Auto Industry News: Ford Under Federal Investigation for Emissions Violations Just as $500 Million Rivian Investment is Made Public, Plus Highlights from 2019 NYIAS

Ford joins a growing number of automakers facing federal investigation for potential emissions violations, just as it announces a $500 million investment in electric start-up Rivian. (Yea, the same one GM was courting awhile back…) We give you the highlights of 2019 NYIAS, which showed a promising turnout and some interesting new rides. Valtteri Bottas continues to keep things interesting during this year’s F1 season, while NASCAR fans had plenty of entertainment this weekend in Talladega.

Ford Under Fire as Federal Investigation Heats Up

Ford announced last Friday that the U.S. Justice Department has launched an official criminal investigation into the company’s emissions certification process regarding car, truck, and SUV models going all the way back to 2017—a major black eye for an American industrial giant.

Ford became aware of the issue in September 2018, via an anonymous “Speak Up” reporting system. An employee expressed concern that the company was miscalculating gas mileage and pollutant emissions numbers on vehicles. Despite the federal investigation and wagging eyebrows, though, Ford is adamant that this is not a “Dieselgate” situation.

Ford’s Head of North American Product Communications, Said Deep, told reporters in February, “As soon as we learned of our employee concerns in September, we engaged a third-party firm at the end of October to perform initial review, which ended in December. We began a full internal investigation in December, leading to this week’s voluntary disclosure about our investigation to the EPA and CARB. We estimate the full investigation will take several more months.”

However, regardless of Ford’s efforts to get ahead of the problem, environmental and consumer advocacy groups have expressed outrage over the automaker’s almost five-month delay in disclosing the issues. Those closer to the auto industry have praised Ford for being proactive and willingly alerting both the government and the public.

Since February, the automaker has cooperated with authorities, holding meetings with the EPA and CARB, drawing up new testing plans, and turning over all documents related to its third-party review. According to Automotive News, the first vehicle Ford is evaluating per the newly-approved emissions tests is the popular 2019 Ranger midsize pickup. (A vehicle that already needed to be recalled in February for wiring issues.)

A Growing Trend?

Concerns over proper emissions and gas mileage reporting has become a shockingly common issue of late, for auto manufacturers all over the world. Aside from VW’s international scandal, big names like Hyundai and Kia have coughed up millions in civil fines for misrepresenting fuel-economy data. Mitsubishi came under fire for incorrect coastdown testing in 2016. FCA, along with supplier Bosch, is in hot water with the feds over diesel cheating allegations. And now both Mercedes and Porsche are under watchful eyes for potential misconduct.

Regardless of Ford’s ignorance in the matter, it’s tough to imagine the automaker will avoid similar fines if the numbers don’t match up. And, according to CNET, Ford said in last week’s SEC filing that it “’cannot provide assurance that [the investigation and potential outcome] will not have a material adverse effect’ on the company.”

That could be bad news for the Blue Oval, who reported a rough first-quarter net income as it struggles with global restructuring efforts, including killing off sedans and adopting next-gen tech.

Speaking of which….

Electric Start-Up Rivian Announces $500 Million Investment from Ford (After GM Swiped Left)

According to Aftermarket News, up-and-coming auto tech company, Rivian, is working with Ford to develop a new, next-generation battery for electric vehicles. A deal that comes with a generous $500 million investment from the auto industry giant.

Experts link Ford’s interest in Rivian to its need to build up a viable EV portfolio—an area where the massive automaker is lacking compared to other competing OE’s in the space.

Those paying close attention to Ford’s finances shouldn’t be too shocked over the investment, since the company announced plans in July to sink over $11 billion over the next 3 – 5 years on electric and self-driving tech. This partnership with Rivian seems like a logical next step toward that goal.

This feels like a good move for Ford in a week where the automaker could really use a win. And sweetening the pie is this: negotiators over at GM might be kicking themselves after the deal was made official.

