Gas Prices Keep Dropping as Christmas Nears

Gasoline prices in the U.S. are caught between an uptick in holiday travel and the fear of the impact of new variants of COVID-19, resulting in downward pressure on prices. 

Los Angeles gas prices on 11-21-21
The average price for gas in the U.S. is $3.30 per gallon. California averages $4.66 a gallon.

GasBuddy.com, which tracks the price of gasoline nationally, reported the average price of a gallon of gasoline is now $3.30. It dropped by more than a half-cent earlier this week and is down 2.6 cents per gallon from last week

The prices are down 11.5 cents per gallon from last month when prices peaked across the country ahead of the Thanksgiving holiday prior to the appearance of the Omicron variant of COVID-19, which is creating new turbulence throughout the economy. 

Factors in the decline

AAA noted in its weekly report on gasoline prices the demand for fuel increased as consumer confidence jumped heading into the holiday season. However, fears of the COVID-19 omicron variant’s economic impact may threaten future global oil consumption, AAA said. 

President Joe Biden

President Joe Biden noted gas prices have returned to pre-pandemic levels this week.

“A recovering economy coupled with strong employment is leading to increased demand for gasoline,” said Andrew Gross, AAA spokesperson. “This demand increase should drive pump prices higher, but it’s been blunted by the wavering price of crude oil.”

As a result, pump prices fell again last week as crude oil prices wobbled — neither rising steadily nor falling rapidly. The national average for a gallon of gas dipped three cents to $3.30, according to AAA. 

According to recent data from the Energy Information Administration, or EIA, total domestic gasoline stocks decreased by 700,000 barrels to 218.6 million barrels last week, AAA said. 

In addition, fluctuations in the price of crude oil put downward pressure on prices. Last week, crude prices crept above $70 per barrel and if oil prices continue to climb, pump prices will likely follow suit. 

AAA gas chart 12-20-21

Oil prices waver on news 

Overall, crude prices declined last week due to growing market concerns that the omicron variant of COVID-19 will lead to a decrease in demand as governments around the globe increase measures to curb transmission rates. The EIA reported gasoline stocks are 14% lower than mid-December 2020. For this week, crude prices could drop further if omicron concerns carry on. 

Meanwhile, President Joe Biden observed this week in 21 states the price of gasoline is the same now as it was at point in 2019 before gasoline prices sunk on heels of a global recession that followed the outbreak of the COVID-19 pandemic. 

Among the states with the largest declines in prices were Indiana and Michigan where prices dropped by six cents per gallon. In Ohio, Arizona, Illinois it dropped by a nickel per gallon and Florida and Colorado it was down four cents per gallon, according to AAA. 

AAA said the most expensive gasoline was in California, which is generally the case, where it averaged $4.66 per gallon. Prices in Oregon and Nevada averaged $3.86 per gallon.

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Ford Recalls Nearly 185K F-150s

Ford announced it’s recalling almost 185,000 F-150 full-size pickups. The 2021 and 2022 model-year trucks are experiencing driveshaft problems that could cause it to fracture.

All-new F-150
Ford is recalling nearly 185,000 F-150 pickups from the 2021 and 2022 model years.

The issue only affects certain F-150 Crew Cab 4×4 pickups, according to the filing with the National Highway Traffic Safety Administration. The company’s began examining the issue since July.

The truck’s underbody thermal/acoustic insulators can loosen over time. If they come in contact with the truck’s aluminum driveshaft, they can cause scoring or marks. If this goes on long enough, the heat generated each time can eventually crack the driveshaft.

Potential results if the issue is not repaired

“A fractured driveshaft may result in loss of motive power,” the report states, “unintended vehicle movement while the vehicle is in park if the parking brake is not applied, and may result in secondary damage to surrounding components.”

Additionally, once fractured, the driveshaft could break loose and touch the ground, causing the driver to lose control of the pickup, potentially resulting in a crash. The company is unaware of any accidents or injuries caused by the problem.

2021 Ford F-150 - at work site

Some Ford F-150 pickups are facing issues with the aluminum driveshaft on the truck.

Owners are advised to look for a “loose underbody insulator.” They should also listen for a rattling, clicking or clunking noise due to the loose insulator coming in contact with the driveshaft. The scoring or marking on the driveshaft described earlier may also be visible.

Next steps

Ford’s taken steps to resolve the problem during production by swapping the underbody thermal acoustic insulator for an under-carpet thermal patch at the two plants — Dearborn (MI) Truck and Kansas City (KS) Assembly — already.

