Gas War: U.S. Oil Companies Accused of Price Fixing With OPEC, Increasing Inflation

Last week, the Federal Trade Commission (FTC) shared documents that would seem to suggest that U.S. shale oil firms purposefully colluded with the government of Saudi Arabia to fix oil prices between 2021 and 2023. The report was followed by a piece from BIG journalist Matt Stoller alleging that American oil companies and Saudi leadership likely cost the average American household $3,000 via fuel price hikes and the subsequent inflation created by artificially spiking the market.

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Who Actually ‘Won’ the UAW Strike? Are Union Pay Bumps Sustainable?

Despite rampant talk about how the United Auto Workers’ stand-up strike and its resulting deals would bankrupt the automotive sector, the union strategy appears to have ended up costing the industry less than the labor strike GM endured all by its lonesome in 2019.

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QOTD: Are You Worried About Auto Loans?

We reported on auto-loan delinquencies yesterday since they're at a record high, though subprime loans are the biggest cause for concern.

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Where Your Author Makes a Quick Purchase (and a Medium Length Trip)

Picture it. Last Tuesday, late afternoon. Checking the used convertible listings like I’d been doing for some time, it seemed the right car would never materialize. But on that particular afternoon, I happened to check Facebook Marketplace, a terrible place to search listings which I generally avoided. The default 249-mile search radius showed me a particular convertible I hadn’t seen listed before. Turned out it was the one.

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Where Your Author Still Hasn't Purchased a Used Convertible

Would you believe it’s been a year and a half since we last discussed used convertibles? Much has changed during the interim: The economy, the used-car market, and life in general. While some of you were fairly convinced I’d purchase a car “on the rebound” after I’d dumped the quality control nightmare that was the Golf SportWagen in July of 2021, you were wrong. Let’s catch up a bit.

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Rivian Suffers Job Cuts, Factory Exempted


I mentioned that Rivian was facing job cuts during today's QOTD, and here's the skinny.

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White House May Propose Gas Tax Holiday [Updated]

National fuel prices are currently averaging right around $5.00 per gallon in the United States. However, there are plenty of states with stations listing gasoline well above $6.00 per gallon with diesel being driven even higher. This has started to wreak havoc on the trucking industry, which is now seeing companies pausing shipments to renegotiate contracts, and infuriated consumers who remember a gallon of gas being $2.17 during the summer of 2020.

Earlier this year, Congress and the White House suggested suspending the federal fuel tax to alleviate the financial burden. But the notion was walked back, as prices were relatively low at the time (roughly $3.50 per gallon) and criticisms swelled that this simply exchanged one problem for another. Four months later and things are looking rather desperate, with the Biden administration revisiting the premise of pausing fuel tax to help soften the blow of record-breaking prices at the pump.

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Rivian Rolls Back Price Increase After Making Everyone Angry

On Tuesday, Rivian announced it would be increasing vehicle pricing by roughly 20 percent to account for higher inflationary pressures and higher component costs. It’s not the first electric vehicle startup to do so, or even the first automotive business that realized the hectic economic situation has created a window for expanding profit margins. But it was one of the few to get slapped in the face, metaphorically, after trying to get away with it.

Shares of the company began plummeting almost immediately as it endured widespread criticism, then people started canceling reservations. The plan would have made the $67,500 Rivian R1T electric pickup an $80,000 vehicle, while Rivian would have tacked on an additional $10,000 to the R1S SUV for a new ballpark total of $85,000. This included preorders, which would help to explain why everyone went bananas. But that particular aspect of the plan has been abandoned in an effort to save face and money.

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Suspending Federal Fuel Tax Pitched By Senate, White House

President Joe Biden and Democratic lawmakers have suggested ending the federal gas tax until 2023 as a way to offset fuel prices that are nearing record levels and possibly appease some on-the-fence voters ahead of midterm elections. Senators Mark Kelly (D-AZ) and Maggie Hassan (D-NH) recently pitched the bill in Congress. While the White House has not made any official endorsements, it’s offered tacit support by saying it didn’t want to limit itself in terms of finding new ways of easing the financial burdens Americans are facing during a period of high inflation.

“Every tool is on the table to reduce prices,” White House assistant press secretary Emilie Simons said in regard to a possible gas tax holiday. “The president already announced an historic release of 50 million barrels from the Strategic Petroleum Reserve, and all options are on the table looking ahead.”

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Rising Fuel Prices Have Upended the Economy

Unless you’ve spent the last twelve months locked inside your home, then you’re probably dreading the next trip to the gas station. The average price for a gallon of 87 octanes has reached $3.40 in the United States. That’s about 50 percent steeper than it was at the start of 2021 and undoubtedly more than you’re wanting to shell out today. Though one cannot ignore the dizzying rates being advertised outside of British “petroleum parlors” or France’s many “un bordel pour voitures.” Canadians are also forced to endure higher gasoline prices, as the government tends to stack the taxes a little higher and the U.S. dollar tends to be more valuable. At least for now.

