Auto Industry News: GAS Succeeds LOORRS, Daytona 500 Gets A Fiery Start, Musk Gambles on Bitcoin, UAW Presses Pause, and Mitsubishi Tries Something New

Renowned market disruptor Elon Musk looks to shake up the auto industry, this time with a $1.5 billion bitcoin bet. Meanwhile, UAW President Rory Gamble questions the sudden rush to EVs and asks everyone to take a breath. Mitsubishi proves it’s still alive and kicking, organizing an industry-first Amazon Live vehicle debut. And the 63rd Daytona 500 kicks off the NASCAR season with plenty of fiery drama – literally.

But first, we have some exciting news for short course racing fans!

New 2020 Jeep Gladiator 3”/5” Crawler Lift Kit with 2.5 Coilovers
Fabtech now offers its Dirt Logic Coilover Conversion and long arm Crawler suspension for 2020 Jeep Gladiators as ONE kit. Float over rough off-road terrain while maintaining impeccable highway manners with this new high-end suspension kit. This is the single biggest improvement you can do to your Jeep to improve the ride quality while strengthening the suspension for both on and off-road use. | Fabtech

GAS Steps In Where LOORRS Left Off

When Lucas Oil announced its decision to discontinue ownership and operation of the popular Lucas Oil Off Road Racing Series (LOORRS) in November, fans of the action-packed grassroots style of racing were crushed. At the time, we were confident that a similar series would step in to fill the empty space.

We’re happy to report our high hopes paid off!Great American Short Course Racing Logo

Last week, veteran short course race series director Lee Perfect and race promoter Dave Cole of Hammerking Productions announced the exciting formation of a new series, Great American Short Course (GAS) powered by OPTIMA Batteries.

GAS aims to not only fill the void left by LOORRS, but also grow short course racing to new heights since the niche market has faced difficulty holding onto longstanding support.

The new series starts out with four events split between the spring and fall, held at well-known short course tracks near major metropolitan centers. To freshen things up, GAS is fine-tuning existing rules and adding exciting new twists based on racers’ feedback.

Targeting a Wider Audience

“We learned from King of the Hammers that it’s better to have your fans be able to actively participate at the events than just sit there watching, and we aim to provide that opportunity here,” said Cole.

As a result, GAS intends to tap into Cole’s video and live streaming production capabilities under Hammerking Productions to keep fans engaged.

“One of my favorite things about the races that Cole puts on is how easy he makes it for the fans to enjoy the races and to make sure they are really a part of the action,” said Sara Morosan, Vice President of LGE-CTS Motorsports and lifelong off-roader. “Besides being out at the actual races, he has some of the best coverage for all those sitting at home to enjoy them.”

Watch Hammerking Productions compelling storytelling in the 2020 KOH trailer below.

A longtime fan of SoCal short course racing, Morosan noted she “can’t think of a better combination of people” to bring back the sport.

Husband and wife team Lee and Poppy Perfect have been involved in both Midwestern and West Coast short course racing for more than a decade. Morosan said LGE-CTS Motorsports was a sponsor for the regional series, and loved the grassroots racing and family-feel.

“The best part was the trophy karts,” she said. “We watched that class go from 20 kids to over 80+ kids on the track, and now some of them are the fastest and best racers out there on the course! To see them now compete in Best of the Desert, SCORE, and Ultra4 is absolutely amazing.”

“I can’t wait to see this new series take off and to see some of the old short-course guys out there on the track as well as the new ones it will bring along,” she continued.

In Case You Missed It…

LINE-X will partner with Team Lucas in the sponsoring of its national racing events, Lucas Oil Late Model Dirt Series and the Lucas Oil Pro Pulling League for the 2021 season. The well-known manufacturer of high-performance protective coatings and automotive and lifestyle accessories will partner with Team Lucas in the sponsoring of its national racing events. Read more here.

Chaos Rules Daytona 500

It was an insane day of racing – chock-full of weather delays, high tempers, and more than one terrifying wreck, nearly 20 years to the day of racing legend Dale Earnhardt’s death after a horrific crash on the final lap of the 2001 Daytona 500.

“The Big One”

After only 14 laps of the NASCAR season opener, a large crash took multiple cars out of the running. Christopher Bell made an aggressive attempt to push, and instead sent Aric Almirola’s No. 10 Ford up the track and into pole-sitter Alex Bowman. As the two came spinning back into the field after hitting the backstretch wall, they took out a further 16 cars, including big names like Martin Truex Jr., Erik Jones, Kurt Busch, Ryan Newman, Tyler Reddick, Ryan Blaney, Matt DiBenedetto, and William Byron.

