Auto Industry News: Toyota Feels the Burn, Bronco Hits the Beach, Hagerty Goes Public, and RAM Goes Electric

Exciting announcements and setbacks seem to be recurring themes this week across the auto industry. Toyota, who up until now had a handle on the microchip fiasco, is starting to feel the strain of the prolonged shortage. Meanwhile, automakers like Subaru are turning heads this week with some vague-but-exciting new spins on old classics. Not to be outdone, Ford is trying to inspire off-road fans with a new Bronco project build that screams Beach Boys as much as it does Rambo.

There is also more movement on the EV front from Stellantis. The automaker shared updates on its plans to roll out more electric-powered vans and trucks in 2023 and 2024. And classic car insurer, Hagerty, just took a big step. The group announced plans to go public following the close of a high-dollar acquisition agreement.

Toyota Slashing Global Output by 40% this Fall

The ongoing global microchip fiasco doesn’t seem to be over yet, especially with recent news from Malaysia – the world’s major center for chip testing and packaging. The southeast Asian country recently experienced a surge in COVID cases, stirring up chatter about possible production slowdowns or, worst-case scenario, total plant shutdowns. Already, Ford said it would temporarily suspend F-150 production at one U.S. location as a result.

Despite successfully navigating the shortage through most of the summer, Toyota recently joined other automakers’ announced production slowdowns.

According to LMC Automotive, Toyota’s North American vehicle production was “humming along” at over 90% capacity for the year through June. That number changed drastically in recent weeks, as the company announced plans to slash global production. The suspension, which will start at the end of August and run through the end of September 2021, includes U.S. production lines and 14 plants in Japan. Bloomberg reports the shutdown means 360,000 fewer cars will be made next month. The setback totals roughly 40% of the company’s total output for September and affects most of Toyota’s key brands, like Prius, RAV4, and Camry.

Until the current crisis, Toyota had a solid contingency plan to keep up with chip production. Following the Fukushima disaster in 2011, the automaker drew up a continuity plan requiring chip suppliers to stockpile as much as six months’ worth of chips. Now it seems like even those supplies are drying up.

Even with persisting challenges, automakers aren’t slowing down with exciting new release news…

Subaru Heads Further Off-Road

Subaru looks like it’s finally taking the full plunge into the rugged category with its newest sub-brand known as “Wilderness.”

We got a glimpse of this off-road brand line earlier this year, with hints of lifted suspension, underbody armoring, skidplates, and all-terrain tires. Now, Subaru’s teasing a Sept. 2 debut for the 2022 model. In the video shared by the automaker, the new recruit looks to be the Forester SUV.

The Forester comes as a follow-up to the recent 2022 Outback Wilderness, which sports a 2.4-liter turbo flat-four engine with 260 hp. That model featured an improved ground clearance (9.5 inches) to entice off-roaders, so we’re assuming this model will also see a similar added lift and all-terrain tires. Outside of those mods, it’s hard to gauge what else Subaru may add to the Wilderness, based on the video. We’re guessing touches like roof rack options, towing capabilities, and interior upholstery upgrades might be on the menu.

Subaru’s push to attract more intrepid off-roaders could be good timing if market trends persist.

In April 2021, SEMA found that the light-truck segment—which includes pickups, vans, SUVs, and CUVs—is forecast to account for roughly 70% of all new vehicle sales by 2025. Suppose the automaker can merge the traditional suburban Colorado Subie driver with the backwoods Overlander. In that case, there’s undoubtedly a market share to be had. And while it’s a much different-looking animal than, say, the recent incarnations of the Bronco Sport, Subaru may be looking to take on new competitors with an off-road-ready ride.

Ford Hits the Beach With Bronco Riptide

Ford recently revealed its 2021 Bronco Riptide project build, “designed with West Coast fun and factory-backed accessory personalization in mind,” the automaker said.

The 4×4 definitely gives off beach vibes with the roof and doors removed (replaced with tubular doors) and a tint that Ford calls Velocity Blue. There’s also some pointed accessorizing like surfboard roof racks and marine-grade vinyl seats.

Even with its Californian motif, the Riptide signals that all types of off-road adventures are on the table by borrowing all the rugged goodies from the Sasquatch package. That includes: beefy 35-inch mud-terrain tires on 17-inch factory wheels, a high-clearance Bilstein suspension system, and Ford’s Bronco Terrain Management System. Plus, Ford says drivers can bundle other accessories at point-of-purchase like LED light bars, bike racks, and a rugged prototyped front steel bumper.

Whether or not it’ll inspire drivers to build their own Riptide rig is hard to tell. Still, Ford’s certainly giving off-roaders some great ideas with their package offerings. (Hear that, Subaru?)

Your Driver is Approaching, Look for the Hot Dog

Speaking of sweet new rides…

The Oscar Meyer Wienermobile has long been the shining example of a marketing gimmick. Now, it appears the iconic traveling hot dog has a new game. The company is teaming up with Lyft in select neighborhoods of Los Angeles, Atlanta, and, of course, hot dog hubs New York and Chicago. As part of the campaign, the Weinermobile will surprise riders in these select cities, since they won’t know it’s their ride until it shows up at the pickup spot.

Talk about an interesting surprise! Oscar Meyer says it’ll be a veritable party on wheels, with music, free swag, and neon lights. Here’s hoping it doesn’t spark too many arguments about whether a Chicago Dog or a New York Dirty Water Dog is better.

