Auto News: Enthusiast Wins, Vehicle Quality Losses, Ford Lease Changes & New Dieselgate?

WOW, has it been a busy week in the auto industry. Pikes Peak crowned a winner at its centennial event, while the suits in D.C. handed out a couple notable wins for enthusiasts. J.D. Power dropped its Quality Study results to the tune of a big, fat raspberry for automakers. (Spoiler alert: Now’s the time to modify the ride you have, rather than buy a new one.) Hyundai and Kia had a nasty surprise when their offices in Germany were raided over possible diesel defeat devices. And Ford decided to nix end-of-lease buyouts on EVs – an unusual move they say will help reduce their carbon footprint. Plus, how American is your car? The results might surprise you.

Find all that and more in this edition of Auto Industry News.

100th Running of Pikes Peak Takes “Race to the Clouds” Literally

As competitors aimed to take a bite out of the 12.4-mile, 156-turn road that winds to the 14,115-foot summit, the mountain bit back.

Participating drivers at Pikes Peak expected to contend with steep cliffs and terrifying drop-offs – many with zero guard rails. This year, they faced an additional challenge: fog so dense it made visibility near impossible. The “Race to the Clouds” became quite literally that. One competitor who lost sight of the road slid sideways and flipped his car. Thankfully, he landed on his wheels and continued the race. It’s something to see.

As for the winner… victory belonged to Robin Shute. Driving a 2018 Wolf TSC, which he also piloted to victory in 2019 and 2021, Shute completed the infamous hill climb in 10:09.525 – an impressive feat, since he had to crawl through the final stretch in near-blindness.

“The last bit was kind of miserable,” he said. “I was just idling up in third gear, just trying to find the road. You’ve got some white lines on the sides, so I was just trying to keep my eye on those, hoping I could make it to the top.”

Despite his slow final ascent, Shute still managed to finish 25 seconds ahead of the second-place car, an almost-stock Porsche 911 Turbo S piloted by David Donohue.

How Will You Celebrate?

This past week, the SEMA Action Network (SAN) secured congressional resolutions recognizing July 8, 2022 as Collector Car Appreciation Day (CCAD). The date marks the thirteenth consecutive commemoration in what is now an annual holiday. The day’s goal is to celebrate and raise awareness of the vital role automotive restoration and collection plays in American society.

SAN encourages automotive enthusiasts to take part in this year’s CCAD celebration by planning or attending events in their own community. Interested in publicizing your July celebration at no cost? SAN’s got you covered. Simply head to this link and submit the details.

In another win for enthusiasts…

The Federal Trade Commission (FTC) reaffirmed consumer right-to-repair with recent action against Harley-Davidson. The agency sided with complaints accusing the motorcycle manufacturer of voiding customers’ warranties if they used aftermarket parts or sought repair service outside authorized dealers. Citing the Magnuson Moss Warranty Act, the FTC claimed Harley-Davidson used illegal warranty terms that restricted consumers’ choices, cost consumers money, and undercut independent repair shops.

Anti-competitive repair restrictions are a hot topic these days – especially as automotive technology evolves. While existing legislation protects consumers’ right to modify, SEMA and other aftermarket organizations are urging Congress to enact the REPAIR Act. Introduced to the House of Representatives in February, this bipartisan legislation would require automakers to provide access to the tools and information needed for the independent aftermarket to service, repair, and modify vehicles.

Click here to learn more about the REPAIR Act and send a letter of support to your member of Congress.

Speaking of modifications… Step into adventure with the N-FAB ROAN. This must-have accessory combines the look of traditional cab-length running boards with extra-large, traction-targeted step plates that ensure your foot finds support when you need it – in all weather conditions.

J.D. Power’s Initial Quality Study Results: We Got A Problem

Compiled with the help of unfiltered customer feedback, J.D. Power’s Initial Quality Study serves as an industry benchmark for new vehicle quality measured at 90 days of ownership. With more than three decades under its belt, the comprehensive report has proven to be an excellent predictor of long-term reliability.

Which is why this year’s results really sting.

Apparently, it wasn’t just the world that got sick during the pandemic – so did vehicle quality, J.D. Power says.

“The disruptions caused by the pandemic—supply chain issues, record-high vehicle prices and personnel dislocations—contributed to vehicle problems reaching a record high in the 36-year history of this benchmark study. Compared with 2021 results, the industry experienced an 11% increase in problems per 100 vehicles (PP100), which is 18 PP100 worse than last year, resulting in an industry average of 180 PP100. A lower score reflects higher vehicle quality.”

There’s a lot to unpack in the report (which you can learn more about here).

