Auto Industry News: Barrett-Jackson Results, Extreme E Saudi Opener, March Sales Numbers, and Interesting Industry Shake-Ups

As Q1 comes to a close, the arrival of spring seems to work its annual magic. March new vehicle sales look exceptionally promising, while racing season gets back into full swing. The weekend was packed with trophy trucks, UTVs, and even electric buggies kicking up dirt in deserts from Utah to Saudi Arabia. On the industry side, recent professional shake-ups reveal a few more corporate marriages, business ventures, and buzzy new rides that might just have you revisiting your investment portfolio.

But first, the results from this year’s Barrett-Jackson Scottsdale Auction are in. And it looks like the collector car market has caught some positive spring feels as well…

Barrett-Jackson Scottsdale Results

Covid, Shmovid. Barrett-Jackson Scottsdale smashed expectations last week, exceeding $105 million in sales. The event enjoyed an incredible 100% sell-through rate for 1,054 vehicles, including Carroll Shelby’s personal 1966 Shelby Cobra 427 Super Snake which sold for an eye-watering $5.5 million.

Other memorable sales included a numbers-matching, highly-documented 1967 Ferrari 275 GTB/4, commanding a cool $2.475 million. Edsel B. Ford II’s 1958 Edsel Bermuda Wagon pulled in a record-breaking $165,000, while a 1997 Lamborghini Diablo VT Convertible and 2018 Ford GT ’67 Heritage Edition sold for $247,500 and $1.21 million respectively.

This year’s Scottsdale Auction also made history with the most first-production and VIN 001 vehicles ever offered at one event. These special rides – donated by automakers – were a signature part of the auction’s charity event and raised an impressive $5.8 million for a variety of philanthropic causes. Leading the charge was the 2022 GMC Hummer EV Edition 1 VIN 001, which sold for a stunning $2.5 million.

Another notable charity sale was the very first 2021 Ford Bronco 2-door. The rugged off-roader brought the hammer down on a final price of $1.075 million. Considering how long reservation holders are waiting for their deliveries, some might consider that a steal…

According to The Classic Cars Journal, pent-up demand in the collector car marketplace extends to vintage farm equipment as well. Mecum Auctions’ Gone Farmin’ division opened its 2021 calendar with a 96% sell-through rate and transactions worth more than $8.4 million at its Spring Classic sale at Davenport, Iowa.

Inaugural Extreme E Takes Electric Racing Off-Road

New electric off-road racing series Extreme E kicked off this weekend in the Saudi Arabian desert, featuring a cast of high-profile racing legends from Formula 1 to rallycross. The brainchild of Formula E founder Alejandro Agag, Extreme E is an electric SUV series that races through unforgiving locations to raise awareness of climate issues. The new series also promotes gender equality – mandating each team field one male and one female who share equal driving duties.

Each event features two qualifying time trials, leading to four races. The top three qualifiers proceed to the Semi-Finals, while the middle three head to a Crazy Race, and the bottom three go to a Shout-Out. Then a Final race occurs, consisting of the top two cars from the Semi-Final and the top car from the Crazy Race.

What’s the Verdict?

While spectators seem to agree the inaugural event was very exciting, general consensus says there is room for improvement. Many viewers expressed confusion with the format and rules, as well as frustration over how to actually watch the racing since it was broadcast on limited outlets – with tape delay, no less.

Additionally, since the event took place in the desert, victory appeared to hinge on merely taking the lead after the first corner so as to avoid a blinding cloud of dust. Indeed, the winner was decided in the opening seconds when Johan Kristoffersson of Team RXR got in front heading into Turn 1. Co-driver Molly Taylor then sailed the car to victory in Lap 2, securing a 24-second lead. Click here for full results.

Teething issues and gimmicky advertising aside, the series seems to have great potential among fans. And the desert-racing issues, at least, should be resolved for the next event. Extreme E features five races this season, each set against a different environmental background. Next up is “Ocean” in Dakar, Senegal, followed by “Arctic” (Greenland), “Amazon” (Brazil) and, “Glacier” (Argentina).

Speaking of desert-racing, the dust is still settling on the 2021 King Shocks Area BFE Beatdown — race #1 of the Ultra4 Lasernut Western Series. Some of the best drivers in the world tackled one of the most beautiful race courses in Moab, Utah. Race results for all classes can be found HERE. Next event on the schedule is the 4WP Battle in Bluegrass, which kicks off the Eastern Series. Enjoy live streaming on Ultra4’s website.

March New Vehicle Sales Jump Off the Charts

Despite a worrying dip in February 2021 sales figures, this past month indicates an encouraging rebound. Sales reports noted double and even triple-digit spikes, largely outperforming analysts’ forecasts that first-quarter auto sales would be 8-9% higher than the same time in 2020.

While domestic automakers fell in line with single-digit improvements, international nameplates saw major boosts. Toyota reported an 87% volume increase in March 2021 U.S. sales, compared to March 2020, with Q1 results up 21.6% on a volume basis. Volkswagen’s Q1 totals were also up 21%, marking its best first quarter since 2013 and best-ever for SUV sales, which jumped 55%.

Hyundai experienced an even greater boom, reporting an incredible 115% increase compared with March 2020 and the all-time best month in the automaker’s history. Sister-brand, KIA, reported a 46% sales increase for March and a 16% increase for the first quarter.