Dealers received the notice Tuesday, and owners will begin receiving notices in the mail shortly. They will be instructed to make an appointment with their dealer to have “positive attachment features adde to the underbody insulators.”

They’ll also inspect the driveshaft for scoring or marks that may have already occurred. This will be done at no expense to the truck owner.

As of Dec. 7, Ford received 27 reports of fractured aluminum driveshafts possibly related to sagging underbody insulators on the F-150s, the automaker said in an Automotive News report.

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NHTSA Opens Investigation into Tesla Gaming Software

Patton plays games driving Model 3
Journalist Vince Patton demonstrates its possible to play video games while driving his Tesla Model 3.

The National Highway Traffic Safety Administration (NHTSA) it is investigating 580,000 Tesla vehicles sold since 2017 that allow those seated up front to play games on the infotainment touchscreen while the vehicle is in motion.

The investigation stems from a complaint filed with agency earlier this month by Vince Patton, a retired journalist from Portland, Oregon.

The formal safety investigation, which was announced Wednesday, covers 2017-2022 Tesla Model 3, S, X, and Y vehicles. NHTSA opened the investigation “based on reports that Tesla gameplay functionality, which is visible on the front center touchscreen from the driver’s seat, is enabled even when the vehicle is being driven.”

Tesla made the software more dangerous

The 2021 Tesla Model S gets an all-new interior, a yoke-style steering wheel and the updated software being investigated by NHTSA.

The feature, known as “Passenger Play,” increases the risk of a crash. Since December 2020, the feature can be used while driving. Prior to that, it could only be used when the vehicle was in Park. The agency said that it is evaluating aspects of the feature, including how frequently it’s used and when.

NHTSA is concerned about distracted driving, an increasing risk as automakers bring increased online connectivity to infotainment touchscreens. Distracted driving caused 3,142 deaths in 2019, all of them preventable. 

While Passenger Play does have a warning stating the game is meant solely for passengers. Although it asks for confirmation that the player is a passenger and not the driver, there is nothing preventing the driver from playing while driving.

Other Tesla safety issues

Consumer Reports criticized the performance of Tesla’s latest version of Autopilot.

It’s not NHTSA’s only Tesla safety investigation, nor Tesla’s only safety issue.

In August, the agency opened a formal safety investigation of 765,000 Teslas equipped with its Autopilot driver-assistance system after 11 crashes involving parked emergency vehicles killed one person and injured 17. The inquiry covers 2014-2021 Models S, X, Y and 3. 

In October, Tesla had to roll back full self-driving, or FSD, with Musk revealing that the company is “seeing some issues with 10.3, so rolling back to 10.2 temporarily.” 

And in November, Tesla issued a recall for 11,704 vehicles sold in the U.S. since 2017. The recall covers Model S, X, 3 and Y vehicles and came about as a result of an over-the-air firmware update of the automaker’s “Full Self-Driving Beta,” its advanced driver assistance system.

The company identified a software communication error that could cause the forward-collision warning or automatic emergency brake system to falsely activate, possibly leading to a rear-end collision.

Other OEM infotainment issues

2022 Mercedes EQS 580 4Matic black daytime

The new Mercedes-Benz EQS was recalled after it was found that its MBUX system allowed television and internet to be displayed while driving

Other automakers are far more concerned over distracted driving than Tesla. On November 29, Mercedes-Benz recalled 227 vehicles in the U.S. after the company discovered that its MBUX infotainment system allowed television and internet to be displayed while driving.

The recall affected 2021 Mercedes-Benz S580, 2022 EQS450, EQS580, and S500 models. Mercedes-Benz has already corrected the problem, and no deaths or injuries seem to have resulted from the problem.

Musk pays billions to satisfy tax bill

In other Tesla news, Reuters is reporting that Tesla CEO Elon Musk sold 10% of his own company stock, 13.5 million shares, 8.06 million of which were sold to pay taxes. The billionaire said he is paying more than $11 billion in taxes this year. 

Tesla CEO Elon Musk

Tesla CEO Elon Musk slammed California over its tax policy.

“California used to be the land of opportunity and now it is … becoming more so the land of sort of overregulation, overlitigation, overtaxation,” Musk told Reuters, adding his combined federal and state tax rate tops 50 percent.

The tax bill may explain why Musk recently relocated Tesla’s headquarters to Austin, Texas from Palo Alto, California.

