Auto Industry News: KOH 2024 Delivers Epic Finale, GM Pivots Back to PHEVs, and Elon Loses At Court
There’s never a dull moment in the auto industry, but this week’s excitement is mostly of the go-fast variety. The 2024 King of the Hammers wrapped up this weekend, delivering one of the most nail-biting final laps in history. The Engine Block walks you through the action — as well as the fresh drama coming out of Formula 1. As Lewis Hamilton gets fitted for a red suit, GM puts plug-in hybrids back into the manufacturing lineup. Meanwhile, Elon Musk says goodbye to his $56B pay package, Vroom exits the online used-car retail market, and California lawmakers try to slap speed limiters on new cars.
Like we said, never a dull moment.
KOH 2024 Recap
Known for delivering pulse-pounding action and drama, the 2024 King of the Hammers certainly made good on its reputation. The toughest one-day race in the world ended with one of the most dramatic final laps in history, as a steady stream of broken parts led to constant last-minute leader changes and an unlikely victor.
Charging his way from the back of the pack, JP Gomez (#82) drove his single-seat UFO Fabrication buggy to his first KOH victory – passing an incredible 98 competitors along the way. It was the third consecutive win for his team, Gomez Brothers Racing; his brother Raul won in 2022 and 2023.
Nonstop Excitement
The race, which consists of three grueling laps over more than 200 miles of brutal terrain, served up unexpected excitement from start to finish.
During qualifying, Cade Rodd set the fastest time of the day and was the only driver to break the 7-minute barrier (6:42), proving his should be a household name. As the race’s first two laps unfolded, the leaders appeared to be set – largely thanks to a nasty bottleneck in Turkey Claw a mere two miles into the race. The boulder-strewn Hammer Trails took care of the rest, serving up stuck rigs and flat tires. The narrow section of Outer Limits proved particularly vengeful, knocking Rodd and Justin Scherer out of third and fourth place, respectively.
Heading into the third and final go-round, two-time champ Raul Gomez was in the lead with Casey Currie about 5 minutes behind and Marcos Gomez holding onto to third with both hands in a heavily-damaged vehicle. Can-Am UTV Hammers Championship-winner Kyle Chaney was hot on Gomez’s tail in fourth in his Can-Am X3 on 37-inch tires, with Brett Harrell pushing hard in fifth.
At this point, the dominos began to fall.
Epic Finale
Marcos Gomez suffered mechanical failure shortly after leaving the main pit. Then, Harrell lost precious time rolling onto his lid on a tricky section of Check Me Out. Raul Gomez, on his way to making history as a three-time king, rolled onto his side at the top of Big Johnson.
With the grid shuffled, Currie took the lead — then quickly lost it when his driveshaft broke. Chaney took over, only to be passed by Loren Healy who had clawed his way back from a bum power steering pump earlier in the race. His view of the podium was short-lived, however, as his transmission input shaft broke and left him with no power to the wheels.
Healy’s misfortune allowed Chaney to limp across the finish line despite his own failed front suspension. While he technically crossed first, Chaney faced a devastating 52 minutes of penalties for missing part of the course which settled him in eighth place overall. Even without the reductions, however, JP Gomez finished with the faster time to secure the scepter.
Gomez wasn’t the only underdog on the podium, though. Harrell, who made a remarkable recovery after rolling, finished second. Third place went to John Webb – who almost didn’t make it to the starting line when his car caught on fire in the trailer. Veteran Dan Fresh took 4th and former king Erik Miller took 5th.
Other notable wins during King of the Hammers events, included:
- Liqui Moly King of the Motos – Cody Webb
- Toyo Tires Desert Challenge – Christopher Polvoorde
- Can-Am UTV Hammers Championship – Kyle Chaney
- Every Man Challenge – Randy Slawson
In Case You Missed It…
Formula 1 delivered its own signature drama last week with two major happenings. The first came when Lewis Hamilton announced he would be ending his long relationship with Mercedes at the end of the 2024 season. Taking advantage of an escape clause in his contract, the 39-year-old driver will replace Carlos Sainz Jr. at Ferrari in 2025.
Even more surprising, however, was the second announcement – F1’s scathing rejection of Andretti Formula Racing’s application for an all-American race team. The organization bemoaned the “operational burdens” of an 11th team and went on to say it did not believe Andretti would be “a competitive participant,” despite the Andretti name boasting more F1 World Championships than some teams currently competing. Adding true insult to injury, however, F1 said it didn’t think Andretti would bring “value” to the Championship – a truly head-scratching reaction, considering the sport’s recent surge in America.