Things may be looking up, but experts add a note of caution.

Limited inventory created by pandemic-related production issues and semiconductor shortages presents an ongoing challenge for automakers. As a result of tighter inventories, consumers may be “making more aggressive purchasing decisions,” said Jessica Caldwell, Edmunds’ executive director of insights. “Retail customers are being offered fewer choices and paying higher prices,” she said, noting that shoppers looking for high-demand SUVs and trucks are “pulling the trigger on a car purchase as soon as they can find inventory, because those vehicles are flying off the lots.”

Average new-vehicle transaction price did rise in the first quarter, continuing to surpass $40,000. While this translates to greater profitability for automakers and dealers, it makes a significantly more restricting shopping environment for bargain shoppers or those who simply cannot compete with high-earning customers, added Ivan Drury, Edmunds’ senior manager of insights. However, “consumers who have the advantage of a trade-in toward their next purchase might be able to look forward to getting a bit more for their vehicle than usual as demand for used cars continues to run high,” he said.

Buddy-Up

As is becoming custom these days, more companies are buddying up via mergers, acquisitions and strategic partnerships to more easily navigate the strange automotive landscape ahead. Teamwork makes the dream work, eh?

CarMax to Acquire Full Ownership of Edmunds

Speaking of car experts, Edmunds… CarMax Inc., the nation’s largest and most profitable used car retailer, has signed a definitive agreement to acquire the well-established online guide. Despite the obvious conflict of interest wherein a seller of used cars purchases a well-respected consumer-facing resource that helps shoppers buy cars, CarMax insists Edmunds will “continue to operate independently and remain focused on delivering confidence to consumers and exceptional value to its dealer and OEM clients.”

The two companies began working together in January 2020 when CarMax purchased a $50 million minority stake in Edmunds. The initial move intended to “bolster CarMax’s omnichannel retail strategy,” according to Automotive News. It did, as shortly thereafter, an instant-offer online tool popped up on Edmund’s website for those users looking to sell their vehicles.

The full acquisition announced last week does not have an official price tag attached, but is estimated to be around $404 million.

DPI Off-Road Brands Acquires Nitro Gear and Axle Manufacturer

DPI Off-Road Brands announced its acquisition of J.T.’s Parts and Accessories, Inc., the award-winning manufacturer of Nitro Gear and Axle. J.T.’s Parts and Accessories develops and manufactures differentials and axles for a variety of applications, making it a natural fit with DPI’s existing product portfolio. DPI Offroad is an industry-leading supplier of quality suspension parts, and the parent company of such well-known brands as Daystar Products International, Tuff Country, VooDoo Off-Road, MCE Fenders, Scorpion Extreme Products, and HCR Racing, among others.

JT’s is the fifth acquisition by DPI Off-Road since it began its partnership with private equity firm Dubin Clark in 2017. JT will operate as a division of DPI Off-Road Brands.

Optimus Ride, Polaris to Build Autonomous GEMs Together

Under a new joint development agreement, Optimus Ride will help Polaris build an exclusive line of its existing Global Electric Motorcars (GEMs), now with autonomous software. GEMs are zero-emission, low-speed vehicles positioned somewhere between a golf cart and a van or truck. Considered a smart mobility solution for passenger or utility needs, they are often found on college or corporate campuses, residential communities, and other localized environments.

Optimus Ride has already successfully completed more than 75,000 rides with Polaris GEM vehicles over the last two years across deployment sites throughout the country. Now, the two companies intend to take their partnership to the next level and work together to bring these new fully autonomous vehicles to market by the second half of 2023.

BMW’s MINI Brand To Be All Electric By 2030

Speaking of futuristic rides, BMW announced this week that its subsidiary, MINI, will become an all-electric vehicle brand by 2030. According to Aftermarket News, the last standard combustion-engine MINI model will roll off the production lines in 2025, with the automaker hoping for at least 50% of all MINI deliveries by 2027 to be fully electric.

Currently, the Cooper SE is MINI’s only EV – accounting for 12.5% of BMW sales worldwide with 300,000 units sold. However, the automaker revealed that an all-electric version of the Countryman will enter production in 2023. BMW also said while its main plant in Leipzig, Germany will produce electric vehicles, the automaker’s partnership with Chinese manufacturer Great Wall Motor will be key to the MINI brand’s electrification strategy.

Hyundai Teases Long-Awaited Santa Cruz Small Pickup

And, for some not-quite-as-futuristic vehicles, Hyundai released teaser photos last week of its all-new Santa Cruz pickup truck. With four doors and an open bed, the long-awaited vehicle mimics a crew-cab setup but in significantly smaller proportions and with much sportier styling.

The unibody pickup aims to meet the “changing everyday needs of its adventure-oriented buyers,” said Jose Munoz, president and CEO, Hyundai Motor North America. Though it will join the Honda Ridgeline and upcoming Ford Maverick among trucks ditching traditional body-on-frame construction, Munoz feels the new Santa Cruz “breaks open all-new segment territory, both for Hyundai and the industry as a whole.”

Details are still hush-hush, but we know the new model will have its official debut on April 15. However, Hyundai did reveal that the Santa Cruz – build on a crossover platform – would be the smallest truck on the market and will be produced at the automaker’s Alabama factory.

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. Be sure to check back Friday for the next installment in our Resourceful Traveler series. This time, we tackle navigation apps to make your overlanding trip a success.