But taxes aren’t Musk’s only concern.

The company has submitted all the documentation required to get its factory approved near Berlin, Germany. Approval of Tesla’s newest manufacturing facility has been delayed by environmental concerns and red tape due to Tesla’s decision to add a battery factory to the site. That has delayed the approval process. It remains unclear when the new plant is expected to open.

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GM Wants to “Electrify Everything”

As part of a $37 billion program, General Motors plans to bring at least 30 battery-electric vehicles to market by mid-decade — but it is expanding its electrification strategy to power up pretty much anything “already on the road,” as well as on the water, it announced on Wednesday.

GM EV Components Textron GSE tug
GM looking to electrify “everything,” including offering conversion kits as well as packages for vehicles like this jet tug.

The largest of the Detroit automakers’ Electric Connect and Cruise eCrate systems will allow owners to swap out their conventional gas engines in classic vehicles like the Camaro and E-10 pickup for battery-drive technology. GM also is looking to power up cargo tractors and other airport gear, while also working up ways to bring electric propulsion to the marine industry.

“GM has an established strategy, network of integrators and co-development agreements to apply an extensive array of components and solutions to a broad range of customers and use cases,” said Travis Hester, GM vice president of Electric Vehicle Growth Operations, in a statement Wednesday.

The carmaker estimates there’s a “total addressable market” for swapping conventional drive systems for battery power that could approach $20 billion by 2030.

“As companies across many industries look to reduce their environmental impact, GM is uniquely positioned to serve as a leader not only through exciting new EVs across our brands, but through additional technology applications,” said Hester, “and we look forward to bringing customers — existing and new — along with us on our zero-emissions journey.”

SEMA K5 Blazer EV front

Chevrolet showcased a 1977 K5 Blazer converted to all-electric propulsion at SEMA360 in 2020.

Converting to electric

Demand for conversion technology is already on the rise. There’s been a flood of startups converting classic vehicles, including vintage Camaros, Porsches, Volkswagens and Land Rovers, to run on battery power.

GM targeted the conversion market with the launch of the eCOPO Camaro project car at the SEMA Show several years back, and has revealed other project cars like Project X and the 1977 K-5 Blazer. It is getting ready to provide what are essentially plug-and-play packages, like the Cruise eCrate and Electric Connect, to simplify the process. The goal is to allow owners and conversion companies to make a swap with a minimum of effort.

The Detroit automaker isn’t the only one sensing an opportunity here, however. Ford recently demonstrated the potential for its own Mach-E crate motors, which, as the name implies, uses hardware and software borrowed from its Mustang Mach-E battery-electric SUV. The conversion package can be plugged into classic products such as a 1978 Ford F-100 pickup. Volkswagen and Tesla have also gotten into the game, the latter automaker’s electric drive technology used by one conversion fan on a Rolls-Royce once owned by Johnny Cash.

Multiple applications for electric motors

But GM’s strategy isn’t limited to road-going vehicles.

It’s teaming up with Textron Ground Support Equipment Inc., a Textron subsidiary, to power up ground support equipment like the cargo and baggage tractors, belt loaders and Tug equipment found at commercial airports. Electrifying those vehicles promises to reduce emissions, as well as operating costs, while improving reliability, experts claim.

GM electric expansion graphic Dec 2021

Commercial fleets, in general are showing strong interest in making the switch to battery power. GM this month began delivering the first of its BrightDrop delivery vans, joining competitors like Ford and Rivian in a market that could rapidly grow this decade, according to industry forecasts.

The opportunity to electrify isn’t limited to ground vehicles, however. A number of manufacturers are looking at ways to harness battery and hydrogen fuel-cell technology for other transportation and cargo applications. Rolls-Royce recently set a speed record with an aircraft outfitted with one of its drive systems. Airbus just released plans for a hydrogen turbofan system.

GM sees big opportunities coming in the marine world. It recently announced a strategic investment in the Seattle-based Pure Watercraft. The move, the automaker said, “represents an opportunity to bring EV technology to the marine industry and help preserve enjoyment of the outdoors for future generations. Together, the two companies will develop and commercialize battery electric watercraft, to accelerate the transition to electric mobility.”

GM also has been exploring ways to electrify the rails. Last June it announced another partnership with Wabtec, one of the largest providers of freight locomotives. Under a non-binding agreement, the automaker will provide both battery and hydrogen fuel-cell systems for prototypes like the Wabtec FLXdrive. Eventually, the technology could replace the conventional diesel-hybrid systems that dominate the rails today.

