion merger and made it clear they expect to sell around 8.7 million vehicles annually. The partnership will reduce costs and give both companies access to each other’s vehicle platforms, engines, and proprietary technology.
Leadership for the new joint venture will consist of PSA Groupe CEO Carlos Tavares stepping in as head CEO, while FCA chairman John Elkann will become its chairman. “Our merger is a huge opportunity to take a stronger position in the auto industry,” Tavares said during the press conference, “as we seek to master the transition to a world of clean, safe, and sustainable mobility and to provide our customers with world-class products, technology, and services.”
While there are still issues to be ironed out, like approval from shareholders and multiple government agencies, this is a massive move that will undoubtedly shake up the future of the auto industry. As global emissions standards get tighter by the year and traditional car sales continue to dip, don’t be surprised as other automakers begin buddying up in the coming years to offset the costs of innovation.
Retro-Revival Gains Some Competition
As the off-road market prepares for the return of the indomitable Ford Bronco, rumors have swirled about what this could mean for the current segment dominator, the Wrangler. And with whispers of a removable top and doors, solid axles, and manual transmission on the docket, Jeep might just have reason for concern.
Well, now it seems that another badge is looking to get in on the action, providing some healthy competition for the, er, competition. According to Ford Authority, Land Rover is reportedly working on an entry-level off-roader inspired by the legendary Defender. Seating five and codenamed “L860,” the media site reports it should arrive sometime in 2021.
So, what does a competitively-priced Land Rover look like? Well, how about below $33k?
“That price would put the five-door vehicle at a much lower cost than the existing 4-door Jeep Wrangler that owns the off-road market today,” says Ford Authority, who adds that pricing for the Bronco is expected to be somewhere in the upper $30,000-range.
This likely comes as unwanted news for Ford, who is currently battling a bit of early embarrassment for their comeback kid. The Bronco R, which surprise-debuted at SEMA as a prototype racing version of the Bronco, was forced to bow out of the preeminent desert racing event, the Baja 1000.
The Bronco R prototype was one of the many vehicles among the “DNF” category according to Jalopnik, despite Ford communications manager Mike Levine insisting the pre-production parts “performed flawlessly” with “no engine or chassis issues.”
As news breaks that Land Rover has acquired off-road manufacturing specialist, Bowler, could it be the Brits are looking to give Ford a run for its money in the rally-raid department as well? Either way, this new Land Rover looks to be just the first competitor to make itself known.
Around the Circuit
Hailie Deegan Signs With Ford Performance for 2020
Ford Performance finalized a deal to bring exciting young racer Hailie Deegan into its driver development program, locking up a talent that many consider to be the next Danica Patrick.
The 18-year-old Californian might be young, but she’s very much accomplished already. Deegan is the only woman to win the NASCAR K&N Pro Series West and plans to race full-time for Ford in the ARCA oval series in 2020. Now, she’ll strap into her Mustang under the Ford banner at Daytona in January.
“She already has a large fan base, which we’re excited to get to know.,” said Ford Performance Marketing boss Rob Johnston. “I think a lot of people are going to be joining her as fans because they’re going to want to follow the story and we’ll be able to link that to showcasing Ford products, whether it be Mustang, maybe the new Bronco, and certainly our trucks.”
Deegan is the daughter of Brian Deegan, the most decorated Freestyle Motocross rider in X Games history. Deegan senior drove for Ford as part of his career, as well, driving Fiestas in Rallycross and a Raptor in the Lucas Oil Off-Road Series.
“Toyota, they introduced me to the NASCAR world … they pushed me into it, they gave me a really good base and that’s something I’m super thankful for,” Deegan told NBC Sports. “But at the end of the day, there’s so many Toyota drivers and there’s not many seats. I think we made the best decision for my career long-term.”
NASCAR Next-Gen Cup Series Car
The nation’s top racing series is reportedly testing out the next-generation of NASCAR Cup Series cars featuring an innovative six-speed gearbox (up from today’s four) and upgrading from the traditional H-pattern unit to a sequential gearbox design. Additionally, the new Cup cars will see a new body design, independent rear suspension, and larger wheels, tires, and brakes.
Driver Joey Logano was tasked with testing out the new prototype, built by Richard Childress Racing, at Phoenix International Speedway earlier this month.
“It’s not about what drives the best, what’s the easiest to drive … we don’t want that,” Logano said. “We want something that’s challenging, that will show that the best driver and the best team will prevail … We’re still in the preliminary stages, but we definitely have some cool pieces to the car.”
Designing a car that better represents its stock counterpart isn’t the only change on the docket, however.
It appears NASCAR is also kicking around the idea of adding street racing in 2021.
NASCAR is reportedly looking to expand into eight new markets in 2022, a move that might lead to things like team-ups with IndyCar at racing venues like Long Beach, California.
Compounding the speculation, president Steve Phelps said at a press conference, “We’re having a lot of discussions right now on the 2021 schedule, and we’re looking at three things when we’re looking at that race schedule: where we’re going to have the most competitive racing we can have, where we’re going to have full grandstands, and what does that market look like — is it a new market we can service?”
Regardless of which of these changes might become official, NASCAR clearly has its eyes on innovating and improving for its fans in the coming years.
Paul Walker Collection Headed to Barrett-Jackson
Twenty-one collectible vehicles belonging to the late Fast and Furious star Paul Walker are set to be auctioned off at Barrett-Jackson’s 49th Annual Scottsdale Auction, running January 11 to January 19, 2020.
Some of the gems in the collection include seven BMW M3s, a 1989 Nissan Skyline, and a 2009 Nissan 370Z actually used on set of the now-iconic Fast Five film.
“We’re deeply honored to offer the amazing Paul Walker Collection at our 2020 Scottdale Auction,” said Craig Jackson chairman and CEO of Barrett-Jackson. “Paul’s impact was immense through both his influence as an actor in the ‘Fast and the Furious’ movies and his philanthropic drive as the founder of Reach Out Worldwide. We’re proud to help continue Paul Walker’s legacy by offering his esteemed collection to their new caretakers at our flagship Scottsdale event.”
