Auto Industry News: October Auctions Serve Up Hot Collector Cars, Automakers Tally Yo-Yoing Q3 Sales, and Gas Prices Prepare to Spike (Again)

Lots of numbers flitting around the industry this past week. Automaker’s Q3 sales tallies are in, and the results map out like the dramatic rise and fall of an erratic heart rate. We’ve condensed things down to brief highlights, so you know which of your favorite brands is hurting and which is holding on tight. As for the collector car market, sales remain hot, hot, hot. Auction houses are taking full advantage of the strong demand, serving up some really exciting vehicles in the month of October – check out a few featured lots below. Plus, find out what’s happening in the world of automotive tech and why those gas prices are about to start hurting again.

But first, some interesting news in the world of Formula 1.

Surprise! Max Verstappen, World Champ

It’s not often a racer crosses the finish line and is unsure whether or not he’s the champ. This past weekend’s Japanese Grand Prix left Red Bull driver Max Verstappen in such a predicament.

While the Dutch driver knew he had won the race – by a wide margin – there was still question over whether or not he had also managed to snag the championship title.

Heavy rains caused several drivers to hydroplane out of control this past Sunday, leading officials to red flag the Japanese Grand Prix. The race resumed after about two hours, but was shortened upon restart. This led to some confusion in the paddock as to how many points would be awarded for victory.

Even after learning that his title challenger, Ferrari’s Charles Leclerc, incurred a five-second time penalty that took him down to third place, Verstappen could still be heard asking “Am I the world champion?”

Turned out, he was.

Despite racers completing only 29 of the 53 scheduled laps, the FIA decided full points were in order since the race was, in fact, finished. Leclerc’s error in the final lap sealed the deal, christening 25-year-old Verstappen as Formula One World Champion with four races still left to go in the season.

This is Verstappen’s second world title in as many years, and his 12th win of the season. With the U.S., Mexico, Brazil and Abu Dhabi Grand Prix left on the schedule, he has a chance to break the record for most wins in a season. A joint record currently held by Michael Schumacher and Sebastian Vettel at 13 races.

Collector Car Market Update

As we’ve covered previously, the collector car market continues to burn bright despite economic uncertainty. High rollers in Monterey pushed the annual event’s total sales to new record-setting heights. But even among those with actual budgets, auction houses are seeing record attendance, sell-through rates, and hammer prices.

Mecum’s recent Dallas Auction raked in $55.2 million in sales – a 50% increase over the auction’s previous record total of $36.8 million. Additionally, the number of consignments increased by 45% over last year’s event, and ticket sales saw a 60% increase.

While there has been concern the market may be toying with hyper-appreciation, collector car insurer Hagerty notes that most vehicles are still selling above their insured rates and buyer demand remains high. As a result, the company deems the market remarkably steady.

Cool Cars Set For Upcoming Auctions

Several big-name auctions (and more than a few little ones) have yet to wrap for 2022. Here are a few exciting rides set to cross the block this month.

Mecum hits Chicago Oct. 13-15 with an estimated 1,000 vehicles for auction. Among the featured lots is this factory 1970 Dodge Challenger Convertible. Restored as a Hemi Challenger R/T convertible replica, it wears a 426 Hemi V-8 engine, 4-speed manual transmission, power steering and brakes, and stunning Plum Crazy paint job.

Barrett-Jackson descends on Houston Oct. 20-22, promising a diverse selection of stunning custom and resto-mod builds. Leading the pack is this silver-blue 1967 Chevrolet Corvette custom convertible from renowned builder Jeff Hayes. Powered by a new GM LS3 V-8 engine rated at 540 hp and backed by a 4L70E automatic transmission, the Corvette rides on a new Art Morrison sport chassis with 4-wheel Wilwood disc brakes as well as custom Schott wheels and custom whitewall tires.

Broad Arrow Auctions, recently acquired by Hagerty, has a single owner offering auction taking place Oct. 14-15. Among the impressive collection is a 1955 Jaguar D-Type expected to sell for $9-$10 million. Despite a weekend racing career, the Jag is in impeccable condition with a mere 21,584 miles on the odometer and its original engine under the hood.

RM Sotheby’s has an international auction planned for Oct. 28-29, featuring 40 cars and a variety of memorabilia from Carl Haas and Paul Newman’s fruitful collaboration. A number of legendary vehicles are included in the collection, including the 1993 Lola that secured Nigel Mansell back-to-back F1 and Indy titles.

Who says the big guys have all the fun?

Import 1 Motorsport in Pipersville, PA is selling Tony Soprano’s Cadillac Escalade. While no auction is set to occur, the 2003 V-8-powered SUV, complete with multiple autographs from actor James Gandolfini, can be yours for a cool $175,000.

Gas Prices Set to Spike Again

Gird your loins, gas prices are about to soar – again.

Last week, the world’s major oil exporters (OPEC+) announced plans to dramatically cut oil production by 2 million barrels per day in order to boost prices. While the slash in output does not take effect until November, the market is already responding in the cartel’s favor.

The price of oil crested $90 a barrel for the first time in several weeks, bringing gas prices up with it. AAA puts the national average pump price for a gallon of gas at $3.91, up 12 cents over the past week.

OPEC’s move drew ire in Washington D.C.

The White House called the decision “shortsighted” and said it is exploring a variety of response options, even hinting at potential policy that could limit the Saudi Arabia-led group’s control on pricing.

That policy would most likely be NOPEC, or No Oil Producing and Exporting Cartels. Versions of the bipartisan legislation have been around for decades, with a recent iteration passing a Senate panel in May. NOPEC would empower the Justice Department to file antitrust lawsuits against OPEC+ members for price fixing.

