Nutson's Weekly Automotive News Wrap-up June 23-29, 2024
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Here are Larry's top story picks from this past week's important to you, relevant, semi-secret, or snappy automotive news, opinions and insider back stories presented as expertly crafted easy-to-understand automotive news nuggets.
* Sharpen those pencils. CDK Global provides software used at 15,000 automobile dealers. Its products handle everything from records to scheduling. Thousands of dealerships across the United States and Canada were in a near deadlock after two consecutive cyber incidents at CDK Global led to a shut down of its systems. The attack began mid of last week and continued through the past weekend. Dealers were required to use workarounds such as spreadsheets and pen-and-paper to keep track of sales, repairs and orders. A CDK statement said it was recovering from a “cyber ransom event,” suggesting a ransomware attack, which involves hackers seizing control of a company’s computer systems or data until a ransom is paid. This week CDK began a reboot test of its systems. The impact on June auto sales is yet to be determined.
* June sales outlook, maybe. Cox Automotive forecasts U.S. new-vehicle sales in June to show mild improvement over last year, but high prices and interest rates continue to hinder a stronger market. In June, the seasonally adjusted annual rate (SAAR), or sales pace, is expected to finish near 16.0 million. According to Cox Automotive’s Kelley Blue Book estimates, new-vehicle sales volume through the first half of 2024 is forecast to increase by nearly 225,000 units compared to the first half of 2023 – an increase of 2.9%. The sales pace through the first half is expected to be 15.6 million, up from 15.4 million in the first half of 2023. However, with the CDK Global situation this may all change.
* Deals for families. According to Carfax's Used Car Price Index, in June, the prices for vehicles best suited for families – SUVs, Vans & Minivans and, yes, even Pickup Trucks – saw the biggest decline in month-over-month prices. Those price declines came as the rest of the segments in the Carfax Used Car Index held pretty steady. Get the full story here: https://www.carfax.com/blog/used-car-prices
* Tariff delay. According to Reuters, Volvo Cars will postpone the U.S. deliveries of its EX30 electric vehicle as it focuses on expanding production of the compact SUV outside China in the wake of tariff hikes on exports from the country, a company spokesperson said. Volvo had previously said it would begin selling the EX30 (priced around $35,000) in the United States later this year, but a spokesperson told Reuters that deliveries will not start until 2025, in part due to the introduction of tariffs of more than 100% on Chinese EV imports by the U.S. government. The EX30 for the US will now be produced in Belgium.
* Quality Survey. The J.D. Power 2024 U.S. Initial Quality Study (IQS) was released and the industry average is 195 problems per 100 vehicles (PP100). Mass market brands, with a combined average of 181 PP100, outperform the industry average. Meanwhile, premium brands—often including more complicated systems and thus more reliance on connectivity—average 232 PP100. A lower score reflects higher vehicle quality. Ram is the highest-ranking brand overall in initial quality with a score of 149 PP100. Among mass market brands, Chevrolet (160 PP100) ranks second and Hyundai (162 PP100) ranks third. Among premium brands, Porsche ranks highest with a score of 172 PP100. Lexus (174 PP100) ranks second and Genesis (184 PP100) ranks third. The full story is here: 2024 U.S. Initial Quality Study (IQS)
* Korea Auto Show. The South Korea 2024 Busan International Mobility Show opened with a press day on June 27 and continues until July 7. Hyundai-Kia, Renault Korea and BMW Korea unveiled their latest electric and hybrid models. The biannual event is held at the Busan Exhibition and Convention Center. Kia showcased the EV3, a compact electric SUV that is coming to the US next year. Also debuted were the Hyundai Inster EV city-car and Genesis Neon Concept, which will transform into its first full-size electric SUV, the GV90.
* Ride share! Fisker, the electric-vehicle startup that filed for bankruptcy earlier this week, is in talks to sell its entire fleet of about 4,300 new cars to American Lease, a supplier of leased cars to Uber and Lyft drivers in New York City. Full story here: HERE
* Buyer beware. Counterfeit air bags made of substandard components have been tied to multiple fatalities and injuries in crashes over the past year. The fake parts make their way into cars that were in crashes and needed extensive repairs, including a replacement of the manufacturer-installed air bag. Read this Wall Street Journal to learn more: HERE
* Check the tires. Before you hop into a ride share vehicle, it might be a good idea to take a quick look at its tires. That’s because a new survey released in conjunction with the start of 2024 National Tire Safety Week revealed a lot of rideshare drivers don’t really know much about tire maintenance. Get informed from this story in Forbes. HERE
* Tesla recall. Tesla is recalling its new Cybertruck pickup in the U.S. to fix problems with trim pieces that can come loose and front windshield wipers that can fail. The new recalls, announced in documents posted by the National Highway Traffic Safety Administration, each affect more than 11,000 trucks.
