Auto Industry News: Lee Iacocca Dies at 94, 2019 Goodwood Festival of Speed Shows New Direction for Car Shows, as New Vehicle Sales Drop Again
As auto industry legend Lee Iacocca dies at age 94, the 2019 Goodwood Festival of Speed marks a new direction for car shows and vehicle marketing. That’s not all that’s changing though, as new vehicle sales continue to drop while prices go up, signaling some economic developments for the auto industry. Plus, NASCAR results from an exciting Fourth of July weekend.
Former Chrysler CEO Lee Iacocca Dies at 94
Former Chrysler CEO Lee Iacocca has died at age 94. A beloved industry icon, Iacocca was the figurehead of two American car-making giants during his lifetime, as well as the man behind the creations of the Ford Mustang, Ford Pinto, and Chrysler minivan.
Born in Allentown, Pennsylvania on October 15, 1924 to immigrant parents, Iacocca accomplished both an industrial engineering degree from Lehigh University and a masters in mechanical engineering from Princeton by 1945. The next year, he began his tenure at Ford, thanks to an engineering fellowship, but quickly grew bored and switched to sales. Iacocca steadily worked his way through the ranks, becoming head of car and truck sales for Ford Division by 1960. And his first big contribution? The now-iconic Ford Mustang. That success earned him a promotion to vice president of car and truck development for both the Ford and Lincoln-Mercury divisions. And by 1970, he was president of Ford Motor Company.
Fired by Henry Ford Jr. in 1978 due to personal tensions, Iacocca was quickly scooped up by Chrysler, and became the company’s CEO in 1979. There, Iacocca secured a $1.5 billion government bailout package, streamlined the company, and even cut his own salary from roughly $360,000 to $1 to save it from bankruptcy. He pushed the development of small fuel-efficient family sedans, making Chrysler profitable again and paying back the government’s loan package seven years early.
Keeping busy, in 1982, at the bequest of President Ronald Reagan, Iacocca led a multi-million-dollar private fund renovation of the Statue of Liberty and Ellis Island. The next year, he developed the minivan for Chrysler. And by ’87, he announced the purchase of American Motors Corp., bringing the company its now-invaluable Jeep brand.
A True Innovator
Known for his straight-talking style and short-fuse temper, Iacocca was a force to be reckoned with in the world of high-powered auto deals and revolutionary new product development. Even after his (somewhat forced) retirement in 1992, he continued to stay involved in new business ventures. He also openly shared his clear vision for the industry’s future. In 2005, he went on record for a New York Times article stressing the importance of hybrid car development before many execs were ever on board with the idea.
Iacocca’s leadership had an obvious impact on his peers, and his death is felt throughout the auto industry. An FCA company statement referred to Iacocca as “one of the great leaders of our company and the auto industry as a whole,” while Ford executive chairman Bill Ford described him as “truly bigger than life, [leaving] an indelible mark on Ford.”
2019 Goodwood Festival of Speed Delivers a New Kind of Auto Show
As we’ve reported on the blog before, the old-school auto show is experiencing a bit of a skid right now. As the traditional setup fails to attract spectators, many automakers are exploring other avenues for new vehicle promotions and brand awareness. And one such alternative that seems more alive than ever, is the Goodwood Festival of Speed.
Modern, fresh, and fun for enthusiasts both young and old, the 2019 Goodwood Festival of Speed wrapped up this past weekend with plenty of high-octane excitement—and high attendance numbers to boot.
As one of the U.K.’s premier automotive gatherings, the Goodwood Festival of Speed does much more than just position a parked car on a spinning dais inside a boring old convention center. Set on the beautiful Goodwood Estate, the festival kicks off with a traditional hill-climb, showcases a full rally stage and drifting arena, offers ride-and-drives, concerts, and new model debuts.
This approach has attracted some of the biggest global automakers to showcase their vehicles at the festival, with this year’s theme being “Speed Kings, Motorsport Record Breakers.”
Let’s take a look at some of the standouts of the 2019 Goodwood Festival of Speed.
Land Rover Makes Opening-Day Splash
Jaguar’s newest Land Rover Defender model made an impressive debut performance at the 2019 Goodwood Festival, scaling the hill climb as the festival’s founder, the Duke of Richmond, officially kicked off the event.