Hagerty Forms Agreement to Go Public

In other customized ride news, specialty automotive insurance platform Hagerty recently announced plans to enter into a $3 billion business combination agreement with Aldel Financial, a special purpose acquisition company (SPAC). Through the agreement, Hagerty will go public under the NYSE ticker “HGTY,” and Aldel will be renamed “Hagerty, Inc.” once the transaction closes.

What’s a SPAC? Click here to learn more.

Hagerty’s name is synonymous with classic cars partially because of its insurance specialty and partially because it continues to spearhead various events related to the niche. In 2019, the group assumed operation of the Greenwich Concours d’Elegance in Connecticut, and just last year, it scooped up the California Mille vintage sports car rally. This past March, Hagerty made its buzziest acquisition: the prestigious Concours D’Elegance of America. Starting next year, the event will not only shift from July to September, but also move from its traditional Detroit suburb setting to the heart of Motor City, in an attempt to reach a wider audience.

Hagerty’s move to go public also finds the classic car industry in a surprisingly good state.

Despite COVID, CNBC reports classic car values are up 6% over the past year and up more than 190% over the past decade. The collector car auction scene seems to concur:

Mecum just wrapped up its annual Daytime Auction in Monterey, with this year’s event marking the most successful to date. The auction house also celebrated enormous success at its Orlando Summer Special and inaugural Tulsa auction, as well as some absolutely wild results in Indy. That auction raked in more than $100 million in overall sales – a first within the collector car auction industry. Barrett-Jackson saw similar success this year, too. Its June Vegas event set 70 new auction records – after already setting 95 in Scottsdale back in March. Even little Carlisle Auctions celebrated a banner year: The 2021 Spring Collector Car Auction resulted in $6 million in sales and a record-high 72% sell-through rate.

According to CNBC, Hagerty’s deal is expected to pull in $820 million of gross proceeds, including a $704 million private investment in public equity.

It’s certainly a good time to invest in classic cars, but both entities will probably have some red tape to cut through in the coming months. Earlier this spring, the SEC opened an inquiry into the flurry of SPACs hitting the market. Initially, the commission told banks they could voluntarily provide financial information on SPAC transactions. Things have heated up since then, however.

At least eight companies who merged with SPACs in Q1 now face investor lawsuits. Allegations range from hidden corporate weaknesses to insider trading. This month, the SEC’s Investor Advisory Committee released an eight-page document urging the agency to “regulate SPACs more intensively by exercising enhanced focus and stricter enforcement of existing disclosure rules.” The committee plans to consider the non-binding recommendation on Sept. 9.

RAM Prepping EV ProMaster for 2023

As customer demand for electric vehicles continues to grow, Stellantis announced early last week that it will offer an electric variant of the RAM ProMaster Van starting in 2023. The automaker announced the news alongside the unveiling of its 2022 RAM ProMaster line.

Adding another EV to the pack is part of a larger initiative to implement EVs across the entire product lineup. There are plans to follow up the EV ProMaster shortly after with an electric RAM 1500 pickup in 2024.

The EV ProMaster will feature a battery-electric powertrain, which GM Authority says is a direct rival of GM’s forthcoming BrightDrop EV600 electric utility van. In addition to the upcoming electric version, Stellantis said the ProMaster will be available in 18 different configurations, including “two roof heights, three wheelbases and four vehicle lengths resulting in cargo lengths of 8, 10, 12, and 13.5 feet.

The 2022 ProMaster features the familiar 3.6-liter Pentastar V-6 engine. RAM bumped up the offerings with a segment-exclusive TorqueFlite nine-speed automatic transmission, which improves drivability and efficiency. All ProMaster models also come factory standard with a class-exclusive front-wheel-drive system. There’s also plenty of muscle for towing and cargo since the updated ProMaster boasts 6,910 pounds of towing capability and a 4,680 pounds of payload.

How the EV version will stack up to the ICE ProMaster remains to be seen.

GM Authority poses an interesting theory. Since Stellantis already sells electric utility vans overseas under other badges like Peugeot and Vauxhall, the publication speculates that this new EV might share similar build components. That theoretical build could include a 75 kWh lithium-ion battery (featured on the Peugeot E-Expert Van) and a potential 134 hp with 191 pound-feet of torque.

Stellantis says it expects 2022 RAM Promasters (non-EV versions) to hit dealer lots in Q4 of 2021. We’ll probably have to wait a bit longer for the official date for the EV ProMaster since Stellantis said 2023 in its announcement and that “more information will be available at a later date.”

Japan Has More Chargers than EVs

Yep, you read that right. Last week, a report by Bloomberg found that even though Japan’s Prime Minister Yoshihide Suga has pledged the country will go carbon neutral by 2050, it’s hit a bit of a snag. Even with ambitious efforts to ramp up production of charging stations for EVs (the country currently has around 29,000 stations) and incentives upwards of $900 million, the market penetration for the cars simply isn’t there. In fact, Bloomberg says the rate for EV cars in Japan is only at about 1%. And, some of the charging stations are beginning to age out since they have an average lifespan of roughly 8 years.

Even with the lukewarm adoption of vehicles, Japan says it still plans on plowing ahead with charging stations, setting a goal of 150,000 nationwide by 2030. That’s much to the chagrin of some auto industry talking heads.

Akio Toyoda, president of the Japan Automobile Manufacturers Association, told Bloomberg that if the number of units is the only goal, “then units will be installed wherever it seems feasible, resulting in low utilization rates and, ultimately, low levels of convenience.”

Meanwhile, in the U.S., we’re seeing the polar opposite dilemma: A decent amount of EVs on the road, but a lack of power stations — and a national grid in sore need of upgrading.

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