Auto Industry News: NY Auto Show Canceled, Sedan Models Axed, Infrastructure Bill Advanced, and Some VERY Exciting Acquisition News

It’s a slightly sour week for the auto industry, with news of the 2021 New York Auto Show’s cancelation. Joining the event on the proverbial chopping block are two long-standing sedan models: the VW Passat and Toyota Avalon. As automakers shift to EVs, expect to see more of these traditional vehicles waving sadly from the sidelines. And speaking of EVs, the Infrastructure Bill made some progress last week… just as some distressing news broke about battery shortages.

Thankfully, it’s not all bad news! Scroll down for updates on two very exciting acquisitions sure to shore up classic car culture and off-road enthusiasm.

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2021 New York International Auto Show Canceled

Initially scheduled for Aug. 20-Aug. 29 at its usual venue, the Javits Center, the 2021 New York International Auto Show was canceled last week. The massive spot – recently expanded by a staggering 1.2 million square feet – would generally allow for ample social distancing under previous CDC guidelines. However, organizers said they decided to cancel amid growing concerns over the uptick in Delta cases and recent measures implemented by New York City and New York state officials.

Early last week, New York Mayor Bill Di Blasio imposed new restrictions for indoor businesses like restaurants, gyms, and movie theatres. The mandate, which goes into effect on Aug. 16, requires patrons to provide proof of vaccination for entry. The contentious decision is bound to cause some upcoming headaches at small businesses in the city, so it’s not surprising a massive convention center would opt to avoid the logistical burden of enforcing the rule upon thousands of attendees.

Unfortunately for those attendees – and automakers – multiple new vehicle debuts were planned for the show, including the 2022 Subaru WRX, next-generation Nissan Z sports car, and 2022 Jeep Grand Cherokee 4xe hybrid. According to Car and Driver, Nissan will still debut its new Z on Aug. 17, while Subaru plans to unveil the WRX on Aug. 19 – both as live virtual events. Whether an off-site, in-person reveal will happen as well is unconfirmed.

Response to the show’s cancelation has been a mix of disappointment and frustration, with plenty of feedback on the show’s Facebook page. Many would-be attendees are venting over residual expenses like travel and lodging. The organization said it will be refunding ticket sales over the next few days.

Despite the deflating news, NYIAS said it still plans to return to its regular spring schedule in April 2022. (Here’s hoping!)

Sedans Also See the Cut

Also catching cancelations are two well-known sedan models: the VW Passat and Toyota Avalon. Both manufacturers said the two cars will end production in model year 2022.

For the Avalon, Toyota originally planned to give the model a refresh in the second half of next year but reversed that decision with an Aug. 2 announcement. It marks a long run for the Avalon, Toyota’s flagship full-sized sedan starting in 1994. The Japanese automaker said it would continue to offer parts and service support for drivers.

Despite the discontinuation, Toyota told customers it remains “committed to the sedan segment” and asked them to “stay tuned” for future developments. What that means, we’re not sure yet, but the company did stress that production capacity and employment at its Kentucky plant wouldn’t be affected by the Avalon’s end.

Meanwhile, Volkswagen said late last month that it’s ending assembly of the Passat sedan in Chattanooga, Tennessee by 2022. The decision comes as part of the automaker’s buzzy transition to electric vehicles.

As the Passat’s production hub since 2011, the Tennessee city will serve as inspiration for VW’s upcoming limited-edition Passat. The short run will mark the model’s passing and will sport “Chattanooga-inspired details.”

What exactly is Chattanooga-inspired? Well, according to some helpful photos from CNET Road Show, the Southern design language features intricate touches like seat tags marked “Chattanooga 2011” and cup holders etched with an aerial map of the city. VW is also capping production of the limited-edition Passat at 1,973, referencing the year the car launched in Germany – 1973.

A Dwindling Segment

Automakers pulling these two models out of production means sedan options are dwindling. After the Avalon goes away, U.S. drivers only have three full-size choice left: the Dodge Charger, Chrysler 300, and Nissan Maxima. Those itching for a Toyota sedan can still grab the Camry, but that requires stepping down in size.

Automakers have been slowly pulling away from the full-sized sedan for a few years now, shifting to more lucrative models like SUVs, CUVs, and trucks. Ford made an announcement back in 2018, saying it wanted to “feed the healthy parts” of its business, by discontinuing the Fiesta, Fusion, and Taurus models in 2020. FCA announced similar plans the same year, scrapping the Dodge Dart and Chrysler 200 to focus on more profitable Jeep SUVs and Ram pickups.

While it might be frustrating for fans of economy-sized cars, it’s understandable why automakers have shifted this direction. Overall, drivers aren’t flocking to smaller vehicles as they might have in previous decades. A round-up from The New York Times last year found SUVs constituted about 47% of U.S. sales in 2019, while sedans accounted for roughly 21%. Reasons for this disparity range from empty-nesters seeking smaller SUVs that combine comfort and roominess, to millennials wanting larger, distinctly-non-minivan-vehicles for their new growing families.

But that’s not to say sedans are done for!

Several automakers refuse to abandon the segment and a few continue to make a name for themselves. We’re looking at you, Hyundai.

The South Korean brand continues to make refinements on its luxury sedan lines, recently rolling out the sporty 2022 Genesis G80. Competing with nameplates such as the Audi A6, the BMW 5-series, and the Mercedes-Benz E-class, the new sport model boasts a powerful twin-turbo V-6 option under the hood, pumping out 375 horsepower for a refined and relaxed ride. On the full-size end, Genesis’s 2021 G90 sedan flagship model makes the V-6 standard and turns all premium dials up to 11. Neither one might meet the traditional definition of “family-friendly” but they certainly give shoppers something to admire.