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Nikola Paying $125M to Settle with SEC

Nikola Corp. agreed to pay $125 million to settle civil charges levied against the company by the Securities and Exchange Commission claiming it defrauded investors by making false claims about its vehicles. 

Nikola CEO Trevor Milton t-shirt
Nikola’s settlement with the SEC still holds the company accountable for statements made by founder Trevor Milton.

The deal is separate from the civil and criminal charges against Trevor Milton, the company’s founder and now-former Chairman. In fact, the company’s agreed to cooperate with any current investigation and litigation, however, it didn’t admit or deny the SEC’s findings in the settlement.

The agency contends the company misled investors about the capabilities of its hydrogen fuel cell-powered vehicles, suggesting they were further along in development than they were. The focal point being a video of its Nikola One appearing to be driving under its own power, when it was actually rolling down a slight decline.

The video became the centerpiece of a report by short-selling research firm Hindenburg Research claiming Nikola was based on “intricate fraud built on dozen of lies” perpetrated by Milton. That quickly triggered an SEC probe and led to the decision by Milton to resign on Sept. 21.

Nikola agreed to pay the $125 million in five installments over two years. The first payment comes by the end of this year, with the remainder being paid in semi-annual installments in 2022 and 2023. The company previously disclosed Nov. 4, 2021 it took a $125 million reserve in its third quarter earnings to account for the expected settlement. 

Nikola Motor Chairman Trevor Milton
Nikola Motor’s former Chairman Trevor Milton is facing civil and criminal charges in court.

Milton not off the hook

Nikola “is responsible both for Milton’s allegedly misleading statements and for other alleged deceptions, all of which falsely portrayed the true state of the company’s business and technology,” said Gurbir Grewal, the SEC’s enforcement director, in a statement.

Milton saw civil and criminal charges filed against in July, claiming he used social media to repeatedly mislead investors about the company’s technology, netting “tens of millions of dollars” in the process. Milton’s repeatedly denied wrongdoing and is in the midst of a court battle.

Audrey Strauss, the acting U.S. Attorney for the Southern District of New York, said during a press conference in late July, Milton deliberately set out to deceive what she described as “retail investors” by making claims he knew were false about Nikola products.

While Nikola’s settled up with the SEC, it’s now focused on its former leader.

Nikola Tre Class 8 semi
The company’s attempting to move on from the problems. In fact, it delivered its first battery-electric Tre Class 8 rigs last week.

“The company has taken action to seek reimbursement from its founder, Trevor Milton, for costs and damages in connection with the government and regulatory investigations,” the company said in a release.

Moving forward

“We are pleased to bring this chapter to a close as the company has now resolved all government investigations,” the company said in a statement. 

“We will continue to execute on our strategy and vision to deliver on our business plan, including delivering trucks to customers, expanding our manufacturing facilities and our sales and service network, and building out our hydrogen infrastructure ecosystem including hydrogen production, distribution and dispensing stations.”

This is already happening as it delivered the first Nikola Tre battery-electric pilot trucks to Total Transportation Services Inc. (TTSI), a Southern California’s port trucking company, to expedite zero-emission transportation solutions at the ports of Los Angeles and Long Beach.

The company is engaged in a four-truck pilot program with the trucking company, involving two battery electric trucks with a range of 350 miles and two fuel cell-electric trucks with a range of 500 miles. If the vehicle trials go well and TTSI obtains government funding, the company will provide 30 BEVs in 2022, and 70 FCEVs are anticipated to start in 2023.

First Look: 2022 Rolls Royce Ghost Black Badge

Who would have thought you could make the Rolls-Royce Ghost look so sinister?

Rolls-Royce revealed a new addition to the Rolls-Royce Ghost line-up in Miami Thursday — the Black Badge — during a North America dealer meeting that saw about 100 retailers meet with the automaker’s top executives. 

The automaker revealed the new model to dealers at the Mad nightclub in the hip and trendy Wynnewood section of Miami, and will do the same for customers later this week.

“We just felt this was very Black Badge,” said Richard Carter, director of communications for Rolls-Royce Motor Cars. “It’s very, noir; It’s very alternative; and that’s the essence of Black Badge.”

