Auto Industry News: Hot Rod Power Tour Kicks Off, Bronco Engines Shut Down, Charging Network Takes Shape, & Dealerships Face an Uncertain Future
Trying to keep up with the auto industry’s rapid pace of innovation is enough to give a person whiplash these days. EVs continue to pick up in production, and automakers are exploring more than just flashy features and building materials. Many – like Ford – are entertaining entirely new retail methods, threatening to upend traditional dealership models. The Engine Block breaks down what that might look like in a not-too-distant future.
Similarly, the current administration made progress this month hammering out requirements for a nationwide charging network. It’s a tall order to be sure, as one recent survey suggests the current batch of EV fast chargers are severely lacking in reliability. More on that in this week’s Auto Industry News, as well as highlights on NHTSA’s investigation into failing Bronco engines, Magna’s cool new lighting technology, and the 2022 Hot Rod Power Tour.
2022 Hot Rod Power Tour Begins
The legendary Hot Rod Power Tour kicks off today in midtown Memphis, beginning its five-day, five-city journey. Presented by eBay Motors and Driven by Continental Tire, this is the 28th running of the world’s largest traveling car show and it promises to be a big one! More than 3,500 different types of vehicles participated last year, with even more expected to turn out for the 2022 event. Organizers said they have registrations from 47 U.S. states and 3 Canadian provinces.
Gearheads can pop in at any point along the way, while “long-haulers” will travel the whole route alongside HOT ROD Magazine staff. It’s a grueling endeavor, as drivers will battle a cocktail of summer heat, road hazards, eye-watering gas prices, the finnicky whims of a classic vehicle, and enterprising thieves along the way.
This year’s tour travels 1,000 miles through the small towns of the American South, with stops in:
- Liberty Park, Memphis, Tenn.
- Nashville Superspeedway, Lebanon, Tenn.
- Hoover Met Complex, Hoover, Ala.
- Pensacola Fairgrounds, Pensacola, Fla.
- Atlanta Motor Speedway, Hampton, Ga.
In addition to crisscrossing the beautiful Southeast, Power Tour organizers lined up plenty of fun at each stop. Attractions include dragstrip days, dyno competitions, sponsor and vendor midways, autocross events, main stage entertainment, car shows, and more. If you’re interested in attending as a spectator, register online for a free ticket to be guaranteed entry.
NHTSA Investigating Bronco Engine Failures
Bad news for Ford this week, as the National Highway Traffic Safety Administration began investigating the automaker’s hottest vehicle after dozens of people reported their 2021 Ford Bronco lost motive power at highway speeds and then could not restart due to catastrophic engine failure.
The failure occurred in 2.7-liter EcoBoost V-6 engines, which are standard equipment on the Bronco Wildtrak and optional on all other models except the Everglades and Raptor. NHTSA estimates 25,538 Broncos are potentially affected. It is thought that a valvetrain defect is to blame.
Ford told Car & Driver last week that it is cooperating with NHTSA in investigating the issue. The automaker also reassured Bronco owners that their vehicles fall under the five-year/60,000-mile powertrain warranty. Unfortunately, for those folks who waited almost two years to take ownership, a solid warranty is likely poor consolation.
Did you know?
NHTSA upgraded and extended its investigation into Tesla’s Autopilot. Safety regulators initially launched an engineering analysis of the self-driving tech after 12 crashes resulting in 17 injuries and one death. With the crash toll now up to 16, and including several instances when Autopilot-engaged vehicles hit stopped emergency response vehicles, NHTSA is launching a deeper analysis into the technology. The investigation will now cover an estimated 830,000 vehicles from the 2014-22 model years.
Could Traditional Dealership Models Be a Thing of the Past?
In addition to long wait times, shoppers eying up immensely popular vehicle models like the Ford Bronco also tend to experience some extreme sticker shock due to dealer markups. This is especially true amid the current inventory crunch. However, a recent speech given by Ford CEO Jim Farley suggests these padded prices could be a thing of the past.
Speaking at the Bernstein 38th Annual Strategic Decisions Conference on June 1, Farley told attendees that his company was targeting 100% online electric vehicle sales and nonnegotiable, fixed prices. Additionally, he said that dealerships would no longer stock inventory. Rather, they would deliver customer orders or serve as pickup sites.
As you might expect, these comments led to some… fiery reactions… leading the automaker to do some back-pedaling. According to Ford spokesperson, Said Deep, who spoke with Road & Track magazine, the original comments were taken out of context. He explained that Ford is looking to develop a 100% digital online transaction platform – not transition 100% of sales to a digital platform. Big difference, especially if you make your living as a Ford dealer.
Essentially, Ford is noodling over a “phygital” solution – an insufferable buzzword meant to represent the physical and digital worlds. Farley pointed to Target in his speech, noting how the retailer survived by modernizing its e-commerce platform while still using its physical stores as an added value.
