Ford conducted a lot of marketing research for its Edsel brand and was assured by many well-educated MBA types that its new lineup would be hugely successful. The research scientists said the unique styling and features Edsel offered would appeal to a broad cross-section of the American populace. After a television musical debut in the fall of 1957, Edsels were shipped to dealers where they remained under wraps until it was time for the ‘58 model year.
Crazy styling aside, Edsel’s arrival caused some immediate brand confusion in relation to Mercury, and in more limited circumstances, Ford. Much of said confusion occurred in the company’s debut year when Edsel spread the “lots of new models” sauce a little too thin. We start at the brand’s second most basic offering: Pacer.
A few years ago, the industry narrative was that all-electric vehicles would reach financial parity with their combustion-driven counterparts in 2025. The assumption was that this would gradually occur by way of ramping up battery production and leveraging economies of scale. However, reality had a different take, as the world is now confronting record-setting prices across the board. Manufacturer and dealer hikes have resulted in the average invoice of EVs rising to $54,000 — roughly 10 grand higher than the typical transaction price of gasoline-powered vehicles, according to J.D. Power.
With economic pressures spiking the value of all automobiles, hardly anything is leaving the lot for less than it could have been had for in 2020. But the increases seen on all-electric models are actually outpacing the models we’ve been told they’re supposed to replace.
The latest data from Carfax has indicated that roughly 50 million U.S. vehicles presumed to still be in operation still have outstanding recalls that have yet to be addressed. Though the good news is that this represents a 6 percent decline from 2021 and a meaningful 19 percent drop against 2017.
Still, the metrics may not be wholly down to better communication on the part of the manufacturer and people taking recall notices more seriously. Between 2013 and 2015, the average number of U.S. vehicles and equipment subjected to recalls per year went from 26.3 million to 83.6 million. While the annual averages have come back down since, recalls have remained substantially higher than in decades past.
On Monday, General Motors, Ford, Stellantis, and Toyota Motor North America reportedly asked the United States Congress to lift the existing cap on the $7,500 federal tax credit for electric vehicles. Though automakers petitioning the government for free money is hardly new business.
S&P Global Mobility has reported that the average U.S. automobile is now 12.2 years old, which it said represented a 2 percent increase since 2021. While relatively modest, the general trend for the last five years has been for vehicles to get older as drivers attempted to milk more life from beleaguered hardware.
Much of this has been attributed to North America’s broadening wealth gap and general improvements in vehicle longevity. If you look back at Department of Transportation data from the 1990s, the average age of a car was under nine years. By 2007, the typical car would see its 10th birthday before scrappage and the number has continued to climb from there. Much of that is due to households having to make do with tighter budgets, which was arguably made easier by modern powertrains that can easily exceed 100,000 miles before needing any serious maintenance.
Unless you’ve been living under a rock since 2019, you’ve probably realized that just about every major carmaker has plans to go “fully electric” at some point in the rapidly approaching future. That’s going to mean big changes in the way we buy and use cars, obviously— but change is hard, and not every company is going to be willing or able to make those changes.
That equally obvious fact begs the question: who’s not gonna make it?
Datsun is dead again and the likelihood of you having any emotions tied to the matter hinges upon whether or not you were driving prior to the 1990s. Formerly a catch-all brand for Nissan’s exports, the automaker eventually decided to unify its products under a single name when Ronald Reagan was in the White House and Max Headroom was talking up the merits of New Coke on cathode-ray tubed televisions.
While the Datsun moniker would grace the odd pickup on the Japanese domestic market after the 1980s, Nissan planned a compressive relaunch of the brand in 2013. The following year, Datsun became a low-cost car marque for Indonesia, Nepal, South Africa, India, and Russia. A few years later, Kazakhstan, Belarus, and Lebanon were added to the brand’s list of markets. However, Datsun had announced a retreat from Indonesia and Russia in 2019 and has since confirmed that it will be halting production in India later this year — effectively ending Datsun’s existence once again.