The Rolls-Royce Ghost Black Badge expands a line-up that began with the Wraith coupe, followed by the Phantom sedan in 2016, the Dawn cabriolet in 2017 and the Cullinan SUV in 2019. The murdered-out Black Badge models now account for more than 27% of Rolls-Royce sales worldwide, including 40% of Cullinan sales.

The darker side of opulence

To realize the Ghost Black Badge’s menacing demeanor, the company uses 100 pounds of the industry’s darkest black paint. The Spirit of Ecstasy and Pantheon Grille are darkened using a chrome electrolyte applied during chrome plating. The new model wears exclusive 21-inch wheels with as many as 44 layers of carbon fiber.

The 2022 Rolls-Royce Ghost Black Badge can be had in more that 44,000 different hues, although most Black Badge customers choose black.

As you’d expect, interior components are darkened including air vents and the wood veneer, along with Black Badge badging and other unique interior touches, although clients are free to specify any number of colors and trim to be used on the car’s interior.

Engineers also contributed, fitting larger air springs to alleviate body roll during assertive cornering. There’s also roughly 29 additional horsepower and a revised transmission to make the Black Badge a bit more athletic. They also reduced brake pedal travel.

A quick turn behind the wheel of pre-production prototypes revealed a car that can be driven more aggressively than your average Ghost. Grip is impressive while cornering, staying firmly planted despite some noticeable body roll. Body motions never become excessive, and rebound over bumps is very well controlled. Yet its agility doesn’t come at the expense of the brand’s legendary comfort.

An idea born in Beverly Hills

The idea of Black Badge occurred in 2014 in Beverly Hills.

“This whole notion of the alter ego of Rolls Royce, the slightly noir, naughty, edgy side of Rolls Royce is something that we were thinking about. We were looking at ways and means of lowering the age profile of our brand,” Carter said.

The Pantheon Grille and Spirit of Ecstasy also receive the Black Badge treatment.

At the time, the brand had one model, the Phantom, and an average buyer’s age of 57. “We were selling one model to a dying set of customers, and there was no future in that,” he said.

At the time, the company was about to release the first-generation Ghost, followed by its two-door spinoff, the Wraith, both of which would attract younger buyers. But the company needed more. They were searching for an idea, but hadn’t settled on anything yet.

Torsten Müller-Ötvös, chief executive officer, Rolls-Royce Motor Cars, was waiting for a car to pick him up at the SLS Hotel in Beverly Hills when a murdered-out Phantom Coupe pulled up. Ötvös was stunned, and asked the owner why he modified his Phantom.

“He told me over the weekend, that he wants to be a different kind of character,” Ötvös said. “For some of the week, he is friendly and nice. But over the weekend, he wants to be something different. He enjoyed playing a different role; how he was dressed, looked and talked.” 

A couple weeks later, Ötvös had similar experiences particularly in the United States, particularly in California. This led to the creation of Black Badge at a time where murdered-out cars weren’t mainstream.

A surprising success

The Ghost Black Badge is revealed for the first time at the Mad nightclub in Miami.

Initially, executives expected Black Badge models to have a 10%-15% take rate. But they were mistaken. It turned out to be a stunning success, with a far higher take rate. Currently, Black Badge represents 40% of Cullinan sales. Black Badge, along with new models like Ghost, Wraith and Cullinan, have brought the average Rolls-Royce buyer’s age down to 43, quite a large drop in a little less than a decade. 

“We are even younger than Mini as a brand in the BMW Group,” Ötvös said, who then explained that the type of wealthy car buyer has changed. 

“When you look into ultra-high net worth individuals, those people who are our target group worldwide, they became younger and younger over time because the way to generate wealth is very, very different from what it used to be 15-to-20 years ago.”

Rolls-Royce sees its Black Badge line as one that appeals to iconoclasts, a type of buyer that the brand has always attracted, particularly during the pre-World War II years, when all coachwork was custom built.

“Black Badge was the most instrumental piece we had in an all-new brand strategy to massively decrease the average age and illuminate the brand in a significant way,” Ötvös said. 

Mission accomplished.

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First Look: Mitsubishi Outlander PHEV

The new Mitsubishi Outlander already has proven to be one of the most important products the long-struggling automaker has launched in its bid to become relevant to U.S. motorists again. Now, Mitsubishi is hoping to gain even more traction with the upcoming launch of a plug-in hybrid version.

