Auto Industry News: Baja Wins, Auto Sales Losses, Electric Buicks & Flying Taxis

April showers may bring May flowers but they certainly haven’t encouraged a better vehicle supply. Automakers released their U.S. auto sale totals for May this past week, and the numbers are even more disappointing than expected. With supply chains worsening and inflation soaring, some automakers are pulling back. Elon Musk announced a hiring freeze and employee cuts, while Nissan just stopped taking orders for its much-anticipated new Ariya EV.

Others are still keeping their eyes on the prize, though. Buick dropped a futuristic concept vehicle to showcase the brand’s new all-EV identity, which it expects to be in full-force as early as 2024. And believe it or not, automakers and aerospace companies are still chipping away at flying taxis. California-based Joby Aviation recently secured some important FAA certification – keep reading to find out what it could mean for future transportation.

But first… the Baja 500 finished up on Sunday, just south of the border in Ensenada and longtime racer Rob MacCachren had the joy of adding yet another win to his resume.

MacCachren Takes Attrition-Heavy Baja 500

The 54th SCORE Baja 500 wrapped up on Sunday, with Rob MacCachren celebrating his third victory of the iconic race. Previously winning in 1996 and 2018, MacCachren added 2022 to the list, as he drove the 463-mile loop course in 9:22.47. Just two minutes behind him was Broc Dickerson, who celebrated his first time on a SCORE podium. Defending champ Larry Roeseler took third.

Attrition was high among the 261 contenders, with several front-runners knocked out of the competition early. Pole sitter and San Felipe 250 winner Luke McMillin lost the lead thanks to a failed steering box, though he did still manage to finish sixth. McMillin’s cousin and 5x Baja 1000 champion, Andy McMillin, suffered a blown motor, as did fellow Red Bull driver Bryce Menzies.

Other competitors struggled with a variety of issues from winding up in ditches to experiencing crashes that led to hospitalization – even heat exhaustion made the list this year. A few spectators were injured as well and airlifted to a hospital after being hit by Trophy Truck that could not see them amid the dust.

The race was not without its controversies, either. SCORE issued several time credits to drivers who were stuck in bottlenecks and emergency-response delays. However, some drivers argued the sanctioning body awarded these credits arbitrarily. Branden Sims, for example, lost his second-place finish in the Pro UTV Forced Induction class when Brandon Schueler received a twenty-five-minute time credit, while other drivers caught in the same delay received nothing.

Regardless, fans enjoyed plenty of dirt-flying action and got to see the G.O.A.T. rack up another victory. Next up for the World Desert Championship is the Baja 400, running September 13-18.

Dismal May U.S. Auto Sales

U.S. auto sales continue their disappointing slide with May numbers posting lower-than-anticipated results. According to LMC Automotive, May sales came in at a dismal 1.11 million – 29% lower than May 2021. The seasonally adjusted, annualized rate of sales – last clocked at 14.6 million in April – has now dropped to 12.81 million, according to Motor Intelligence. (12.68 million if you go by Wards Intelligence forecasts.)

Automotive News reports that six of the seven automakers who report monthly results racked up double-digit declines this past month, despite record transaction prices. Forecasters estimate new car prices for May 2022 will settle at $44,832 – the third highest level on record, and a 15.7% increase from last year.

Observing tangled supply chains and record inflation, RBC adopted a particularly alarming tone in its own report, dubbing current numbers to be at “recessionary” levels. Those words were echoed by Elon Musk, who issued an ordering freeze last week. In emails seen by Reuters, he expressed a “super bad feeling” about the economy and said he wants to cut 10% of Tesla’s 100,000-strong global workforce. Musk’s note comes only two days after he ordered Tesla employees to either return to the office or get another job.

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Did you know…?

Elon Musk is reconsidering his Twitter purchase, threatening to walk away from the $44 billion deal if the company does not provide requested information about spam bots and fake accounts. Twitter insists less than 5% of its users are bogus, but Musk disputes that number and says the company must provide proof before the deal goes through. In a securities filing on Monday, he accused the company of breaching their agreement.