* Ford recall. Ford is recalling more than 550,000 pickup trucks in the U.S. because the transmissions can unexpectedly downshift to first gear no matter how fast the trucks are going. The recall covers certain F-150 pickups from the 2014 model year. Ford says in documents posted by U.S. safety regulators that the downshifting can cause drivers to lose control of the trucks, increasing the risk of a crash.
* VW recall. Volkswagen is recalling over 271,000 vehicles in the United States due to a potential wiring fault that may deactivate front passenger air bags when the seat is occupied, the U.S. auto safety regulator said. The recall affects the German automaker's certain 2021-2024 Atlas and 2020-2024 Atlas Cross Sport vehicles where the passenger occupant detection system (PODS) may experience a fault in the wiring and affect front passenger air bags.
* Lexus recall. Toyota Motor North America has issued a recall of its two most popular Lexus crossovers — the top-selling 2024 Lexus RX and the second-bestselling 2024-25 Lexus NX — because their front-seat head restraints may be able to be removed without pressing the release button. About 11,000 vehicles built between March and May are subject to the recall.
* Big crash. Legendary drag racing funny car driver John Force, 75, was transported to a local hospital following a fiery crash in the NHRA Virginia Nationals. He suffered injuries in the crash but was alert and conscious when he was extricated from the wreck. Details of Force’s injuries have not yet been provided, but a social media post from his team said he was being evaluated in the Intensive Care Unit. “The Hall of Fame driver and car owner crossed the finish line at Virginia Motorsports Park in 4.100 seconds at a speed of 302.62 miles per hour after winning his first round race when his car suffered a catastrophic engine failure that sent it, on fire, careening across the track and into the concrete guardrail bordering the left side of the track,” John Force Racing reported. Late in the week, according to a statement by John Force Racing, the 75-year-old was moved from the trauma intensive care unit to the neuro intensive care unit four days after the accident for treatment of head injury.
* A fast race to the clouds. The Pike’s Peak International Hill Climb had its 102nd running, and several EVs which set out to post new records have done so, with the Rivian R1T and Ioniq 5N both claiming records, and the Ford SuperTruck being the fastest vehicle up the hill. The Pike’s Peak International Hill Climb is one of the longest-running races in the world, being held 102 times since 1916. It’s a famously difficult race, starting at an already-high 9,390ft (2,862m) in elevation and finishing at 14,110ft (4,300m). The Ford SuperTruck set the fastest time of the day, with an 8:53.553, the only vehicle to go sub-9 and more than ten seconds faster than the next-best finisher. And that was after the vehicle had an unexpected shutdown in the first sector, coming to a complete stop and needing to be repowered, losing almost half a minute in the process. As a result, it didn’t set a record, as last year’s Ford SuperVan, a similarly-modified Ford Transit Electric, set a time of 8:47.682. That vehicle still holds the “Pike’s Peak Open” class record, and both were piloted by Romain Dumas
* Old timers on the road. The green flag dropped on the Hemmings Motor News Great Race presented by Coker Tire early this week as the race makes its way from Owensboro, Kentucky to Gardiner, Maine! The Great Race is a nine-day antique, vintage, and collector car competitive controlled-speed endurance road rally on public highways. The 2024 race has 140 entries that will test a driver/navigator team's ability to follow precise course instructions and the car's ability to endure a cross-country trip. The course instructions require the competing teams to drive at or below the posted speed limits at all times. HERE
* RIP. The woman primarily responsible for starting the trend of getting all those rubber ducks on the dashes of Jeeps, and spreading joy around the world, has reportedly died. Allison Parliament, who founded the “Duck Duck Jeep” movement, died on June 22, 2024, according to several group posts, and the official Duck Duck Jeep page. The cause of her death has not been officially reported. Her simple yet powerful initiative brought joy, kindness, and a sense of camaraderie to Jeep enthusiasts around the globe.
Stay safe. Be Well.