2022 Mitsubishi Outlander Hero Image
The gas-powered 2022 Mitsubishi Outlander made its debut in February.

The Japanese automaker claims it will yield more range than the old Outlander PHEV, at an estimated 87 km, or nearly 55 miles, per charge — though that’s using the global WLTP test cycle and will likely come down once the American version is tested by the EPA.

“With low (carbon dioxide) emissions and environmental impact from manufacturing and use,” said Takao Kato, MMC’s president and CEO, “the all-new Outlander PHEV model can be considered the best solution for carbon neutrality today.”

Updated, upgraded drivetrain

The Outlander was first introduced in 2001 and, with the fourth generation, it has become a core part of the brand, accounting for about 20% of its global volume. The first plug-in hybrid version was unveiled at the 2012 Paris Motor Show. It produced a combined 197 horsepower by pairing a 2.0-liter inline-4 gas engine with twin 60-kilowatt electric motors drawing power from a 12 kilowatt-hour lithium-ion battery pack.

The new Outlander PHEV gets numerous powertrain upgrades, though the automaker isn’t releasing hard specs yet. In a statement announcing the new vehicle it said the plug-in gets “an increase of around 40% in the output of the front and rear motors and drive battery.” The lithium-ion pack, it did note, jumps to 20 kWh. The gas engine, added a spokesman, is a “slightly updated” version of the old PHEV’s 2.4-liter package.

Mitsubishi Outlander PHEV charging port 2022

The new Outlander plug-in hybrid will arrive in the U.S. in the second half of 2022.

Mitsubishi also revealed, “The power drive unit for the front motor is newly equipped with a booster function which bolsters driving force by raising the supply of voltage to the front motor while simultaneously improving electricity consumption by raising the efficiency of the generator.”

Third row added

The automaker also took steps to downsize some of the hardware, notably the rear motor and control unit. As a result, the new plug-in will gain room for a third row yielding space for seven occupants.

The drive system now will allow One-Pedal Driving, as well, a feature that effectively allows motorists to minimize the need to jump from throttle to brake when driving in light to moderate traffic. That feature was found to be extremely popular with EV owners, according to the recent J.D. Power Technology Experience Index.

With only modest tweaks, the plug-in adopts the same exterior and interior design as the gas-powered Outlander. The overall strategy is based on a concept dubbed “I-Fu-Do-Do,” which means “authentic” and “majestic” in Japanese.

New design

Mitsubishi Outlander PHEV badge 2022

The new Outlander PHEV is expected to travel more than 55 miles in electric-only mode.

The fourth-generation Mitsubishi Outlander adopted a new styling language called “Dynamic Shield.” Up front, it features a more upright nose with a pinched, dual-level grille and stacked headlamps. From the side, the SUV features a more deeply sculpted silhouette with a bit of a floating roof element.

The automaker clearly wanted to give the new Outlander a more solid and robust look, with such touches as 20-inch wheels and tires and what it calls the Hexagon Guard rear end.

The new SUV grew larger in virtually all dimensions, the width expanding by 2 inches. That means the cabin of the new Outlander is both wider and more spacious than the outgoing model, Mitsubishi adopting more upscale materials and features like tri-zone climate controls, real aluminum panels and a 12.3-inch touchscreen infotainment display.

The gas-powered Outlander is powered by a 2.5-liter inline-4 that bumped up power by 8.9 percent. At the same time, it reduced fuel consumption by 2.6 percent.

Pricing TBD

Many of the features from the current model are expected to carry over into the PHEV, though Mitsubishi hasn’t provided specific details. The gas model offers Hill Descent Control and Trailer Stability Assist. A Multiview camera system helps drivers see what’s around the vehicle, whether on-road or off. Other features for the new Mitsubishi Outlander include a power-operated panoramic roof and an electrically operated tailgate that can be opened with a kick of the foot under the rear bumper.

Pricing for the gas model starts at $25,795 — plus $1,195 in delivery fees. Pricing for the PHEV is expected to run higher, though the numbers won’t be released until closer to sales launch. That holds for a variety of other specs, including U.S. range, power and performance.

“Sales will commence in Japan on Dec. 16, followed by Australia and New Zealand in the first half of 2022 and North America in the second half of 2022,” Mitsubishi said in a statement. While it did not offer specifics, that would suggest that the Outlander PHEV will be marketed as a 2023 model in the U.S.


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Geneva Motor Show Delayed until 2023

The Geneva Motor Show for 2022 has been cancelled, organizers blaming the ongoing impact of the COVID-19 pandemic. 

