Auto Industry News: RPM Act Revs Up Support, Electric F-150 Dazzles Ford Fans, SEC Slaps Back SPACs, and Pope Gets a New Whip
Despite major delays in global vehicle production, the debuts keep on coming. Toyota teased a few new rides this week, though they were largely drowned out by Ford’s unveiling of the all-new electric F-150. Dubbed “Lightning,” it certainly garnered an electrifying response – nabbing 20,000 reservations in only two hours.
Speaking of EVs, start-up Canoo finds itself under SEC scrutiny. The company is the latest in a long line of SPAC-backed automakers being investigated for potentially misleading investors through blank-check mergers. All that funny money pays off apparently though, as fellow SPAC-funded EV startup Fisker just got the green light to develop the first all-electric papal transport for Pope Francis.
But first, some important legislation is up on the docket and it regards your right to race!
RPM Act Re-Introduced in U.S. House of Representatives
Last week, the Recognizing the Protection of Motorsports (RPM) Act was re-introduced to the U.S. House of Representatives by Congressmen Patrick McHenry (R-NC) and Raul Ruiz (D-CA), along with 46 other original sponsors. The SEMA-supported, bipartisan bill aims to protect Americans’ right to convert street vehicles, as well as the specialty equipment industry’s ability to sell the products that allow these racers to compete.
Why is the RPM Act important to enthusiasts?
The issue dates back to 2015, when the EPA ‘reinterpreted’ the Clean Air Act of 1970. The agency stated that racecar conversions must remain emissions-compliant – even if the vehicle never drives on public roadways. That means, any modification or removal of an emissions system would render the vehicle illegal and subject to severe penalties. Seeing as many racecars begin their lives as street vehicles, this could have a devastating effect on the motorsports community – not to mention the small businesses that supply necessary parts and service.
While the ruling was taken out of the 629-page proposal that it was quietly tucked into, the EPA maintains it has enforcement authority over the matter.
Hasn’t this been on the docket before?
Yes. In 2016, SEMA first introduced the RPM Act, hoping to establish some legal clarity. After finding support in both the House and the Senate, the bill went to the Energy and Commerce Subcommittee on Environment and Climate Change. The outlook seemed positive but unfortunately, the shortened election year schedule meant there wasn’t enough time for the bill to pass.
Now, thanks to more than 1.1 million letters of support, the RPM Act is back on track for the 2021-2022 session of Congress. SEMA says passage is a “top federal legislative priority” and the organization is working with supporters to “officially reintroduce the bill in a way that maximizes its chances of becoming law.”
One such way is to include the RPM Act in the highway bill, which must become law before the current authorization expires on September 31, 2021.
How can I help?
To keep up the momentum, it is important that racing and auto enthusiasts communicate their passion to members of Congress. Don’t have the words? Don’t worry – SEMA has helped craft a message you can pass along to your representative. Simply click here to learn more.
Ford F-150 Lightning Gets Electrifying Response
On average, Ford sells 100 new pickups every hour of every day – and if last week’s debut is any indicator, the F-150’s EV version will be just as popular and in-demand.
CEO Jim Farley told CNBC that Ford took 20,000 reservations in less than 12 hours since the automaker pulled the covers off the truck. “The response has been great,” he said during the interview. “We’re off to the races.”
While reservations only require a $100 deposit, Ford’s other buzzy debut – the Bronco – proved consumers were willing to back up their low-cost support with real investment. According to Ford Authority, despite serious supply constraints and the ongoing chip shortage, 66% of 190,000 Bronco reservation holders have converted them to actual orders.
Helping the F-150 Lightning along this path to acceptance are a number of attractive features. With a mid-four-second 0-60 time, respectable 300 miles of range, and a battery capable of powering a full-sized home for three days, this pickup is something special. Familiar styling and a seriously fair price-point don’t hurt either.
The all-new Lightning should start around $40,000. After tax credits, that means the EV F-150 is actually cheaper than the standard combustion engine model! It also marks the pickup as one of the most affordable EVs on the market today – period.
Does Ford’s pricing feel ambitious? With truck demand at record highs and the microchip shortage keeping supply low, the segment’s average prices are skyrocketing – even on base trims. The Detroit Bureau reports some low-end pickups have seen their prices surge by $6,000 or more in just two years, with incentive packages becoming a rare sight. Read more on the current truck market here.