Sources of CNBC told the news outlet that GM’s asking price for Rivian was just too high—namely its demands for “exclusive rights to the start-up’s technology.” Those disagreements allowed Ford to seize the opportunity and close the deal.

“Rivian CEO RJ Scaringe already had a personal friendship with one of Ford’s board members, a classmate from MIT,” reports CNBS. “And Ford [allegedly] made him a deal that allows Rivian to move ahead with plans to develop its own brand and dealer network and potentially sign up other automotive partners.”

The deal seems promising, especially as the all-electric Rivian R1T pickup and its SUV-sibling the R1S made quite a splash at the 2019 New York Auto Show this past week, their second big event since debuting at the LA Auto Show late last year.

SUVs, Luxury Brands Make Big Impression at the 2019 NYIAS

Car experts rejoice, it’s that glorious time of year again! It’s time for the 2019 New York International Auto Show. America’s first ever automotive exhibition, now running for over 100 years—through depression, war, boom-time, oil crisis, recession, and growth—has built a world-class reputation for business, consumer, and lifestyle showcases. So, with the last big auto show of the season coming to a close, let’s have a look at some of the shining moments of 2019 NYIAS.

Perhaps the biggest winners at this year’s show were SUVs and crossovers. Despite how you feel about the segment, it’s here to stay. And with more than ten different brands debuting new models with a variety of exciting features, it’s clear that automakers are all-in. 2020 versions of the Ford Escape, Suburu Outback, Hyundai Venue, and Totoya Highlander all made a huge splash, showing off fine-tuned engines, user-friendly features, and top-notch drivability and design. (And the VW Atlas Basecamp concept was nothing if not interesting.)

Another highlight of 2019 NYIAS were the luxury and performance car premiers. Ford fans were gifted with a new, entry-level performance Mustang, equipped with an EcoBoost High-Performance package. Borrowing a 2.3L turbocharged 4-cylinder from the discontinued Focus RS hot hatch, Ford’s new ‘Stang will push out 330 hp and 350 lb.-ft. of torque with a 0-60 time in the mid-4’s.

Looking to the Future

Those looking for something a little sleeker and refined needed only to turn to Mercedes-Benz, Genesis, or Lincoln, who all positioned themselves as big players in the SUV/crossover space—as well as future tech.

Both Hyundai and Lincoln showcased their respective Sonata and Cosair lines with smartphone-linked keyless entry. The vehicles simply recognize your phone as you approach, unlocking the doors and allowing for remote start-up. The companies promise that loaning the car out to family and friends won’t be an issue, as you can send the key digitally. It even comes with valet settings.

(I don’t know about you guys, but I misplace my phone enough as it is. The extra anxiety of knowing it is also my car key sounds like a nightmare.)

Around the Circuit

Formula 1 Azerbaijan Grand Prix

For the fourth race of the F1 season, Mercedes once again dominated the track. A frustrating disappointment for Ferrari who had much higher hopes after excellent pre-season testing results.

Valtteri Bottas finished first, followed up by teammate (and last year’s winner) Lewis Hamilton. Ferrari’s Sebastian Vettel took third and Red Bull’s Max Verstappen held fourth. This marks an all-time record for Mercedes of four consecutive one-twos at the start of a season.

NASCAR: Talladega

In a great showing for Chevy, Chase Elliott finished first in the Monster Energy NASCAR Cup Series’ GEICO 500. The win marks his first at Talladega and the fourth of his career. Second place went to Hendrick Motorsports teammate Alex Bowman, with rookie Ryan Preece taking third.

While Chevy celebrated its 1-2-3 sweep, Kyle Larson celebrated walking away unscathed from a nasty flip on Turn 2 of Sunday’s final lap. Drivers William Byron and David Ragan made contact, causing Byron’s car to smash into Larson after hitting an outside wall. Larson went off the track and into the inside retaining wall.

“That was probably the longest flip I’ve ever had,” Larson said. “I didn’t know if it would ever stop. … It was a little bit scary, but thankfully I’m all right.”