Koenigsegg Regera Geneva 2020
Officially cancelled in 2020, the Geneva Auto Show still went on, albeit virtually.

The event was originally scheduled to take place next February. The move came despite shows in Chicago and Detroit occurring in recent months, although the New York International Auto Show elected to cancel its 2021 event scheduled for late August.

“We have pushed very hard and tried everything to reactivate the Geneva International Motor Show in 2022,” said Maurice Turrettini, president of the Comité permanent du Salon international de l’automobile, which organizes the event. 

“Despite all our efforts, we have to face the facts and the reality: the pandemic situation is not under control and presents itself as a big threat for a large indoor event like GIMS. But we see this decision as a postponement, rather than a cancellation. I am confident that the Geneva International Motor Show will come back stronger than ever in 2023.”

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Honda Targets 70,000 Annual Sales for Prologue EV — Depending Upon “Fair and Equitable” U.S. Incentives

Honda expects to sell 70,000 of its Prologue battery-electric vehicles annually after its launch in 2024 — but today warned it could fall short if federal lawmakers fail to take a “fair and equitable” approach to the new EV incentive program now being debated in Congress.

Honda Prologue teaser logo
Honda’s been teasing its all-electric Prologue sport-utility vehicle.

The Honda Prologue will be one of two BEVs that the carmaker plans to launch mid-decade, both developed and manufactured as part of a joint venture with General Motors. That’s part of its goal of having BEVs and other zero-emission vehicles account for 40% of its sales by 2030. Honda plans to subsequently introduce more BEVs of its own design.

“Launching our first volume BEV in 2024 is the start of an exciting new direction for Honda,” Dave Gardner, executive vice president of National Operations at American Honda Motor Co. Inc. said in a statement. “We are working with our dealers to plan the transition from sales of primarily gasoline-powered vehicles to selling 100% electric vehicles by 2040.”

Honda wants more money from Congress

President Joe Biden recently set a target that would have BEVs, PHEVs and fuel-cell vehicles, or FCVs, account for 50% of U.S. sales by 2030. To get there, the president is asking Congress to help fund a nationwide network of 500,000 chargers. Congress, meanwhile, is working up new EV sales incentives. But that has generated significant controversy as a plan approved by the House Ways & Means Committee would not only extend the current, $7,500 tax credits but add $5,000 for EVs and batteries built in the U.S. using union labor.

Honda last week condemned those provisions, sending a letter to Congressional leaders arguing that the plan “discriminates among EVs made by hard-working American auto workers based simply on whether they belong to a union.”

While a target of 70,000 Prologues may not seem like much compared to Tesla’s numbers, it equates to an average year for the Honda Pilot.

In the statement issued today, it followed up by saying reaching its 40% zero-emission target for the U.S. is “contingent upon fair and equitable access to state and federal EV incentives intended to encourage American consumers to purchase electric vehicles.”

Coming from behind

Honda was a pioneer of automotive electrification. Its original Insight, a high-mileage two-seater, was the first mass market hybrid to go on sale in the U.S., beating the Toyota Prius to showrooms by several months.

It briefly introduced a limited-volume battery-electric model, the EV Plus, in the late 1990s. And it followed up, nearly two decades later, with a battery-powered version of the Clarity line. That low-range model was dropped in 2020.

The automaker has come under increasing pressure to bring out a long-range BEV with key competitors like Toyota, Ford and even Subaru and Mazda getting into the growing electric vehicle market.

In April, Toshihiro Mibe, who became global president and CEO earlier this year, set a goal of having all Honda vehicles powered by some form of battery and hydrogen drive system by 2030. They are expected to generate 40% of its North American sales by the end of the decade, 80% by 2035, and 100% by the end of the next decade.

Honda turns to its partner

The GM-Honda relationship began more than two decades ago.

To speed up the process, Honda turned to General Motors — the two traditional rivals already having several joint ventures in the works, including one focused on fuel-cell technology, another on autonomous vehicles.

“Leveraging strategic partners to achieve scale and mitigate initial investment requirements” will let Honda bring a competitive battery-car to market sooner than it could on its own, Gardner acknowledged during a media briefing in June. “Our zero-emission focus has begun,” he said.

While the 70,000 sales target might seem modest compared to the volumes some new BEVs — particularly those from Tesla — are generating, the figure is roughly in line with annual demand for the Honda Pilot SUV.

