Auto Industry News: NHRA Updates, February Sales Snapshot, Tech Buzz and What Is Going On With These Gas Prices?
The month of March is certainly off to a rocky start, as new vehicle sales flop and gas prices shoot up. Ford is having a particularly rough go – battling recalls, delays, and prematurely rusting F-150s. (Ouch.) However, the Blue Oval might still choose those issues over Stellantis’ most recent tricky situation.
The newly-formed automotive powerhouse is navigating cancel culture, with accusations that it insensitively co-opted the Cherokee name for its immensely popular Jeep 4×4. Amid calls for a name change, royalties, or other creative solutions, the automaker will be climbing a slippery slope to avoid a public dispute.
In brighter news, enthusiast events continue to make a slow comeback. Daytona Bike Week kicked off Friday, with a full schedule of shows and meets – and, yes, coleslaw wrestling is still on the menu. The Sunshine State also hosted the NMRA Spring Break Shootout at Bradenton Motorsports Park this weekend. Launching the 2021 Holley NMRA Ford Nationals, the high-octane event treated fans and spectators to some welcome racing action after the long winter. Click here for a rundown of the victors.
Speaking of go-fast entertainment, the 2021 NHRA season kicks off next weekend – and there a few buzzy storylines to keep an eye on this year.
Checking In With NHRA
For the first time in the racing organization’s 70-year history, the 2021 NHRA season will open at the famed Gainesville Raceway in Florida. Slated March 11-14, the AMALIE Motor Oil NHRA Gatornationals will allow fans to attend, with some obvious COVID-19 restrictions for safety. For a full look at the TV schedule, click here.
Pre-season testing is already underway, as racers look to shake off the rust from 2020.
Here are some players to keep an eye on this year…
John Force, the 71-year-old 16-time Funny Car champ, is back for another run. Despite announcing he and his team would be pulling out of the 2020 season due to COVID-related complications, the racing legend returns for 2021 down 25 pounds, fully vaccinated, and insisting: “I got years left in me.”
He will be joined by his daughter Brittany Force and teammate Robert Hight.
With a boost of confidence after a fantastic bounce-back in 2020, Antron Brown is another racer to watch this season. After dismal 2018 and 2019 seasons, Brown found his footing last year and collected the Top Fuel win, upsetting freshly recrowned three-time world champ Steve Torrence in the final round.
“It shows you what you’re made of,” Brown said of recouping a bad season. “There’s no doubt we’re ready to go and get after it.”
Stand-out rookie, Justin Ashley, promises to bring some excitement to Top Fuel as well. With a new crew chief, fresh sponsors, and something to prove, NHRA considers him a top performer in the class on the starting line.
Torque Boost
On top of kicking off the season, the NHRA says it also has its eyes on the future – the electric future. The Detriot Bureau reports fans can expect to see an “expansion of electronic vehicle racing,” per the organization.
With electric race series like Formula A and high-performance drag racers like the Ford Mustang Cobra Jet already dazzling spectators, this is a logical next step for the NHRA. While they might not make the ground tremble like a classic funny car, electric dragsters soon could become a common sight.
Watch Steve Huff of Huff Motorsports break “Big Daddy” Don Garlits’ record-setting electric drag race run with a speed of 201.07 miles-per-hour in the quarter-mile, over an elapsed time of 7.52 seconds.
Speaking of future innovations, Michelin launched its first tire designed to address the specific demands made by electric sports cars. Launching April 1, the new tire is the result of the unique experience acquired by Michelin in Formula E racing.
New Vehicle Sales Off in February
It seems February has a little something to say about the auto industry’s slow and steady climb towards recovery. According to The Detroit News, U.S. auto sales took a serious dip this past month, falling 2.8% from the same month last year. New vehicle sales failed to meet projections, marking the worst month in terms of sales in the last 18 months.
While some automakers showed mild increases, including Subaru, Hyundai, Jaguar Land Rover, and BMW, “losses dominated the narrative,” says the publication, with even the seemingly untouchable sport-utility category faltering.
Automakers cited fewer selling days, supply shortages, and winter weather as contributing to poor sales. Principal automotive analyst at IHS Markit, Stephanie Brinley, says smaller tax returns as well as higher car prices and interest rates are also to blame.
Despite disruptions, analysts are optimistic, insisting retail sales demand remains strong and low sales won’t necessarily translate to low profits. However, they do caution that the current microchip shortage will continue to affect production, tightening inventory and dropping incentives for shoppers.
Ford Feels the Heat
While the last month was tough for most automakers, Ford’s sales dropped a painful 14% in February. Worse, the Blue Oval has been battling a string of corporate headaches:
… Several Ford F-150 owners are reporting their new 2021 pickups are arriving with rusted underbody parts. The automaker is firm in its stance that the rust will not impact performance or part life (which is a little hard to believe because yanno, science). Owners are still rightfully ticked off to see their brand new off-the-lot truck already battling signs of corrosion.