Nissan Limits Ariya

In other EV news… Nissan asked its U.S. dealers to stop taking preorders for the new Ariya electric crossover. The altered roll-out of the automaker’s second EV model comes as supply chain problems worsen, causing Nissan to limit its orders to those that can be realistically fulfilled, according to company COO Ashwani Gupta.

Deliveries of the base model just started last month in Japan, after a two-month delay. With demand increasing in both the U.S. and Europe, Nissan is unwilling to write checks it can’t cash. The conservative attitude is perhaps unsurprising as the company works hard to rebuild its image after suffering historically low sales and profits, not to mention a brand identity crisis and the absolute PR nightmare of former CEO Carlos Ghosn.

A turnaround seems to be in the works though. In May, Nissan reported its first fiscal-year profit in three years, with North America emerging as a big contributor. The company also cut its rental car company sales down to roughly a third of what it used to be, according to Jérémie Papin, Nissan’s chairman for the Americas. He said he expects customer demand for Nissan products to be 40% EV in 2030. As a result, the company is planning several assembly plant investments in the U.S.

In our opinion, however, the real symbol of Nissan’s bounce back is the complete redesign of its iconic Z sports car. Powered by a 400-hp twin-turbocharged V-6 engine, the new Z serves up exciting acceleration, sharp handling, and an optional six-speed manual in a chef’s kiss retro-styled package. The Ariya may represent the future, but the Z delivers a much-needed injection of a happy past.

Buick Bets On Batteries

Speaking of new brand identities… Buick has jumped on the EV bandwagon, saying it will abandon internal combustion vehicles after 2024. The brand intends to revive the Electra name with a full lineup of electric vehicles and plans to make its new EV-only transition alongside sister brand Cadillac.

In addition to updating its tri-shield logo, Buick showed off its future design language in a new concept vehicle dubbed Wildcat. Managing to blend both vintage and futuristic vibes, the Wildcat sports a wide stance and swoopy, almost sculptural exterior styling. Inside is a roomy interior populated with touchscreens and novelty tech, including artificial intelligence, biometrics and even aromatherapy.

If Buick can deliver a production model that actually resembles this concept, the brand stands a good chance of becoming a household name again. However, we won’t get our hopes too high, as history has taught us the final product rarely resembles the prototype.

Flying Taxis – We’re Still Trying to Make This a Thing?

Still looking into the future… Californian venture-backed aerospace company, Joby Aviation, moved one step closer to a flying taxi reality when it gained FAA approval late last month. The startup can officially begin air-taxi operations this year – however only with conventional airplanes, not its five-seater electric vertical take-off and landing (eVTOL) aircraft.

The Part 135 air carrier certification is an important milestone for Joby, which hopes to be the first company to receive full FAA blessing for an eVTOL air-taxi service by 2024. (It needs to gain two more certifications before that dream becomes reality.)

High Hopes

With the potential to cut down travel time, traffic congestion, and pollution, eVTOLs stand to revolutionize urban transportation. A Morgan Stanley Research study estimates the market could be worth as much as $1.5 trillion globally by 2040.

A number of companies are already dabbling in the technology, experimenting with a variety of designs, including AirBus and Boeing, as well as automakers General Motors, Hyundai, and Toyota. However, investors will certainly be playing the long game as regulatory framework is still in its infancy, and aerial mobility development remains “fraught with significant risk as well as technical and economic hurdles,” according to a research study by Porsche Consulting.

If flying taxis aren’t strange enough, it’s worth mentioning that these companies are actively working toward a future of driverless flying taxi fleets. (Err… pilotless?) Boeing actually plans to cut right to the chase, skipping piloted eVTOLs in favor of full autonomous versions. The company recently invested an additional $450 million into the endeavor, and insists its autonomous prototype already mastered vertical lift off and landing.

The Engine Block is your one-stop source for any and all auto industry news. Keep an eye on our weekly round-up of enthusiast coverage, product reviews, vehicle spotlights, auto show/expo features, and more. As summer rolls in and we all start hitting the trails, be sure to brush up on Tread Lightly! practices. Check back Friday for a helpful rundown.