Multi-car wreck at the start of the 2021 Daytona 500
Mark J. Rebilas | USA TODAY Sports

“We were just getting pushed too hard too early,” said Almirola. “It’s a long, long race. Man, we were in a fine position, just sitting there riding around in the top two, three and the 20 (Bell) just came with a big run and hit me really hard in a bad spot and it turned me to the right and tore up our race car and ended our Daytona 500 way too early.”

The skies opened only one lap later, dumping five hours’ worth of rain onto the track and delaying the race. Engines eventually re-fired at 9:07 p.m. ET, and the race resumed with 24 cars on the lead lap. And what a race it was!

A New Champion

Michael McDowell – a driver who hasn’t won any of his 357 races across 13 Cup Series seasons, and never led this race until the final moments of the final lap – avoided another fiery wreck in Turn 3 of the final lap to capture his first-ever victory. So, if you had your money on a McDowell victory, enjoy cashing in on those 100-1 odds!

“I can’t believe it,” McDowell said. “I’ve got to thank God. So many years of just grinding it out, hoping for an opportunity like this. I’ve got to thank (team owner) Bob Jenkins for giving me this opportunity. I’m so thankful. What a great way to get a first victory — in the Daytona 500!”

Reigning series champ Chase Elliott dodged the last-lap crash to finish second, followed by Austin Dillon in third, Kevin Harvick in fourth, and Denny Hamlin in fifth. Hamlin won the legendary race the past two years and was aiming to be the first driver in history to score a Daytona 500 three-peat.

The next scheduled NASCAR Cup Series’ race is Sunday (3 p.m. ET, FOX, MRN, SiriusXM) at Daytona’s 3.61-mile road-course layout.

Tesla Invests $1.5B in Bitcoin, Will Accept the Cybercurrency As Payment

Name a more iconic duo than Elon Musk and Bitcoin. Go ahead, I’ll wait.

The world’s richest man has had a long, drawn-out, on-again-off-again relationship with the world’s most famous and volatile cryptocurrency. Now, he’s taking that love affair to the next level. Musk’s EV company Tesla has invested $1.5 billion in the crypto world, shaking up the markets and sending Bitcoin’s value to the moon. The maverick CEO also insinuated that Tesla would accept the 12-year-old currency as payment for its products and services. At the time of writing, picking up a fresh Model S would cost you about $69,240, or about one-and-a-half Bitcoins.

So, this seems like a cool idea, right? But how exactly does it impact economic markets, the auto industry, and consumers? Buckle up, there’s a lot to unpack here.

Why Bitcoin?

Image of Bitcoin
Getty Images

In a filing with the SEC, Tesla wrote: “We updated our investment policy to provide us with more flexibility to further diversify and maximize returns on our cash.”

Like Musk, the company seems to believe in the future of cryptocurrency. With cash on hand, Tesla decided to get ahead of any further price spikes. However, the move comes with a fair amount of risk as Bitcoin is an unpredictable currency whose value is beholden to non-traditional factors.

“If we hold digital assets and their values decrease relative to our purchase prices, our financial condition may be harmed,” the company admits.

Risky Business

Additionally, we don’t really know how the company will process Bitcoin payments. While most companies utilize the services of a cryptocurrency payment processor that essentially converts Bitcoin to cash, experts suggest Tesla may cut the middle man and create its own processing system. Again, a risky move if Bitcoin values plummet and you’re the one left holding the bag… of, erm, virtual coins.

“The firm cannot accept $35,000 for a Model 3 today and then $29,000 tomorrow, it is just not good business,” Danyaal Rashid, head of thematic research at GlobalData, explained to CNN Business. “In bitcoin, swings of 10% – 20% in price in a matter of days are not uncommon.”

As for the markets, we certainly wouldn’t be surprised if Musk and his involvement with Bitcoin attract the attention of regulatory bodies like the SEC. Musk was already punished for tweets about the stock value of Tesla, so his recent tweets pumping up cryptos like Dogecoin and Bitcoin might be subject to scrutiny.

Environmentally Unsound?

Another factor to consider is Bitcoin’s “dirty baggage.”

To create the digital currency, high-powered computers compete against one another to solve exceptionally complex math problems. (Yes, we are aware this sounds like a plot device from a sci-fi flick.) This “mining” process has become increasingly difficult, in an effort to slow the generation of new Bitcoins. So difficult, in fact, that if you started mining now, it could be years before you earned even a single Bitcoin.

Current rates of Bitcoin mining use roughly the same amount of energy as the Netherlands did in all of 2019, according to data from the University of Cambridge and the International Energy Agency. Another study from the scientific journal Joule, estimates Bitcoin production generates between 22 and 22.9 million metric tons of carbon dioxide emissions a year, or between the levels produced by Jordan and Sri Lanka.

That not-so-green approach seems to directly conflict with Tesla’s image as a zero-carbon EV company.

We’ll have to wait and see if this new high for Bitcoin has lasting power or if it is just another flash in the pan, much like Gamestop’s volatile investment ride. However, if there’s one thing we know, it’s not to underestimate Musk’s ability to move markets.