Agency Models
While state franchise laws prohibit Ford from eliminating dealerships altogether, it’s hard to imagine the traditional model will survive a full shift to EVs. (And that’s not even considering a reality where future cars drive themselves.)
Besides, in what world would OEMS not enjoy having more ownership of the retail process? Tesla’s proven that fixed pricing can be done – and profitably at that. And while we have our reservations about used e-tailers Carvana and Vroom, they too have made big business of shifting the car-buying experience to digital channels.
Automotive News went so far as to issue a warning in its weekly e-newsletter, cautioning dealers to keep an eye on the increasing number of agency models cropping up in the European market.
“Dealers should be cognizant of changes that significantly impact their business and restrict their independence,” wrote the publication’s Hannah Lutz. She noted that those who adopt the agency model not only hand over control to the automaker and become an “online-order concierge, delivery valet, and eventual service center” but also face potential changes to delivery fees. Meanwhile, those who stay independent could be looking at “allocation punishment.”
While we don’t see dealerships going away anytime soon, we do expect the digital revolution to shake things up. Already, several states are proposing new language that would update dealer franchise legislation to better reflect modern buying behaviors. A few of the topics on the docket include: direct-to-consumer sales, over-the-air updates, vehicle subscription programs, and customer data access.
EV Charging Network Taking Shape
Speaking of electric vehicles… The U.S. Department of Transportation proposed new standards for the National Electric Vehicle Charging Network. The first-ever national network of 500,000 electric vehicle chargers is a key piece of the current administration’s Bipartisan Infrastructure Law.
The proposed standards run the gamut from logistical requirements (standard plugs, minimum uptimes) to equitable expectations (fast-tracking federal investments in disadvantaged communities and hard-to-reach locations). Ultimately, the standards are designed to ensure that an average person can find a reliable, working EV charging station as easily as they can find a gas station.
More Maintenance Needed
“Reliable” will be a key focus moving forward, as a recent study conducted by researchers at the University of California Berkely revealed what frustrated EV owners have been saying on reddit for years now: Many public EV fast-charging stations either do not work or do not work as expected.
In the study, members of the non-profit organization Cool the Earth visited 181 charging stations (excluding Tesla) in the Bay Area and tested 657 individual charging plugs. The results were disheartening.
Researchers deemed more than 27% of the charging stations as “nonfunctioning,” thanks to issues like unresponsive or broken connectors, damaged screens, payment system failures, and network connection issues. Nearly 5% of the chargers were found to be completely unusable because the cables were too short. Study organizers also revisited 10% of the stations 8 days later to see if the problems were addressed. Spoiler alert: they were not.
Of the “functional” chargers tested, only half successfully completed a payment transaction with just one credit card swipe. A California Air Resources Board (CARB) study from February noted similar findings, reporting that “drivers are experiencing non-operable charging stations and payment or membership issues as the main reasons they must contact customer service when at a public station.”
With automakers setting ambitious EV production goals and states matching them with executive orders dictating gas-powered sales, it is imperative that drivers have access to functioning charging stations. (Indeed, a new forecast from Boston Consulting Group estimates 59% of all new vehicles sold worldwide will be BEVs by 2035.) The DOT’s requirements should definitely help with charging standardization in America. Though, the enforcement of these rules will largely determine their success.
Did you know…?
California’s longstanding battle to set its own emissions standards still rages on. With a new administration guiding the EPA, the Golden State saw its Clean Air Act waiver reinstated after President Trump revoked it in 2019. However, now California faces a lawsuit filed by Republican attorneys general from 17 states. They allege the waiver violates the U.S. Constitution’s equal sovereignty doctrine. As a result, five automakers have expressed their support for the state: Ford, BMW, Honda, Volkswagen, and Volvo.
Magna Illuminates New Lighting Tech
Last week, automotive supplier Magna pulled the covers off some seriously impressive new lighting technology. The new hardware – named “Breakthrough Lighting” – integrates into thermoplastic material, such as vehicle body panels, and remains invisible until illuminated. The demonstration video below shows the technology “hiding” brake lights, turn signals, and backup lights.
While it might seem slightly gimmicky at first glance, the possibilities for the technology are quite impressive when you consider the current trajectory of vehicle use. As Newsweek points out, the lighting solution can be used communicatively to light up the word “autonomous” on future self-driving cars, or it can be used functionally to alert an owner that the doors are unlocked or the charge is low. And, of course, “it can also be used for decoration and differentiation … with different patterns, colors and shapes.”
According to Magna, Breakthrough Lighting should be ready as early as next year.
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. Check back Friday as we unpack ADAS – how it all started, where it’s all headed, and how it will affect your ability to modify.