Here are the highlights:

• The microchip shortage played a big role in consumer disappointment, as it forced automakers to remove some desirable features like heated seats, HD radio, and wireless charging.
• While both all-new models and continuing models increased in problems this year, the newly-launched vehicles fared worse.
• Mass-market brands performed better than their premium competitors, continuing a trend that started in 2016. J.D. Power notes that premium vehicles usually have more onboard technology, increasing the likelihood of problems.
• GM bucked the overall trend, posting an improvement. Buick, in particular, showed the greatest gains and highest ranking, vaulting it from 12th place in 2021. Among the premium crowd, that honor went to Genesis.
• Infotainment systems remain the biggest problem area, with consumers complaining of poor connectivity/pairing, wonky voice-recognition, bad sound, and touchscreen difficulty.
• EV and hybrid owners cited more problems with their vehicles than did owners of ICE rides. Excluding Tesla (which dominates the segment and can therefore muddy the results), battery EVs average 240 PP100, while hybrids (PHEVs) average 239 PP100 and ICE vehicles average 175 PP100. Tesla came in at 226 PP100.
• Owners reported more problems with advanced driving assistance systems (ADAS) in 2022 than they did in 2021. Lane departure warning/lane-keeping assistance received the most complaints.

Did you know…?

The Bank of America Merrill Lynch Car Wars study predicts automakers will launch roughly 245 new models over the next four years. Moreover, by 2026, 60% of those new models will be EV or hybrid. With proof that supply chain issues are deteriorating vehicle quality, automakers will certainly have their work cut out for them.

Ford Ends EV Lease Buyouts

Early last week, Ford sent a letter to its dealers announcing plans to stop end-of-lease buyouts for the F-150 Lightning, Mustang Mach-E, and E-Transit van. The automaker didn’t go into much detail on why it was making the strange move except to say that by “localizing the complex battery supply chain network, creating recycling options for end-of-life vehicles, and increasing U.S. battery production” it would be ensuring Ford electric vehicles remain both affordable and environmentally-friendly for customers.

Simply put: Between microchip shortages and a woefully-unprepared battery production pipeline, pumping out shiny new EV models will be tough. And Ford needs shiny new models because those tech-heavy EVs go obsolete pretty quickly. By bringing end-of-lease electric vehicles back into the company’s arms, Ford can close the supply chain loop a little bit… and stockpile batteries like toilet paper during quarantine. Reusing what you’ve already got on hand saves money (which will presumably be passed down to consumers). The practice also helps lessen the environmental impact of mining for new battery materials.

It’s worth noting Ford’s leasing announcement came just a few days after telling dealers that, when drafting F-150 Lightning sales agreements, they were allowed to explicitly prohibit buyers from selling their trucks less than a year after purchasing. As we’ve seen lately, these opportunistic resellers drive up market prices by encouraging big dealer mark-ups. So, it appears Ford is trying to address the sky-high vehicle pricing from a few different angles.

Environmental Bulletin

The Supreme Court also had a busy week, passing several contentious rulings. As it concerns the auto industry, the judges recently limited the EPA’s ability to curb carbon emissions.

More specifically, in ruling on West Virginia v. EPA, the Supreme Court declared the agency did not have the authority to dictate a power generation shift from one source to another (like moving from coal to solar). In a 6-3 ruling, the justices argued that kind of power belongs to Congress only.

The EPA still has power to mandate emissions reductions and set and enforce standards, but the ruling does leave the door open for more litigation. For example, proponents of the RPM Act have been battling with the EPA since its 2016 reinterpretation of the Clean Air Act. The government agency stated that it would be illegal to convert any motor vehicle into a racecar if the emissions system was modified or removed – including those that never see street time and are trailered to and from racetracks. It’s possible that RPM Act proponents can use this new ruling as leverage in their argument that the EPA overstepped its authority when proposing the restrictions.

You can learn more about the RPM Act and follow its legislative progress by clicking here.

Hyundai – Kia Get Nasty Surprise

Last week, European authorities raided eight Hyundai and Kia offices in Frankfurt and Luxembourg over allegations the companies used illegal diesel defeat devices to mask harmful emissions. Following the news, Hyundai and Kia shares plunged 5% and 4% respectively.

Prosecutors announced via statement that they were investigating the automakers as well as engine software suppliers Delphi Technologies and Bosch. Yes, that Bosch, the one that settled with Stuttgart prosecutors in 2019 for $100 million over its role in Volkswagen’s diesel-defeat fiasco.

A spokesperson for Hyundai acknowledged the raid and said the companies were cooperating with the authorities.

How American is Your Car?

Cars.com recently released its American-Made Index, which analyzes five criteria to determine just how American your car is. From parts content, engine origins, and transmission origins, to assembly location and U.S. manufacturing workforce, the index ranks 95 vehicles to determine the vehicle that contributes most significantly to the economy.

Here are the Top 10:

1.) Tesla Model Y
2.) Tesla Model 3
3.) Lincoln Corsair
4.) Honda Passport
5.) Tesla Model X
6.) Tesla Model S
7.) Jeep Cherokee
8.) Honda Ridgeline
9.) Honda Odyssey
10.) Honda Pilot

Surprised? Click here to find the full results and learn more about the how the index works.

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 handy how-to guide on diagnosing trailer wiring issues. Curious about overlanding? On Friday, we serve up a list of the top vehicles you should consider if you’re heading off-grid on a budget.