With the last several months delivering record-breaking fuel prices, as society endures what has undoubtedly been the largest spike in energy cost and inflation since the 1970s, everyone has been hoping to catch a break this summer. Some have even gotten theirs. While things are still looking exceptionally bleak in the long term, the United States appears to be enjoying a modest reprieve.
J.D. Power has released its U.S. Initial Quality Study for 2022 and the prognosis could be better. Automobiles are reportedly becoming less reliable and more expensive. While there are certainly valid reasons for this — ongoing supply chain problems, companies transitioning to novel electric powertrains, and remote working environments making it hard to collaborate on engineering — the bottom line is that the whole industry is blowing it.
Younger drivers have reportedly had it with the dealership experience, with Gen Z even more disenfranchised than Millennials. Though it’s difficult to imagine anybody visiting a showroom within the last 12 months having any other reaction. Incentives are down, prices are up, and there’s a good chance whatever you wanted to buy isn’t going to be on the lot anyway. Someone saying they had an exemplary dealer experience is becoming about as common as people claiming they enjoy going to the DMV.
However, CDK Global Inc. still opted to conduct a survey in the hopes of determining just how much less tolerant younger shoppers might be compared to older generations. The takeaway probably isn’t going to shock you, even if the sheer volume of first-time buyers that don’t care for dealerships might. Read More >
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. Read More >
Researchers with the University of California, Berkeley, are pouring cold water of the premise that electric vehicle charging stations will require less maintenance than traditional fueling solutions. The study, which examined 657 individual connectors between 181 public fast-charging stations in the San Francisco Bay area found that about 23 percent were nonfunctional.
That seems quite a bit higher than the number of fuel pumps that might be down at any given station, though the pertinent question is why those EV charging points were inoperable. Read More >
The U.S. light-vehicle market doesn’t appear to be in the best health. While many automakers now opt against issuing monthly sales reports, those that still do are posting some pretty brutal numbers.
This does not bode well for an industry that seemed pretty certain that 2022 would be its recovery year. However, it is on-brand with the slew of announcements made by manufacturers warning about supply constraints and an inability to manufacture at scale. There has also been a growing sense that some consumers may be shunning vehicles that have spent the last several months trading well above what seems rational. Wholesale pricing actually declined by roughly 6 percent since the January record. Though you may not see that represented on dealer lots or even have noticed if it was because last month still saw transactions averaging 14 percent higher than they were last year. Read More >
While the semiconductor shortage was long considered the excuse par excellence for why the automotive sector couldn’t produce enough vehicles during the pandemic, some manufacturers have begun pivoting to blaming supply chains that have been stymied by Chinese lockdowns. Toyota is probably the best-known example. But the matter is hardly limited to a singular automaker and market analysts have already been sounding the alarm bell that strict COVID-19 restrictions in Asia will effectively guarantee prolonged industrial hardship around the globe.
Back in April, Shenzhen was emerging from a month-long lockdown. However, the resulting downtime severely diminished the tech hub’s output which exacerbated global component shortages. While Chinese state-run media claimed regional factories maintained full-scale production during the period, the reality was quite a bit different. Meanwhile, Shanghai has remained under harsh restrictions since March and more look to be on the horizon. As an important industrial center and the world’s busiest port by far, the situation has created an intense backlog of container ships that are presumed to create some of the sustained problems that we’re about to explore. Read More >
While plug-in vehicles are catching on in Europe, representing 21 percent of all new registrations in the first quarter of 2022, they’ve been less popular in the United States. Only about 5.2 percent of American registrations were of the plug-in variety (representing hybrid and purely electric vehicles) during the same timeframe. Despite the industry spending billions to develop and market these vehicles, with some progress being made, the overall take rate within North America remains underwhelming.
Ardent fans of battery based powertrains will undoubtedly disagree. But a couple of studies came out this month that drove the point home. Autolist’s Annual Electric Survey dropped earlier this month, effectively outlining why EVs haven’t been able to make more headway in the states. Read More >
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. Read More >
The latest data from the National Highway Traffic Safety Administration (NHTSA) is confirming what local agencies have already been suggesting. Last year represented another sizable increase in U.S. roadway fatalities, pitching up by 10.5 percent over the elevated death rate witnessed in 2020. The agency has estimated that 42,915 people were killed in 2021, whereas 2020 resulted in 38,824 fatalities — a 7.1-percent increase over the declines seen in 2019. While the current situation is not nearly as bad as the rates witnessed during the 1970s, this still represents the highest per capita fatalities in sixteen years and everyone is trying to get a handle on why.
