Car Prices Set to Surge Again This Year
What was supposed to be a very good year for the U.S. auto industry didn’t turn out that way in 2021, as automakers battled semiconductor shortages and other problems that repeatedly shut down factories and left showrooms bare. For consumers, that meant record prices and less choice. NBC reports that those hoping the situation will improve in 2022 can think again. At best, industry analysts foresee a modest upturn in sales, and possibly another sharp downturn, while car buyers can expect even more price hikes and more dealer shortages. “Based on what we know today, it will be a challenge to match last year’s sales,” said Dave Gardner, executive vice president of national operations for American Honda. This year, Cox Automotive does see a modest industry rebound, to about 16 million vehicles from 14.9 million last year. IHS Markit is a bit more cautious, at around 15.5 million. But those figures are still well below what was seen prior to Covid. In 2019, Americans bought 17.1 million new cars, trucks and crossovers. For more on the 2022 sales outlook, click here.
To hear more from Honda's Dave Gardner, be sure to register for AIADA's 52nd Annual Meeting and Luncheon here.
Toyota Gives a Glimpse of Redesigned and Luxed-Up Sequoia
Toyota showed the first teaser image of what is expected to be its redesigned Sequoia large SUV, showing only the right rear quarter of the vehicle due late this year. According to Automotive News, the single shot on the brand's media website on Tuesday doesn't reveal much about what will now be the brand's top-end body-on-frame SUV after it pulled the plug on the Land Cruiser last year after a 63-year run. It does reveal reworked LED rear lighting and newly chrome-trimmed rear windows, which would indicate Toyota's efforts to move the Sequoia up market to fill part of the void left by the Land Cruiser. Click here to see it. The Sequoia will be the second of what Toyota refers to as the "Four Brothers" to be redesigned onto the brand's new global F1 body-on-frame platform, following the Tundra full-size pickup, which made the transition last year. The brand's two remaining body-on-frame "brothers" — the Tacoma midsize pickup and 4Runner midsize SUV — are scheduled to make their own transitions onto the F1 platform, with the Tacoma in 2023 and the 4Runner in 2024. Click here for details.
BMW is Killing the V12 Engine This Summer
BMW's V12 is going out with a bang. Well, a dozen bangs. FOX News reports that the German automaker has announced that it will build the last of its 12-cylinder engines this June as it begins its transition toward electrification. BMW will mark the occasion in the U.S. by offering a limited run of a dozen M760i xDrive Final V12 sedans equipped with a 601 hp 6.6-liter V12. The $200,995 cars will come fully loaded and will be available in any color combination BMW offers, but only if you're on the list. BMW said its dealers will be reaching out to customers with long histories of V12-powered 7-Series ownership to offer reservations for the special model. V12-powered BMW's wear special logos and the Final V12 cars will have unique badging. Mercedes-Benz, Aston Martin, Ferrari and Lamborghini are the only other major brands that currently offer V12s, while VW-owned Bentley uses a unique W12 engine configuration in its top models. For the full story, click here.
5,000 Fake Employers Flagged on Car Loan Applications Since 2019: Here's How to Spot Them
More than 5,000 fake employers have appeared on auto loan applications over nearly three years, according to the fraud screening firm Point Predictive. The deception was associated with about $1 billion worth of loan value from February 2019 to December 2021, Point Predictive said Thursday. It estimated fake employer loan application volume grew from about $7 million per month to $35 million per month during that time. "The rise in the use of fake employers on credit applications is astounding, and the $1 billion threshold only proves the growing threat of this problem," Point Predictive senior fraud analyst Justin Hochmuth said in a statement. "We're uncovering about 100 new fake employers that are being created each week." Point Predictive Chief Strategist Frank McKenna told Automotive News on Friday he expected 2022 to be a "pretty significant fraud year" because of factors such as vehicle scarcity and interest rates. Dealers should be particularly vigilant during tax season, between February and May, McKenna said. For more, including the most popular models customers sought to finance using a phony employer, click here.
Europe's EV Drive Comes With Environmental, Social Risks, Stellantis CEO Says
The European Commission's strategy to phase out combustion engines in favor of electric vehicles is a political choice that carries environmental and social risks, Stellantis CEO Carlos Tavares said in an interview with European newspapers. "What is clear is that electrification is a technology chosen by politicians, not by industry," he said. Reuters reports that he added there were cheaper and faster ways of reducing carbon emissions. "Given the current European energy mix, an electric car needs to drive 70,000 kilometers to compensate for the carbon footprint of manufacturing the battery and to start catching up with a light hybrid vehicle, which costs half as much as an EV," he said. He also said a ban on thermal vehicles by 2035 in Europe means carmakers need to start transforming their plants and supply chains quickly. "The brutality of this change creates social risk," he said. For more comments from Tavares, click here.
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