A regional approach to sales

When it launched the original EV Plus, Honda focused primarily on the California market, the largest for BEVs. While manufacturers like Tesla, General Motors, Ford and Nissan now are rolling out their battery-electric cars nationwide, Honda plans to continue focusing on select markets with Prologue.

Honda put an end to its battery-electric Clarity sedan in 2020.

“Honda’s initial approach to selling the Prologue will be regional, focusing on California and the ZEV states, including the BEV-friendly Sunbelt states of Texas and Florida,” it said in a statement today. “Honda anticipates these regions will represent the bulk of sales at the onset of launch due to higher customer acceptance and regulatory requirements.

“As EV infrastructure expands and customer interest grows nationwide, the company will rapidly expand sales and marketing efforts to other areas of the country.”

More to come

The automaker has provided no specific details about Prologue’s drivetrain beyond the fact it will share the Ultium battery technology GM will launch later this year, starting with models like the GMC Hummer pickup and Cadillac Lyriq SUV. That would suggest that Honda’s electric SUV will deliver at least 250 miles or more of range between charges.

Honda has been completely mum about the second vehicle to come from its GM alliance. But it did note that subsequent battery-powered cars will rely on its own new e-Architecture. That is expected to follow the same skateboard-style approach used for Ultium, with its batteries and key drive components mounted below the load floor.

Dealers Running Dry, Even as GM Set to Halt Production for Two Weeks

The shortage of microchips continues to drag on, forcing General Motors to idle virtually all of its North American production operations for as long as two weeks — though the automaker could yet extend this latest shutdown.

Wentzville Assembly
General Motors is basically shutting down its North American manufacturing operations due to the chip shortage.

GM is just one on a long list that includes virtually every automaker hit by the shortage — and its impact is being felt just about everywhere, from Stuttgart to Detroit to Beijing.

Industry planners hoped to put the shortages behind them by now. Barely a month ago, GM had signaled it had come up with new sources for some of the chips it needed. But that clearly didn’t meet its requirements.

No light at the end of this tunnel

The automaker will either close or extend closures at plants, such as the one in Wentzville, Missouri producing its Chevrolet Colorado and GMC Canyon pickups, another in Canada building the Chevy Equinox SUV, and the Ramos Arizpe facility in Mexico that assembles products like the Chevy Blazer SUV. All four of its North American brands will feel the heat.

Like some of its competitors, the automaker had been partially assembling vehicles, where possible, and then storing them until it could come up with the missing chips and electronic components. So, in some instances, GM will try to take advantage of the upcoming closures. It has secured enough chips, in some cases, to let it “repair and ship unfinished vehicles,” it said in a statement.

Wentzville Assembly
GM’s Wentzville plant, which produces its midsize pickups, is on the list to go down.

It was not revealed just how much production GM will lose due to the coming closures but some of those plants routinely produce more than 60 vehicles an hour on two or three shifts, many working overtime — when possible — to help rebuild inventories already drawn down as a result of last year’s pandemic closures.

Empty lots

Company officials indicated GM dealers now have barely half their normal stock of cars, trucks and crossovers which, this time of year, would run between 60- and 70-days’ supply.

Among the dealers TheDetroitBureau.com talked to, some indicated they have less than 10 vehicles in stock and are not sure when they will get more, especially when it comes to popular product lines like the Chevrolet Silverado and GMC Sierra pickups.

And they’re not alone. Toyota has barely 10 days worth of some of its most popular vehicles, like the RAV4 SUV. The automaker last month warned it would cut global production by 40% this month, so shortages could, if possible, get even worse. In recent days, Stellantis, Nissan and Ford, among others, have announced further cuts.

GM Ramos Arizpe plant
The company is idling its Ramos Arizpe facility in Mexico where it builds the Chevy Blazer.

Consumers paying the price

In turn, customers have been forced to either wait, extend their search or, in many cases, pay at or above sticker price. Some social media reports have highlighted dealer surcharges ranging anywhere from $5,000 to as much as $40,000 above MSRP.

That helped drive average transaction prices to a record of more than $41,000 in July, according to Cox Automotive, J.D. Power and other analysts. The figure is widely expected to have run even higher in August.

Sales for the month came in at an estimated, annualized rate of about 13.1 million, down from as high as 18.5 million earlier in the year.

The Labor Day weekend is normally one of the busier holidays at U.S. dealer showrooms but there is little hope, according to industry insiders, that it will generate anywhere near the normal levels seen in past years.