Volkswagen CEO Herbert Diess has explained that the automaker would very much like to get back in to the United States’ good graces now that it has cut ties with Russia. With the future of Europe looking shaky, VW is hoping to maintain its position as the best-selling brand in China and start making inroads in America after burning a few bridges there.
Despite the Dieselgate scandal being seven years in the rearview mirror, the automaker is still coping with the resulting financial penalties and the resulting decision to scale back its U.S. aspirations a tad until its electric models hit the road. But the company has always had an issue understanding what American drivers wanted, resulting in boom and bust phases for the company until it manages to solve the puzzle. The most common issue was an inability to adhere to ever-changing emissions standards. But there are also periods where the manufacturer was snubbed for offering subpar electrical equipment or simply having a lineup that was out of sync with American tastes. But Volkswagen has historically enjoyed a resurgence after making the necessary changes and Diess is hoping for another comeback.
The 2022 New York Auto Show isn’t the first major auto show to be held since COVID-19 shut the world down in March 2020 – Chicago had shows in 2021 and 2022, and Los Angeles was in its usual slot last year. And there was Motorbella in Detroit last summer.
Still, for whatever reason – the loosening of COVID restrictions, the fact it was the first New York show since COVID, the presence of NY-based journos who don’t deign to travel west of the Hudson for those other shows – there was a pre-show feeling that this was it. This would be the show that marked the return of normalcy. Not LA in 2021 or Chicago just a couple of months ago – no, it would be this one.
The Biden administration held another meeting with automotive executives about how to ensure electric vehicles go mainstream. But this time it included Elon Musk, who runs the most successful EV brand in the entire world.
After taking criticism for shunning the Tesla CEO in earlier meetings, senior officials held an event on Wednesday where he and other industry leaders could contribute as to how the United States should handle a national charging infrastructure and spur adoption rates. Despite Musk having often expressed a dissenting opinion in regard to President Biden’s strategy, the White House said that the meeting was productive and resulted in a “broad consensus that charging stations and vehicles need to be interoperable and provide a seamless user experience, no matter what car you drive or where you charge your EV.”
Tesla is receiving a lot of attention for having increased prices twice in one week. The Model 3, often presented as the company’s most-affordable option catering to the masses, now starts at $48,440 in the United States. Its crossover equivalent, the Model Y, now starts at a whopping $64,400 while larger products have surpassed the six-figure point of entry. Despite being the brand’s oldest model, the Model S saw increases over the summer (when it was just $90,000) and has since settled into $101,200 before you’ve even said the words Plaid or Full Self Driving. But the Model X remains even more expensive at $116,200.
Worse yet, those who can afford such vehicles won’t even be able to get them in a timely fashion. Despite weathering COVID restrictions rather well vs legacy automakers, supply chain issues seem to have caught up with the EV manufacturer. Wait times on order vehicles are now several months long. Some customers are being told that they’ll likely have to wait until 2023, specifically those hoping to score a Model X.
Tesla CEO Elon Musk has invited the United Auto Workers (UAW) to hold a union vote at the company’s facility in Fremont, California. While this may fool you into believing the executive has had a change of heart in regard to unionization, Musk seems to be inviting the labor group into a trap to dunk on his political enemies.
It’s no secret that there’s been bad blood between Tesla and the Biden administration. The White House has repeatedly left the automaker out of its discussions pertaining to industry regulation and proposed additional financial incentives for automakers using unionized labor to build electric vehicles. As the world’s largest purveyor of EVs by far, Musk believes his organization deserves some acknowledgment and has noted that the UAW is one of the Democratic Party’s staunchest allies. He’s asking for the vote in Fremont because he clearly thinks it will fail.
Speculators on Wall Street (where else?) have been yammering about the possibility of Ford Motor Company creating a second company for its moving-at-light-speed EV business. To that end, CEO Jim Farley had one thing to say on Wednesday:
“We have no plans to spin off our electric business or our ICE business,” he told people assembled on a finance call.