Auto Industry News: Microchip Supply in Demand, Toyota Outsells GM, CES 2022 Wraps Up, and Mecum Kicks Off In Kissimmee

We’re barely two weeks into the new year, and there’s already a lot going on in multiple corners of the industry. Analysts suggest that microchip challenges could continue through 2024, with some automakers already adjusting sales targets in response. Meanwhile, Toyota roared into 2022 with a new carbon-fiber Supra – and sales numbers to topple GM’s 90-year legacy. Mecum is enjoying high-dollar results too, riding 2021’s momentum into the new year with its big and buzzy Kissimmee auction. The massive event runs until Jan. 16 with everything from classic Thunderbirds and Chevelles to Ferraris and McLarens.

But first, CES 2022 wrapped up last week with plenty of innovations in automotive technology. Chief among them? An exciting reveal from Chevy…

CES 2022 Hosts Exciting Show Despite Challenges

The Consumer Electronics Show (CES), the biggest tech-oriented U.S. tradeshow of the year, wrapped up last week with a slightly more muted vibe, thanks in large part to ongoing COVID challenges. Originally scheduled to run Jan. 5-8, organizers actually ended the show a day early. Additionally, big names like Amazon and T-Mobile pulled out of in-person presentations at the show less than two weeks before kick-off.

The automotive world saw its share of cancellations, too. One of the most significant announcements came from GM, which scrapped in-person plans, despite its CEO Mary Barra due to provide the keynote address. The automaker opted for a virtual presentation instead, and still managed to unveil its all-new 2024 Chevy Silverado EV.

Initially, GM plans to offer two versions of the electric pickup: an RST First Edition and a WT fleet model. The RST boasts four-wheel steering, automatic adaptive air suspension, and a multi-flex midgate that expands the truck’s cargo capability and maintains seating for a rear-row passenger. As with most new EVs, the truck also comes with a big 17-inch infotainment screen, paired with an 11-inch driver instrument display. GM also equipped the RST with trailering-capable Super Cruise5. This driver-assistance technology lets drivers travel hands-free on more than 200,000 miles of compatible roads across North America.

The WT, meanwhile, comes with 510 hp and 615 lb-ft of torque and offers 8,000 pounds of towing and 1,200 pounds of payload. After its initial launch, the automaker plans to introduce a fleet version of the Silverado with a beefed-up 20,000 pounds max trailering in a max tow package. Even with its impressive performance specs, it’s hard to say if the Silverado is a daily driver or work truck at its current cost. As of the show, the new Silverado wore a hefty $105,000 price tag.

Future of Cars – and Car Shows

CES 2022 also played host to a bevy of concept cars. Big names showed up, like BMW, which touted its battery-powered ix M60. Also present was Cadillac with its InnerSpace Concept, a futuristic luxury car with AV technology, as well as Hyundai, which brought an autonomous pod to the show. (Yes, you read that right.)

Arguably one of the most anticipated unveilings at the show next to the Silverado was the Jeep Grand Cherokee 4xe. The plug-in hybrid addition to Jeep’s lineup comes loaded with 375 horsepower and up to 21 miles of ultra-quiet, zero-emission, electric-only propulsion. There’s also a 2.0-liter four-cylinder engine, two electric motors, and a TorqueFlite eight-speed automatic transmission, which together offer an estimated 50 MPGe. With all those features combined, Jeep’s pitching the 4xe as a dual-purpose vehicle that can handle the daily commute without range anxiety but still hit the trails with plenty of muscle for rocks and ridges.

Still think CES is just a show for new gadgets? Think again. As CNET Roadshow wisely points out, “the line between automotive and consumer tech gets blurrier every day … [and] what you see here isn’t just science fiction; many of the innovations may arrive at dealerships before you know it.”