Traffic deaths have been on the rise since the start of the pandemic, confusing everyone who counts crashes because the supporting data also shows that there was a lot less driving being done during the period. Historically, years where people are disinclined from hitting the road due to a beleaguered economy tend to represent far fewer traffic-related fatalities. We can see this happening in 1942 when the U.S. braced itself to enter World War II by rationing everything from fuel to rubber. Another glaring example takes place in 1932, as the nation reached the darkest point in the Great Depression. In fact, there are very few examples of per capita improvements in on-road deaths from the pre-war period, and those that do exist coincide directly with economic recession. Read More >
Toyota will be launching nine new studies over the next five years to improve automotive safety, specifically in relation to how drivers engage with advanced driving aids equipped to modern vehicles. While the press release to a back seat to the automaker receiving an award for hiring female engineers and a $400,000 donation to the National Environmental Education Foundation, it’s likely to have broader ramifications on the industry.
Despite launching a bevy of new assistance features over the past few years, manufacturers haven’t actually spent all that much time studying how they might impact the act of driving. Testing usually focuses on ensuring the system functions, with independent research being left to examine how electronic helpers might influence behavior from behind the wheel. Unfortunately, preliminary studies have suggested that they lull motorists into a false sense of security, potentially offsetting any legitimate safety advantages the relevant technologies provide. Read More >
The Insurance Institute for Highway Safety (IIHS) is claiming that individuals shopping for a secondhand automobile end up learning less about the modern features lurking within their automobiles. Considering salespeople have meetings about how best to hype the advanced driving aids in new models, this one really shouldn’t have required a survey for the IIHS to piece it together. But the outlet appears to be attempting to link this alleged lack of knowledge to make claims that it’ll somehow contribute to the probably of used vehicles being involved in a crash.
“Used car buyers were substantially less likely than new car buyers to know about the advanced driver assistance features present on their vehicles,” stated IIHS Senior Research Scientist Ian Reagan, the author of the study. “They were also less likely to be able to describe how those features work, and they had less trust in them. That could translate into less frequent use, causing crash reductions from these systems to wane.” Read More >
Nobody should envy car shoppers right now. With production shortages ongoing, there’s never anything you want on the lot, and what is there is likely to be grotesquely overpriced.
This has encouraged consumers to wait longer before replacing their current ride, which is statistically likely to be far older than years past. But not everyone has the same level of patience or financial wellbeing, meaning certain parts of the country are seeing longer intervals between cars than others. There are also regional inventory disparities to account for, encouraging analytics firm Growth from Knowledge (GfK) to conduct an investigation into which parts of the United States are waiting for the longest to procure a new automobile. Read More >
Despite the automotive industry collectively promising to commence deliveries of self-driving cars in 2019, autonomous vehicles have remained test platforms for technologies that don’t yet seem ready for mass consumption. Public perception of the concept has also endured a few setbacks after several fatalities involving partially autonomous vehicles received national media attention. Today, the relevant technologies have failed to mature as swiftly as indicated and there are a whole host of legal ramifications to contend with.
Selling an automobile that’s marketed as being able to drive itself (even partially) are exposing automakers to a whole new demographic of lawsuits, so they’re desperate to install failsafe measures that places the onus of responsibility back onto the driver. Their current favorite is driver-monitoring cameras, which the American Automobile Association (AAA) likewise believes are probably the best solution. The outlet recently shared the results of a study attempting to determine which driver-engagement systems worked best and decided that in-cabin cameras were the leading choice in a batch of bad options. Read More >
With electric vehicles getting a lot of press, you might be wondering which models are scratching consumers in all the right places.
According to J.D. Power’s U.S. Electric Vehicle Experience Ownership Study, the Kia Niro EV is the best thing the mainstream BEV market currently has to offer. The Korean model garnered a satisfaction rating of 744 points out of a possible 1,000. However, it wasn’t the top dog overall. That honor fell to the Tesla Model 3, which achieved a score of 777 points — besting the industry average for premium electrics by a whole seven points. Read More >
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