Auto Industry News: KOH Kicks Up Dust, Insurers Drop Kia & Hyundai Owners, and Automakers Tease New Rides

Off-road fans continue to party it up out west, as KOH 2023 keeps pumping out dirt-flying action. This weekend saw a gutsy and dusty Toyo Tires Challenge, keeping Hammertown ramped up for the excitement of this coming Saturday’s main event. On the industry side, we have a quick update on January sales numbers, details on a few new rides, and more information on what’s really going on with those easy-to-steal Hyundai and Kia models.

King of the Hammers Update

We’re still a week out from the Nitto Race of Kings, but already the action is flying at KOH 2023.

This past weekend, the Toyo Tires Desert Challenge hit the Johnson Valley in a high-horsepower display of guts and dust. Battling grueling terrain and a nasty windstorm for good measure, racers from both the limited and unlimited classes tackled the 192-mile course weaving through California’s Mojave Desert.

Always an exciting race, this year’s event saw more entries than usual, since it doubled as the opening round for Best in the Desert. (The legendary Parker 425 was cancelled for January.)

After Saturday’s prologue, Chase Warren and Kyle Jergensen emerged as top qualifiers for the limited and unlimited classes, heading out into the desert first. Unfortunately, neither competitor could hold onto the lead and victory went to Ezra Ebberts (B2 – Desert Limited Buggy C10) and Adam Householder (T1 – Desert Unlimited) respectively.

Today, Great American Shortcourse will host its own season opener in Hammertown, while the Can-Am UTV Hammers Championship begins its qualifying. Tomorrow marks the fan-favorite Holley EFI Shootout, and then fans really start to gear up. The King of UTVs will be crowned on Thursday, while the 4WP Every Man Challenge takes place Friday and the main event Nitto Race of Kings on Saturday.

Did you know…?

After more than 20 years away from the sport, Ford will return to Formula 1 racing in 2026. The automaker announced its intention to partner with Red Bull, and will be focusing on battery and hybrid technology per new FIA regulations.

Quick Number Crunch: January Sales

Supply chain disruptions remain, but are easing enough to allow for fuller dealership lots. As a result, the market saw a little rebound in January. Total new-vehicle sales increased 5.4% over last year to reach a projected 1,043,100 units, according to a joint forecast from J.D. Power and LMC Automotive. The bump is mainly thanks to stronger fleet sales, as new-vehicle retail sales slid 1.7%.

Other notable takeaways from January include:

• Transaction prices continue to rise. January saw another record average price – this time of $46,437, an increase of 4.2% from a year ago.
• Manufacturer discounts are up slightly from a month ago, but remain historically low.
• Dealer profits are softening, but remain historically high.
• Consumers’ new vehicle monthly payments and average loan interest rates are also stubbornly high – reaching $723 and 6.8% respectively in January.
• EV interest is up, with Chevy emerging as the most-considered EV brand.
• Truck and SUVs are on pace to account for 78.7% of new-vehicle retail sales in January.

Looking for a New Ride?

Speaking of new trucks and SUVs…

News dropped this past week about three model refreshes set for 2024. If high prices don’t scare you, then maybe one these vehicles is for you.

2024 Toyota Tacoma

The exceedingly popular Toyota Tacoma will enter its fourth generation next year. And thanks to some eagle-eyed fans with tabs on the Brazilian patent registration office, we may have a sneak peek of its new design.

A document filed with the office in late January included patent images showing a truck that looks very similar to the Tacoma EV Concept that the automaker revealed in late 2021. It’s a sharp design with clean lines and muscular styling, reminiscent of the newly redesigned Tundra.

While Toyota has yet to confirm anything on new Tacoma, the next-gen model is expected to ride on the automaker’s new TNGA-F architecture. This is a body-on-frame platform that also underpins the new Tundra and upcoming Sequoia and 4Runner. Other expected changes include an updated coil-spring rear suspension, upgraded interior, and new powertrain options – possibly a hybrid.