Toyota Teases All-New Tundra and Corolla Crossover
At the risk of making an awful pun, the Ford Lightning did a great job of stealing Toyota’s thunder last week. The Japanese automaker teased its next-gen Toyota Tundra, while spy photographers nabbed a glimpse at the company’s all-new subcompact crossover, the Toyota Corolla Cross.
The official teaser photo of the 2022 Tundra doesn’t reveal much, but it does imply the new pickup will be large and in charge. Beneath the hazy filter, we spy some bold-looking L-shaped headlamps and a center grille light bar. Car & Driver suggests the three amber marker lights above the grille mean the new Tundra could be more than 80 inches wide.
No word on powertrain specs yet, but the current Yota packs a 381-hp 5.7L V-8. Based on the direction of the current market, a twin-turbo 3.5-liter V-6 could take its place, with a hybrid option on deck. An electric pickup is most certainly in the works, as the automaker confirmed it will bring electrification to its pickup line.
As for the Toyota Corolla Cross, the subcompact crossover is officially hitting the North American market. Spy photographers caught the new baby ute testing on U.S. roads. According to the automaker, the Corolla Cross hits American dealerships in September and will be built at a new joint-venture factory with Mazda in Alabama.
Toyota plans to slot the vehicle in what it considers “white space” above the C-HR but below the RAV4.
SEC Investigating Canoo
Another week goes by, another upstart automotive brand gets into hot water with the federal government. It’s not Tesla or one of those self-driving car companies, we swear! This time around it’s EV start-up Canoo.
The goofy-named automaker joins a growing list of SPAC-backed companies recently landing on the SEC’s radar. Both Lordstown Motors and Nikola Corp are juggling fresh SEC investigations as well.
SPACs, or special purpose acquisitions companies, are essentially shell companies. Investors set them up for one purpose: to raise money through an IPO, so they can buy another operating company. SPACs don’t have any actual commercial operations – meaning they make no products, nor do they sell anything. Their only assets are the money raised in the IPO.
What’s more, the people buying into that IPO don’t actually know what the eventual acquired company will be. (Apparently successful investors in sharp suits are better at selling the unknown than actual tangible things.) These types of mergers offer a different path to going public than a traditional IPO, hence why struggling EV startups are keen to hitch their wagons to them.
Enter the SEC.
“Since these mergers are regulated differently, it wound up giving startups more leeway in regards to their business projections,” explains The Verge. “In April, the SEC said it would start taking a closer look at this discrepancy to make sure that investors weren’t being misled. Canoo received its notice from the SEC on April 29.”
The “fact-finding inquiry” is quite broad, covering the merger, as well as Canoo’s “operations, business model, revenues, revenue strategy, customer agreements, earnings and other related topics, along with the recent departures of certain of the Company’s officers,” according to the regulatory filing.
Indeed, Canoo’s CEO and co-founder Ulrich Kranz resigned in April, along with the company’s chief lawyer, Andrew Wolstan. The company’s chief financial officer, head of corporate strategy, and another co-founder also left this year, signaling some major shakeups at the small startup.
The SEC push for tighter rules jeopardizes the “marriage of convenience” between SPACs and green startups, reports Automotive News. “Already, SPAC filings dropped to about 30 last month, from February’s red-hot peak of 188.”
Exit stage left. Self-driving car company Waymo finds its own senior exec team in flux. A whopping six longtime executives have left or announced their departures over the past three months, indicating the AV industry’s ambitious view of the future might be looking a little less rose-colored. Read more here.
Fisker to Make First Electric Popemobile
Speaking of going green… it looks like Pope Francis is about to cruise to and from public appearances in a custom-built Fisker Ocean. Now the big guy can snatch pizza, while staying carbon neutral in a rechargeable, battery-powered whip.
A well-known advocate for environmental sustainability, this move is actually pretty on-brand for Pope Francis. According to NBC News, the pontiff met with Henrik Fisker and Geeta Gupta-Fisker, founders of the California-based electric car startup, who provided him with renderings of the vehicle they plan to deliver during the fourth quarter of next year. It will be based on the Fisker Ocean SUV, which the company plans to put into production in 2022.
“I got inspired reading that Pope Francis is very considerate about the environment and the impact of climate change for future generations,” says Henrik Fisker. “The interior of the Fisker Ocean papal transport will contain a variety of sustainable materials, including carpets made from recycled plastic bottles from the ocean.”
Talk about some great PR, eh? If it’s good enough for His Holiness, it’s good enough for you!
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 and learn why fifth-wheel RVs are invading American roads at a record clip!