Westin R5 M-Series Wheel to Nerf Step Bars
For those who still love big, burly HD trucks, Westin offers new wheel-to-wheel nerf step bars to boost your rig’s wow factor. Featuring an extra drop 3 inches lower to the ground, these nerf bars are engineered to provide drivers and passengers safer and easier cab-entry access. Other consumer-friendly features include 5-inch skid-resistant step pads, a third step for easier cargo bed access, and an optional light kit for better vision. A modular design ensures a headache-free installation. Pictured on Chevy Silverado HD LTZ and Chevy Silverado HD Z71 | Westin

UAW Pres Asks Everyone to Pause a Moment on EVs

While big-name automakers continue to pour billions of dollars into creating zero-emissions EVs and make ambitious pledges to be carbon neutral before your baby hits Kindergarten, the president of the United Auto Workers (UAW) Union would like everyone to take mindful pause and look at the big picture.

Considering the UAW’s recent scandal-riddled past, it feels strange to be praising the union’s top brass for being the voice of reason, but here we are.

During a recent call with the Automotive Press Association, UAW President Rory Gamble said the union knows technology is changing rapidly, and it is willing to embrace the shift. But at the same time, the UAW has a duty “to protect our members’ standard of living,” he said.

For this reason, Gamble urges “everyone to take a little step back” and consider some of the large roadblocks to the mainstreaming of electric vehicles. He cites three major areas for concern: an adequate charging infrastructure, the proliferation of good-paying jobs, and a consumer market that is willing to accept battery electric vehicles. Last year, only 1.9% of new vehicles sold in the U.S. were electric.

A Familiar Song & Dance

Gamble compared the situation with EVs to the shift towards smaller vehicles after the 1970s oil crisis – vehicles that did not appeal to contemporary consumers.

“I remember that,” he said. “Our members were the ones who suffered.”

Gamble added that the UAW is currently updating a study it did in 2018 exploring the potential impact of EVs on the UAW’s future membership.

Other issues Gamble touched on were the struggles that come with working with a new Presidential administration in the White House, especially since Biden has committed to pushing for more U.S.-based production of EVs. However, he noted “There is a lot of dialogue” between the UAW and the White House, a relationship he felt was lacking with the previous administration.

In our view, Gamble raises valid concerns. His call for “a mixture of vehicles with a broader variety of propulsion systems,” is a wise suggestion, especially as American consumers remain lukewarm toward EVs and dealers show even greater hesitation.

EV planning moves forward: Toyota just announced it will be adding two all-electric vehicles to its lineup in 2022. However, the Japanese automaker remains committed to offering a mix of alternative powertrain technologies and insists plug-in hybrids remain a part of the solution. The Detroit Bureau has more.

New Mitsubishi SUV to Debut in Industry-First Amazon Live Event

COVID hit the gas on creative vehicle debuts, a trend already gaining ground as the traditional auto show began to show its age. We’ve seen social media blitzes and clever contests, even a giveaway or two. But Mitsubishi’s partnering with Amazon to debut its all-new 2022 Outlander on the online retailer giant’s Live platform is certainly a first for the auto industry.

While little is known about the next-gen SUV, we can expect to see more rugged exterior styling and larger, more truck-like proportions – a design move that is on-brand for the majority of automakers today. The 2022 Outlander should also sport an updated all-wheel-drive system.

Amazon won’t actually be handling any sales or deliveries of the new SUV. (Although, to that we say: “Just give them time.”) However, the marketplace will offer a dedicated vehicle research section. The 2022 Mitsubishi Outlander should arrive in dealerships shortly after its buzzy debut.

The big event is scheduled to take place tomorrow, February 16, 2021 at 6:00pm EST. You can tune in on Amazon.com or the manufacturer’s website.

In Case You Missed It…

The rumored deal between Apple and Hyundai/KIA to develop the tech giant’s long-awaited self-driving electric car is apparently off before it was ever really on. Last month, the Korean carmaker announced it was “in talks” regarding an Apple Car. According to Bloomberg, the statement “upset” Apple – which is notoriously secret about its development projects – provoking the company to pump the brakes on the potential partnership. Read more here.

Speaking of self-driving technology, a new survey from AutoList.com shows consumers are split on whether self-driving features actually make a vehicle safer (36% say no, 36% say yes, and 28% are unsure). Interestingly, the self-driving feature consumers wanted least on their vehicle? Hands-free driving on city streets.

Mercedes-Benz is recalling more than 1.3 million vehicles from 2016-2021 model years, due to faulty emergency-call systems software that could send responders to the wrong location after a crash. The automaker said it will notify affected owners and make necessary updates at no charge.

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 Part 2 of our series on the top overlanding vehicles for 2021.

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