PHEVs Replacing EVs in Electric Strategies
In a move that perhaps anyone watching automotive news could have predicted, big-name automakers are restructuring their manufacturing plans to prioritize more consumer-friendly hybrid vehicles over an “all-in” push for electric models.
The latest company to share its revised plans is GM. During a fourth-quarter earnings call with analysts on Tuesday, CEO Mary Barra said the company was still committed to eliminating tailpipe emissions from light-duty vehicles by 2035, but that plug-in hybrid technology would now play a bigger role in that strategy.
Barra said GM plans to “deliver the program in a capital- and cost-efficient way” but declined to say which “strategic segments” would see the vehicles. She was also vague on a timeline, noting PHEVs would enter the lineup when GM needed them “from a compliance perspective.”
Indeed, the EPA’s newly-proposed fuel economy rule – which requires automakers to make significant fleetwide emissions cuts each year – will necessitate more than an EV roll-out that’s front-loaded with expensive models. Cooling consumer demand and an unreliable charging infrastructure aren’t helping projections, making PHEVs a tidy and attractive short-term solution.
While other automakers like Toyota and Hyundai have kept hybrids on tap, GM all but abandoned the segment despite having an early entrant in the 2010 Volt. The automaker ended production in 2019 due to low sales, and retooled the plant for EVs.
Barra soothed any investor grumblings with a promised payday. She said GM is prioritizing returning cash to its shareholders – with nearly all of the money interestingly coming from strong ICE-vehicle demand.
Did you know…?
EV sales fell in California during the last quarter of 2023, marking the second consecutive dip for the segment in a state vociferously committed to the technology. Indeed, nearly a quarter of the market is dominated by plug-in vehicles (BEVs or PHEVs), and California regulators earmarked 2035 as the deadline for new ICE-vehicle sales in the state. Experts aren’t ready to call it a cool-down yet, but will be watching the next few quarters closely.
What Else You Need To Know This Week
Here are a few headlines we’re keeping an eye on and think you should too.
Elon Musk Suffers Big Legal Loss
On Tuesday, Delaware Judge Kathaleen McCormick ruled to void Elon Musk’s enormous $56 billion compensation plan from 2018, calling it “an unfathomable sum” unfair to shareholders. The pay package – which made history as the largest ever for any CEO in history – helped make Musk the richest man on earth.
While Tesla board members insisted the amount was necessary to keep the dynamic entrepreneur focused on electric vehicles, the judge sided with the plaintiff, Richard Tornetta. Despite only holding nine shares at the time, Tornetta brought suit in 2018. His legal team argued that Tesla directors shirked their duty to shareholders by not offering a smaller pay package or exploring the possibility of bringing in another CEO.
The ruling will undoubtedly affect Musk’s upcoming compensation plan, which he has already stated will need to provide him with more voting control if the board wants him to continue growing Tesla into an AI technology and robotics applications leader. Musk is expected to appeal the ruling.
No More Vroom
Online used car retailer Vroom is shutting down operations, joining Shift Technologies as the second such business to close its doors in just four months. Like Shift, Vroom failed to secure necessary capital and lost investor confidence. Unlike Shift, it hasn’t filed for bankruptcy. Instead, Vroom stopped vehicle transactions and is starting the process to sell off its inventory. The company also plans to let go of about 90% of its workforce.
Vroom’s exit leaves Carvana and CarMax to dominate the used-vehicle e-commerce market – both of which currently face financial challenges and profitability concerns.
California Bill Threatens Speed Limiters
California Senator Scott Wiener (D–San Francisco) introduced a pair of bills last week meant to combat the rising road deaths in the state. The first bill, SB 960, targets the California DOT by requiring infrastructure upgrades for pedestrians, cyclists, disabled people, and transit users. The second bill, SB 961, targets automakers by requiring speed limiters on all new vehicles sold in the state, starting with the 2027 model year.
The manufacturer-installed smart devices would use GPS to prevent drivers from going more than 10 mph over the posted speed limit.
Emergency vehicles would be exempt, and the Commissioner of the California Highway Patrol would have the authority to disable the tech in other vehicles as well. Drivers experiencing a temporary emergency would also have access to some override option yet to be defined. The bill does not provide clarification on other specific use-cases – like daily drivers that double as weekend track vehicles.
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. Check back Wednesday for some tips on preserving battery power in your stored project car, and then circle back on Friday for a list of the best movie chases featuring unlikely hero cars.