… The Mach E rollout continues to face derailing delays. Ford blames “additional quality checks” for the long wait times and has begun compensating its earliest buyers in apology. Such perks include an extra 250 kilowatt-hours of free charging for some 4,500 Mach-E buyers, as well as a free first month of payment up to $1,000 for those experiencing more than one delay.
… Piling on the pain, Ford was forced to recall 80,000 F-150 and Super Duty trucks because the front windshields could pop out during a crash due to improper bonding. Another recall, affecting a limited number of 2020 Super Duty trucks with 6.7L Power Stroke diesel engines, concerns incorrect payload-capacity values.
It’s fair to say that Ford will be looking to rebound this month.
Speaking of recalls… NHTSA is investigating complaints of engine fires in nearly 1.9 million Toyota RAV4 SUVs after 11 fire complaints – four of which occurred when the engine was off. Read more here.
Gas Prices Skyrocket
If you pumped any gas recently, seeing that final total likely felt like a gut punch. According to AAA and GasBuddy.com, motorists are paying some of the highest gas prices seen in over a year. Federal data supports this, showing as much as 45% of the increase has come within the last ten months.
Analysts cite two main reasons for the jump: bad weather and good old supply and demand. However, many frustrated Americans are pointing to the current administration, citing the Keystone XL Pipeline shutdown and anti-oil policies as contributing factors.
Let’s break down both sides.
The most recent price increases are “a direct result of February’s winter storm that took 26 U.S. refineries offline and pushed refinery utilization from an average of about 83% down to an atypical low of 68%,” reports AAA, citing the Energy Information Administration (EIA).
Patrick De Haan, head of petroleum analysis for GasBuddy, agrees. He predicts price increases to slow over the coming weeks as the cold weather wanes and “refineries get back online in short order.”
As vaccine roll-outs pick up speed and COVID restrictions ease, oil demand is bouncing back. Supply has been slow to catch up, says the New York Fed, driving up prices as a result.
According to Former Shell Oil President John Hofmeister, however, the issue is more complex. In addition to weather-related shutdowns putting a “squeeze” on supply, “industry producers are practicing serious capital discipline and they’re not roaring back to produce more oil,” he told Fox Business in an interview last week. “The prohibition on new leases from the Biden administration – that’s going to create a psychology in the industry of ‘there’s going to be less available,’ and the psychology drives the pricing.”
The good news is impacted refineries are getting back to work, so at least the giant spikes should subside, says AAA. However you should expect higher gas prices to stick around, especially as “refineries start to transition to summer gasoline,” cautions De Haan.
Tech Buzz
We’ve covered some complicated, dense subject matter this week – so let’s wrap it up with exciting new vehicle details?
2022 Jeep Wagoneer, Grand Wagoneer Will Offer TV Streaming
Can you imagine something plusher and more relaxing than watching your favorite TV show from the comfort of your car? Well, the new 2022 Jeep Wagoneer and Grand Wagoneer are set to be streaming ready.
According to Car and Driver, Jeep’s newest offering will feature entertainment systems loaded with Hulu, Netflix, YouTube, Prime Video, Twitch, and Amazon Fire TV for Auto. That means you and your passengers will be able to utilize the SUVs seatback screens and front-seat passenger screens to watch content during even the longest road trips.
Now to figure out safe viewing while driving. Sigh. One step at a time, right?
The new three-row luxury SUVs from Jeep, previewed by a concept vehicle, will be shown in production form on March 11. Final models will hit dealerships in mid-2021.
Say whaaaat? Volvo plans to go all-electric by 2030 and switch to a totally online sales model. Read more about the controversial strategy at Green Car Reports.
Honda To Offer Level 3 Self-Driving Capability in Japan
Speaking of futuristic technology and new cars, Honda recently announced a major push forward for autonomous vehicles. The Japanese automaker will release a limited run of its Legend series sedans equipped with Level 3 self-driving tech. Called Honda Sensing Elite, it is an upgrade to the pre-existing Honda Sense driving aids.
Hands-free driving, steering, acceleration, stopping, and even lane changing without driver interaction are all on the menu. The most impressive feature, however, is the Traffic Jam Pilot, a feature that enables the vehicle to handle anything from stop-and-go traffic to open highway cruising.
According to CNET, “Just 100 examples will be made available, and you won’t be able to buy one; the automaker is only leasing them.”
Now they just need a way to let people have access to their streaming services and it will be perfect!
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 Friday when we unpack some exciting products from Addictive Desert Designs that are sure to boost your off-road and overlanding games.