All you need to know for the purposes of this article is that fuel prices are up and it’s influencing the economy in some pretty dramatic ways.

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China Is Back, Baby! Quarterly Auto Sales up First Time in Two Years

With global economies suffering from pandemic-related lockdowns, there’s been just one question burning in the minds of economists: ‘When will Chinese automotive sales finally rebound so that the industry can once again feel comfortable enough to keep pouring resources into Central Asia?’

Now, apparently.

China’s car market just recorded its first quarter of year-over-year sales growth in two years, with last month’s volume rising 12.8 percent (vs 2019) to 2.57 million units, according to the China Passenger Car Association (CPCA). While its always wise to keep in mind that the nation has a history of obfuscating figures that might paint it in a bad light, CPCA has been slightly more consistent in its reporting than the China Association of Automobile Manufacturers (CAAM). Both outlets also have a tenancy to showcase blind optimism for the local economy, but there appears to have been good reason for that over the last five months.

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AutoNation Ending Aftermarket Collision Parts Division - Shrewd or Crude?

AutoNation’s collision parts division is scheduled to be eliminated by the end of 2020, freeing up some cash after the two-year endeavor proved less than profitable.

Former CEO Cheryl Miller had made it clear that one of her main goals for the company was to ramp up services in an attempt to enhance revenue and diversify the business. But this tactic has proven perilous for the automotive industry at large, often offsetting opportunities to make money with sizable financial risks.

Mobility is probably the best example of this, as its broad enough to encompass everything from self-driving vehicles to subscription models and relies on the market maturing into something that will presumably see returns on investment years down the line. However, AutoNation’s diversification was far more traditional. It seemed like a sure thing, since the collision parts business was forecast to grow over the next five years. In fact, despite being the the largest automotive retailer in the United States, the company actually owes 46 percent of its gross profit to parts and service. Selling cars (both new and used) only accounts for 24 percent — with the rest coming from finance and insurance.

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Cox Automotive Cuts Staff, Focuses on 'Digital Services'

Cox Automotive eliminated around 1,600 jobs this month as it prepared to better embrace online commerce (and nobody having any money). The company axed nearly 300 employees in June after having furloughed over 12,000 people in response to the coronavirus pandemic this spring. A large number of those positions were related to its Manheim auction arm, which suffered the hardest due to stringent lockdown protocols that prohibited public gatherings.

Now it’s talking about improving some of the digital features it added to Autotrader this year and embracing the virtual landscape to future-proof itself while forecasting a 25-percent cut in annual profits, and letting people go — with the majority of the layoffs coming to furloughed Manheim employees.

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Swift Economic Recovery in GM CEO'S Crystal Ball

General Motors CEO Mary Barra predicted a brief recession and streamlined economic recovery in a recent interview. Mixed in with favorable coverage of how the company saved Michigan’s Governor Gretchen Whitmer by manufacturing personal protective equipment intended to combat the pandemic, the Detroit Free Press took time out to get Barra’s expert opinion on various subjects.

She mused that a 300-mile range will be the sweet spot for GM’s electric vehicles, noting that the company may eventually offer distances in excess of that with its new Ultium platform, and touted the merits of the Inclusion Advisory Board she recently placed herself at the head of. Things began to get more substantive when she attempted to predict how long the economy would languish as a result of COVID-19 lockdowns

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Joe Biden Wants to Bring Back Cash for Clunkers

Earlier this week, presumed Democratic nominee for president and former shut-in Joe Biden discussed some of the changes he’d make if elected. While most do not overlap with the automotive industry and would force your author to digress into rants about the perils of unchecked government spending, one item tied to his ambitious $2 trillion climate proposal is related directly to cars — and feels uncomfortably familiar.

Biden appears interested in bringing back the Car Allowance Rebate System (aka Cash for Clunkers) from the last recession, or at least a version 2.0 that accelerates electric vehicle adoption and development inside the United States.

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  • VoGhost Quality review. Thanks!
  • VoGhost Love this collective clutching of pearls over a vehicle name not a single commenter will ever see, drive or buy.
  • 28-Cars-Later "Here's why" edition_cnn_com/2018/06/13/health/falling-iq-scores-study-intl/index.html
  • 28-Cars-Later Seriously, $85. GM Delta I is burning hot garbage to the point where the 1990 Saturn Z-body is leagues better. My mother inherited an '07 Ion with 30Kish otc which was destroyed in 2014 by a tipsy driver with a suspended license (driver's license enforcement is a joke in Pennsyltucky). Insurance paid out $6,400 when it was only worth about $5,800 IIRC, but sure 10 year later the "hipo" Delta I can fetch how much?
  • Buickman styling does not overcome powertrain, follow the money. labor/materials.