Waning Chip Supplies Could Drag on Through 2024

Tradeshows continue to be a bit of a mixed bag, much like the ongoing debacle of improving microchip supplies. In a recent report by Automotive News, analysts suggest the shortage will continue to cause headaches for dealers and manufacturers well into 2022, even as production recovers. Even with an expected boost in light-vehicle sales for the year, the total will still reportedly sit below pre-pandemic levels. Those lower numbers mean the auto industry has a long road ahead to recovery.

Tyson Jominy, vice president of data and analytics at J.D. Power, told Automotive News the shortage is like the Great Recession, which also had years of fallout in its wake. The biggest difference, Jominy said, is that the current demand is stronger “by several magnitudes” compared to the 2010-2013 economic downturn. New vehicles are still selling out before they hit dealership lots thanks to reservations, he said, creating a “one in, one out” pattern. So, dealers will still have to ride out the wave until manufacturers can start ramping up supply relative to how many chips they can source.

Automakers Adjust With New Goals

With sales expected to climb in 2022 but still sitting below previous years’ records, some automakers seem to be taking notice with sales goals and projections for the year ahead. One prime example is the numbers released by Hyundai and its affiliate KIA on Jan. 3. The automaker said it targeted global sales of 7.47 million vehicles for 2022. Alongside that number, the automaker said it would “adjust vehicle production schedules, strengthen electric vehicle lineups,” and optimize “sales profit and loss by region.”

In short, it sounds like the automaker is readjusting its goals to be more realistic in the face of ongoing shortages. Hyundai and KIA sold 6.67 million vehicles in 2021, almost 4% less than its original target of 6.92 million vehicles. And in Oct. 2021, Hyundai Motor slashed its global sales target by roughly 4%, to 4 million vehicles from 4.16 million vehicles.

While we hate to utter the overused phrase “new normal,” readjusted sales numbers might roll out more across the auto industry as 2022 carries on. In a Dec. 2021 report, Wards Auto said automakers might be waiting until 2024 or even 2025 before things return to a normal rhythm with chip production. That means, the sales numbers that dealers and manufacturers typically aim for might simply be out of reach. Lowering those targets across the board makes more sense for the entire industry.

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Toyota Outsells GM in 2021, Breaking a 90-Year Stride

Waning chip supplies and manufacturing headaches aside, Toyota rolled into 2022 looking stronger than ever. The automaker outsold GM in 2021, achieving two significant milestones. This is the first time since 1931 that GM hasn’t held the top spot, and it’s the first time a non-domestic manufacturer nabbed the crown in the U.S.

GM sold a reported 2.2 million vehicles in the U.S. in 2021, nearly a 13% dip from the previous year. Toyota, meanwhile, sold 2.3 million vehicles, a 10.4% jump compared to 2020. The difference in sales between the two companies was around 114,000 vehicles. Some of Toyota’s big sellers for the year were from its staple herd—the RAV4, the Camry, and the Tacoma pickup.

Interestingly, being #1 doesn’t necessarily seem to be the end goal for Toyota. Instead, the automaker is putting more focus on rolling out new models. In a call with reporters, Jack Hollis, Toyota Motor North America’s senior vice president of Automotive Operations Group, admitted surpassing GM and taking top honors is likely not a “sustainable” endeavor.

Hollis instead pointed to Toyota’s plans to introduce 21 all-new “refreshed or special-edition” vehicles this year. Some analysts already project GM to regain its momentum in 2022 and reclaim its long-held number-one spot. However, it’s still too early to tell.

Toyota Unveils 2022 GR Supra A91-Carbon Fiber Edition

A significant sales milestone wasn’t the only exciting news from Toyota last week. While the automaker might be stepping up its EV efforts, it is still carving out a comfortable spot for combustible engine fans.

The manufacturer recently announced a special edition A91-Carbon Fiber (CF) to the 2022 GR Supra lineup. The A91-CF is limited to only 600 units, and sports rockers, a front splitter, rear spoiler, and lower canards all built with carbon fiber. According to Toyota, these upgrades improve the sleek car’s downforce at higher speeds. Based on the 2022 Supra 3.0 Premium trim, the A91-CF comes with 19-inch forged aluminum twin-spoke wheels and sharp-looking Black/Red Alcantara 156-trimmed/leather-trimmed sport seats complete with red stitching.