While such a bill may win favor with angry consumers and those lawmakers eager for a hard-hitting response, analysts warn of the potentially dangerous consequences. Limiting investments in U.S. interests, raising prices on U.S. oil, and flooding the market to hurt U.S. drillers are but a few of the cartel’s options for retaliation.

As Congress deliberates action, American motorists should expect to see a return of gas prices above $4/gallon.

Automakers Q3 Sales Results – Highlights

Q3 2022 automaker sales totals are in, and the rollercoaster results show a direct link to the current product pipeline’s flow rate.

On the domestic front…

Parts shortages hit Ford hard in September, causing U.S. light-vehicle sales to drop 9%. The automaker saw nearly 45,000 vehicles delayed shipment late last month due to supply issues around a small-but-important component: those blue-oval badges.

Despite its struggles, Ford still managed to pull ahead in Q3 and post a 16% increase in light-vehicle sales.

The opposite was true at GM, which enjoyed a 25% year-over-year Q3 sales gain largely thanks to improved microchip supplies. Every brand saw double-digit gains save for Buick, which fell 27%.

A double-digit decline at Jeep (-18%) pushed parent-company Stellantis down 6.4% for Q3. Like Ford, the automaker blamed a constipated supply chain.

However, both the Dodge Charger and Challenger jumped – up 25% and 17% respectively. In fact, the Challenger’s sales spike was enough to propel it ahead of the Ford Mustang. Dodge outsold Ford, 16,412 to 10,354. The bump in interest is almost surely due to the automaker’s planned discontinuance of both muscle car models in 2023.

Tesla delivered over 343,000 vehicles (a new record), but less than predicted and short of the automaker’s 365,923 vehicles produced. At EV start-up Rivian, production is getting back on track. The new automaker delivered 6,584 out of 7,363 vehicles produced in Q3, reaffirmed its 25k vehicle target for the year, and saw its shares jump 8.8%.

As for imports…

Toyota finally caught a break, recording its first U.S. sales increase since last summer (up 17% in September).

The automaker seemed larger than life in 2021 when it dethroned GM’s 90-year rule as sales champ. Unfortunately, supply chain disruptions have rocked Toyota’s manufacturing and distribution efforts to a degree unseen since the 2011 Tōhoku earthquake and tsunami. Collective sales in the U.S. are over 15% lower than last year.

Tight dealer inventory at fellow Japanese brand Nissan caused U.S. sales to tumble a painful 23% in Q3. Subaru, down slightly on the quarter, celebrated an 8.6% increase in September sales and the best month ever for its Crosstrek. The model’s sales were up 36%.

Poor Honda is not just riding the struggle bus, but actually driving it. Sales decreased for the 14th month in a row, down 17% in September. Adding insult to injury, the automaker also saw its Q3 sales drop a whopping 36%.

Sales at sister brands Hyundai and Kia increased for the month, with the latter seeing its best-ever September on record. Both made modest gains on the quarter too.

As for our friends across the Atlantic, Volkswagen of America said its Q3 sales rose 12% while Audi jumped an impressive 20%. Volvo fared poorly, with sales falling 29% for the 13th straight month of declines.

What In the World (Of Tech)?

Technology moves at warp speed, even in the auto industry. Here are some developments you may have missed last week.

EV Advancements

CEO Elon Musk announced via tweet last week that the Tesla electric semi-truck is officially in production, with first deliveries going to Pepsi on Dec. 1. Details on battery pack size are unavailable, but Musk noted the truck would have a 500-mile range and be “super fun to drive.”

The automaker is also set to remove ultrasonic parking sensors from its vehicles starting this month. The move is part of Tesla’s plan to rely solely on cameras to provide safety and driver-assistant features. Last year, the EV maker dropped all radar sensors from its lineup in a controversial decision that has drawn the attention of NHTSA officials. Many Tesla owners believe the recent spate of “phantom breaking” is a result of over-reliance on cameras to read potential obstacles.

Swedish EV maker and Volvo subsidiary, Polestar, is set to premiere its first electric SUV this week in Copenhagen. The Polestar 3 features a rear-biased dual motor drivetrain with large battery targeting over 372 miles of range, and comes standard with a dual-clutch torque vectoring system and adaptive air suspension. An optional Performance Pack will push out 510 horsepower and 671 pound-feet of torque, and sprinkle in some luxury details like gold seat belts. Pricing isn’t firm yet, but will fall somewhere between $75,000-$110,000.

AV Misgivings

According to a new J.D. Power study, the general motoring public is not ready for self-driving vehicles. More specifically, the research indicates “consumer understanding of automated vehicles remains virtually unchanged from a year ago” – which is to say, it is alarmingly low.

The study found that 65% of consumers inaccurately define fully automated, self-driving vehicles. Additionally, 56% incorrectly classified current driver assist features on the market (like lane-keep assist or automatic emergency braking) as fully-automated technologies, revealing a major knowledge gap around AVs.

The study indicates that, despite advancements in capability and application, autonomous technology’s stakeholders have put little effort into educating consumers.

Misconception breeds misgiving. J.D. Power found that even those respondents who are okay with the idea of full self-driving cars still expressed “a lack of trust and confidence in the technology regarding their personal safety.” As a result, they showed greater comfort with the autonomous transport of goods rather than humans.

And even with actual self-driving taxis hitting the streets in the past year, the study noted that respondents did not show any increased comfort with the technology. In fact, for the second year in a row, 41% of respondents said the highest level of automation they are comfortable with is the kind of Level 2 ADAS tech already available on the market.

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 for a primer on oil treatments.