2024 Range Rover Velar

Moving up market, Land Rover delivers a thorough refresh to its Range Rover Velar for the 2024 model year. The luxury SUV sees a new exterior grille design and some tweaks to the headlights and trim, as well as a new eight-speed automatic transmission for smoother shifting.

The real changes happen inside though, where the Velar sees a complete overhaul. For reasons that continue to elude us, Land Rover is joining other upscale automakers in the push to banish manual cabin controls. Every single knob, dial, and button in the Velar – save for the shifter – is gone. Drivers must perform all vehicle controls through a series of finger taps and swipes on the vehicle’s new 11.4-inch curved glass infotainment screen.

The decision certainly makes for a clean-looking interior, but prioritizing form over function and driving safety seems a risky move in our book.

2024 Mazda CX-90

Speaking of upmarket offerings, Mazda remains determined to cement itself as an ‘alternative’ luxury brand by upgrading its product line – even if that means replacing consumer favorites. The automaker revealed its all-new CX-90, a premium three-row SUV with standard all-wheel drive that will replace the similar-but-smaller CX-9.

In addition to being longer and wider than the outgoing model, the CX-90 also packs quite a few notable upgrades. These include a new longitudinal-engine platform, along with fresh powertrain offerings – a 340-hp turbocharged 3.3-liter inline-six with 48-volt hybrid system, and a plug-in-hybrid 323-hp 2.5-liter four-cylinder paired to 17.8-kWh battery pack.

A cushy new interior with sleek styling and two-toned soft nappa leather rounds out the updates, as does a large 12.3-inch infotainment display controlled via – gasp! – a hard-knob clickwheel in the center console.

Dropped Insurance for Easy-to-Steal Hyundais, Kias

Bad news for some Hyundai and Kia vehicle owners…

Major insurance carriers Progressive and State Farm announced they will no longer issue policies for certain makes and models due to abnormally high theft rates. In some markets, where this move would violate state discrimination laws, the insurance companies plan to increase rates instead.

For now, the decision only applies to new policies and is limited to certain parts of the country but existing customers are understandably concerned.

“During the past year we’ve seen theft rates for certain Hyundai and Kia vehicles more than triple and in some markets these vehicles are almost 20 times more likely to be stolen than other vehicles.” – Progressive spokesperson.

What gives?

The problem stems from a vulnerability in the steering column of select Kia and Hyundai vehicles built between 2011-2021 – namely those that use a steel ignition key to start.

In an effort to bring down manufacturing costs and keep vehicles affordably priced, the Korean automakers did not install electronic engine immobilizers in these models. As a result, enterprising thieves can bypass the ignition in as little as 30 seconds, using just a screwdriver and a USB cable.

Negligent vehicle design is just one part of the puzzle, though. What really caused this to explode into a crime epidemic was social media.

While the thefts first began climbing in the Milwaukee area during the pandemic, the problem didn’t become a “trend” until last year. In July 2022, a video posted to TikTok showed members of the crime gang “Kia Boyz” hotwiring a Kia in response to an online challenge. While the video was taken down 10 days later, the damage was done. The viral video launched a series of responses, from joy-riding footage to step-by-step theft tutorials.

What now?

In response, the automakers announced that engine immobilizers will now be standard equipment on all new vehicles. As for existing customers, they can receive free steering wheel locks through their local police departments or purchase an anti-theft security kit at a Hyundai/Kia dealership. (Unfortunately, the latter option requires an investment of more than $500 for purchase and installation.)

The next step, say the automakers, will be free security software updates. Hyundai says this update will be available beginning next month, while Kia expects to roll out its own digital repair by mid-2023. No word yet on how exactly these enhancements will work.

As for the insurance carriers, they commit to monitoring the situation and will adjust pricing and acceptance criteria if theft rates return to a normal level.

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 Wednesday for a primer on aftermarket accessory cleaning and maintenance, and find a rundown of top recovery gear picks on Friday.