According to Toyota, the A91-CF Edition flexes its muscles with a 382 horsepower turbocharged 3.0-liter inline-six that goes from zero to sixty in just 3.9 seconds. Also available is an “intermediate model” boasting a 2.0-liter turbo I4 engine delivering 255 hp and 295 lb-ft of torque, launching to 60 mph in just 5 seconds. Both options feature an eight-speed Z-F8 transmission with paddle shifters.

Still ICE on the Menu

Toyota is also investing in fans of the Supra lineup by offering owners a free one-year membership to the National Auto Sport Association (NASA). With the membership, drivers get discounted admission to NASA events and a free class with NASA’s high-performance driving school on a closed course. The A91-CF comes in at a hefty $63,280 MSRP, while the base trim, the 2022 Supra 2.0, starts at $43,190.

The 2022 Toyota Supra line shows that there’s still a healthy appetite for performance vehicles with ICE engines, even as automakers vie for the top spot in hybrid and electric cars. Other sportscar namesakes, like Dodge, have been gradually phasing out ICE engines on lauded models as they make way for electrification. In November 2021, Dodge CEO Tim Kuniskis said the automaker was ending Dodge Hellcat models after 2023 because environmental regulations were making it too expensive to continue production. Kuniskis said the company would be bringing electrified muscle cars to market instead.

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Mecum Kissimmee 2022 Kicks Off Strong

Other echoes across the industry show continued excitement for combustion engines, too. Kicking off Jan. 6, Mecum Kissimmee 2022 opened to excited attendees ready to take part in the world’s largest collector car auction. This is the 17th annual edition of the auction, boasting more than 3,500 vehicles, more than 1,000 road art and memorabilia items, and spanning almost two weeks. (The event ends on Jan. 16.)

Some of the big highlights include The Jackie and Gary Runyon Collection, which features 33 no-reserve vehicles, including a 1967 Chevrolet Corvette Coupe (pictured) that had an original owner until 2017 and only 8,553 miles on the odometer. The collection also features multiple Tommy Ivo drag cars, and a companion 40-foot glass-sided trailer, as well as a 2016 Pagani Huayra (one of only 100 produced) with 725 miles, and a 2017 Ferrari 488 Spyder with 611 miles.

There is a bevy of supercars at the auction, including an impressive lineup from collector Michael Fux. Fux consigned six low-mileage cars to the auction, including No. 100 of 106 2020 McLaren Speedtail (pictured), a 2021 Ferrari SF90 Stradale, and a pair of Mercedes-Benzes: a 2018 AMG GT R and a 2020 GT R.

Meanwhile, the Don Salmon Collection gives attendees a look at 62 muscle cars spanning late models and classics. The lineup includes iconic rides like Corvettes, Thunderbirds, Impalas, Chevelles, and Mustangs.

Market on Fire

Mecum had a strong 2021, with $578 million in sales and a 90% overall sell-through rate. That’s the highest annual total ever achieved by a U.S.-based car auction company and, according to Mecum, the highest total achieved in the industry for the year.

There’s hope that 2022 will also turn out to be a strong year for the company. In a Jan. 7 interview with Yahoo! Finance, Mecum Auctions CEO Dave Magers talked about the enthusiasm for classic cars in the ever-growing tech-oriented world. He pointed to shortages, and how delivery delays of newer cars continue to drive up the price of used vehicles, which also bumped up prices on the auction block.

Eager to learn more about the collector car auction scene? Click here! We sat down with Mecum’s own John Kraman to unpack what’s fueling the record-smashing results and why enthusiasts seem more determined than ever to bottle the past.

This week the event kicks off with the Road Art auction at 9 a.m. EST on Monday and several auto auctions running Tues. Jan. 11 through Sunday, Jan. 16. See the full schedule here.

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. Tune in Friday for a Q&A with Fabtech on 2022’s leading trends.