Showcasing its power and off-roading capabilities, the near-production prototype promises “engaging on-road dynamics,” while maintaining that iconic boxy silhouette, according to Land Rover Chief Engineer Mike Cross. Its full design will remain a secret for now, however, as company execs keep its body camouflaged until its 2020 launch. No official price point has been set yet.
Ford Puma Makes U.K. Debut, Showcases Various Models
Ford pulled out all the stops for the 2019 Goodwood Festival of Speed, bringing a stable of vehicles and interesting new designs.
Some notable highlights include: the all-new Mustang Shelby GT500, hot off its U.S.-debut, driven by three-time world champion drifter Vaughn Gittin Jr., as well as the all-new Focus ST and Ranger Raptor models, both driven by seven-time British motorsports champion Paul Swift.
Also interesting, is the revival of the Ford Puma. The resurrected nameplate’s SUV-crossover design showcased alongside the all-new Kuga SUV, “Ford’s most electrified vehicle ever,” giving European consumers a look at what’s to come from the now SUV-oriented Blue Oval.
While Ford spokespeople state there are no plans to bring the Fiesta-based, 155-hp mild hybrid to North America, Car and Driver claims, “Some senior Ford managers are already lobbying enthusiastically for it to be brought to the States.”
The Adorable Honda E Silently Flexes Its Muscles
Keeping pace with the big boys is the Honda E—a silent, emissions-free little electric vehicle with a surprising amount of power. While only a prototype so far, the E has quite a bit to offer with 50/50 weight distribution, rear-wheel drive, 148 horsepower and an instant 221 pound-feet of torque, allowing it to zip from 0-60 in 8 seconds.
Expect to see more exciting events like the 2019 Goodwood Festival of Speed on America’s shores, as automakers look to liven up the classic auto show.
New Vehicle Sales Down, But Prices Are Up
As major automakers begin releasing their monthly results, preliminary numbers show new vehicle sales are down—again.
In fact, according to Bloomberg, carmakers have actually had what would be considered the worst first half of retail sales since 2013. According to some recent surveys, retail sales fell about 2.9 percent last month and by about 3.3 percent in the first half of 2019.
The Detroit Free Press reports that America’s Big Three have “weathered” the storm of tariffs, job cuts, and new R&D costs through June, thanks to strong sales in pickups and SUVs. Overall, Ford sales declined by 4.1%, GM by 4.2%, and FCA by 2%.
However, all automakers reported that their transaction sales were up for both cars and light trucks. Indeed, according to syndicated source J.D. Power, despite the decline in sales, average new vehicles sales are on pace to reach $33,346. That’s up 4% from last year and setting a new record.
With the economy chugging along as it is, and transactions, though down in volume, going up in profitability, this dip in new vehicle sales doesn’t have experts all too concerned. “If the Fed cuts rates, as widely expected, lower financing costs will provide further support to auto sales,” explains GM Chief Economist Elaine Buckberg, who believes the industry will sell a “healthy 17 million units” throughout 2019.
Around the Circuit
NASCAR celebrated an exciting Fourth of July weekend.
Monster Energy Series
Justin Hailey scored his first ever career win this Sunday during a weather-shortened Coke Zero Sugar 400 at the Daytona International Speedway, finishing ahead of William Byron and Jimmie Johnson.
Dark clouds and lighting ended the race 33 laps early, awarding Hailey his first win in only his third ever professional race and making him the second youngest cup winner in Daytona International Speedway history.
Next up for Monster Energy series racers is the Quaker State 400 on July 13 at Kentucky Speedway.
Xfinity Series
It was a fantastic day for Kaulig Racing during Friday night’s Circle K Firecracker 250 at Daytona International Speedway, with three of their drivers taking first, second, and third place in Victory Lane.
Ross Chastain finished ahead of Justin Haley and AJ Allmendinger, who was unfortunately eliminated due to a failed post-race inspection. Chastain passed Tyler Reddick for the lead late, taking Haley up with him. Allmendinger worked his way up to third after an 11-car incident on the back stretch of lap 87.
After the race, Chastain couldn’t contain his excitement. “Oh, my god, we did it — Daytona!” exulted Chastain, a watermelon farmer from Florida, who continued his roller-coaster ride in NASCAR racing with his first Xfinity Series victory of the season and the second of his career. “I watched these races in July as a kid, and I never could come (to the track) because we were growing watermelons.”
Next up for the XFinity Series is the ALSCO 300 on July 12 at Kentucky Speedway.