For those who want premium touches at everyday prices, Hyundai offers a very glowed-up Sonata. With a lower profile, wider stance, and modern interior, the mid-size sedan serves up excellent styling and decent zip (190 hp) at a modest price tag (under $25k).

The new 2021 Sonata N-Line adds some excitement to the line with a 290-hp 2.5-liter four-cylinder and some 19-inch alloy wheels. The color options truly pop, and Hyundai’s pushing the flashiness of the red model since it’s featured in the movie “Snake Eyes: G.I. Joe Origins.”

We’re a little too old to process how an action figure becomes a vehicle for a movie, then that movie becomes an ad campaign for a car, but hey, whatever works.

Speaking of Joes…

President Biden’s Infrastructure Bill Makes Headway

After some lengthy discussion, U.S. senators unveiled a roughly $1 trillion bipartisan infrastructure plan on Aug. 1, which doesn’t look much different from their goals a few weeks ago. The difference now, is that they need to sell the idea to the American public.

Senators say the plan will tackle goals that vary significantly in each state. Some of those include provisions like broadband internet upgrades in Maine, coastal erosion mitigation in Louisiana, and improved clean water access in remote parts of Alaska.

And while both sides of the aisle seem to be ready to press ahead, there are some sticking points to the bill. Conservatives argue it bumps up government spending too much, tacking onto the massive $5 trillion spent on COVID relief. Sen. Ted Cruz called the bill a “mistake,” saying the American people are looking at a “ticking inflation bomb.”

On the other side, environmental groups argue the bill doesn’t tackle climate change, leaving key issues on the table. Right now, the deal omits both the Clean Electricity Standard and Civilian Climate Corps – two elements of Biden’s climate plan that aimed to replace fossil fuels and create American conservation project jobs, respectively.

The bill also comes with some interesting safety-focused provisions.

Included in the 2,700-page bill is a provision requiring the U.S. Transportation Department to mandate a new passive technology that would prevent intoxicated drivers from starting vehicles. Designed to avoid more than 10,000 deaths annually from DWIs, the legislative move already has the backing of Mothers Against Drunk Driving, the auto insurance industry, and some alcohol trade associations. As of late, though, the technology still needs to be refined for widespread adoption.

It’ll be curious to see how the bill takes shape from here since it still needs to pass through the House. This is where more progressive provisions are expected to be demanded, like the renewable energy adjustments mentioned above and changes to the healthcare system. All told, though, we probably still won’t have a final answer on what the infrastructure bill looks like until the fall.

While the senate sorts out its legislative challenges, the auto industry has another potential headache behind the chip crisis: an EV battery shortage as early as 2025. According to a recent report by Bloomberg, the supply crunch comes amid the rising demand for electric vehicles and new challenges in securing raw materials like lithium, cathode, and copper foil.

Exciting Acquisitions

In lighter news, news of two very exciting acquisitions crossed our desks this past week.

WARN Joins Forces with Fab Fours

First up, WARN Industries announced the acquisition of leading bumper manufacturer, Fab Fours, Inc. Known for its bold and innovative designs, Fab Fours has carved out a name for itself with top-notch craftsmanship. The South Carolina brand also has more than a few vehicle builds under its belt that are over-the-top and downright exhilarating. Worth noting is that the brand also uses its skills for good causes — like the Fab Fours’ Project Goldstar Jeep Gladiator. The tricked-out Jeep was designed to bring attention to American Gold Star Families, which offers counseling, memorials, and scholarships for vets and families of fallen military.

Fab Fours’ commitment to American-based manufacturing and community involvement makes it a sensible partner for WARN. The vehicle-recovery brand has made a point of acquiring companies that are on its wavelength, committing to domestic manufacturing.

“With last year’s acquisition of Factor 55, the recent acquisition of Fabtech, and now Fab Fours, WARN continues its strategy of aligning around premium brands while focusing on operational excellence,” said Kyle Shiminski, Vice President & General Manager of WARN Industries. “We are humbled by our customers’ loyalty and dedication to each of our brands, and we are proud to continue our focus on designing and manufacturing in the United States.”

Greg Higgs, CEO of Fab Fours, said he was equally excited about the development and said that the two companies’ products “complement each other and our talented resources across the businesses do as well.”

“Aligning our businesses will help us all grow stronger together, and we look forward to introducing innovative new products to our customer base,” Higgs added. As part of the agreement, Fab Fours will operate as a division of WARN Industries.

Barrett-Jackson Grows In Collector Car Market

Over on the collector side of the industry, Barrett-Jackson Holdings, the parent company of Barrett-Jackson Auction Company, recently announced it bought up the Collector Car Network and its subsequent properties. The acquisition brings in multiple brands, including ClassicCars.com, the ClassicCars.com journal, AutoHunter.com, and the Future Collector Car Show.

While all major automakers continue pushing for electric and autonomous vehicles, this acquisition looks like another move to preserve classic car culture by consolidating efforts and brands. Classic car insurer Hagerty made similar movies last month, updating one of its annual events and rolling out new initiatives to attract young drivers to the culture.

“We see this acquisition as an enormous growth engine for the collector car marketplace,” said Roger Falcione, president and CEO of Collector Car Network. “Our two companies are perfectly aligned to be the leading resource for car collectors worldwide, including the rising generation of collectors who are evolving the market.”

The combination of all four brand lines from Collector Car Network could prove to be a substantial addition for Barrett-Jackson. The ClassicCars.com site attracts more than 4 million annual visitors, and the journal reaches more than 500,000 monthly readers. As far as in-person numbers, the Future Car Collector Show pulls an estimated 12,000 guests annually.

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 a run-down of what you should look for when winch shopping.