Auto Industry News: November Sales Surge, UAW Docs Show Future Stellantis Plans, and Elon Musk In More Trouble

This past week was all about expectations in the auto industry — great ones, unrealistic ones, and significantly tempered ones.

As November comes to a close, data experts predict a double-digit increase in new-vehicle sales, leading to a much rosier outlook for 2023 totals. That hopeful attitude is on display at Stellantis too. Details from UAW documents shed light on the automaker’s upcoming product pipeline – and it’s chock full of hybrids, EVs, and a new mid-size truck.

Expectations seem less upbeat at Ford, GM, and Mercedes, which are all recalibrating their ambitious electric agendas to better match a complicated market — even as another U.S. state adopts a ban on ICE vehicle sales. The Engine Block fills you in on what you need to know, along with updates on Elon Musk’s latest antics and controversies, and Cruise’s massive change to its robotaxi operations.

November New-Vehicle Sales Surge

Despite stubbornly high transaction prices, interest rates, and insurance premiums – not to mention a nearly six-week UAW work stoppage – somehow, incredibly, total new-vehicle sales for November 2023 are expected to post a double-digit sales increase over last year.

According to a joint forecast from J.D. Power and GlobalData, the month’s new vehicle sales are projected to reach 1,236,000 units, a 10.2% surge over November 2022 that should bump the annualized sales pace to 15.5 million vehicles.

While still more than 40% below pre-pandemic levels, inventory looks promising. At roughly 1.6 million units, levels are up 7.5% from October and 43.7% over this time last year. Consumers will enjoy having a little more choice on the lot, and they’ll certainly celebrate the drop in average new-vehicle retail transaction prices – even if it is only a paltry 1.9%.

Additionally, J.D. Power reports that this month, only 21.4% of new vehicles are projected to be sold above MSRP, down from 37.1% in November 2022. Still, consumers are on track to spend nearly $44.5 billion on new vehicles this month, which sets a new record for the month of November.

All in all, the report paints a positive outlook for the road ahead, saying the new-vehicle industry “remains robust” and noting how the end of the UAW stand-up strike means “the industry can refocus on production, product launches and year-end sales promotions.”

In Case You Missed It

Speaking of new product launches, the third-generation Porsche Panamera made its big online debut last week. Hidden beneath the minimal visual changes, the luxury performance sedan bears a surprising number of upgrades. They include an updated cabin with fresh tech and entertainment features, an advanced suspension, revised gas engines, and an all-new Turbo E-Hybrid model powered by a hybridized 4.0-liter twin-turbocharged V8 good for 670 horsepower and 685 pound-feet of torque. The 2024 Porsche Panamera starts at $101,550 and should hit showrooms sometime in the spring.

UAW Document Spills Beans on Stellantis Product Plans

Earlier this month, United Auto Workers members voted to ratify the tentative contracts negotiated by their union. As part of that process, UAW leaders provided rank-and-file members with robust documentation detailing all the finer points of the contracts – including a very detailed breakdown of upcoming product commitments and investments on the behalf of the automakers.

According to the packet handed out to Stellantis workers, a lot of changes are in the pipeline over at Jeep, Dodge, and RAM. The biggest may be at the Belvidere, Illinois plant which, after being idled in 2021, will come back online to produce all-new midsize trucks in 2027. While this spells good news for us Dodge Dakota stans / RAM Rampage hopefuls, four years is a long time to wait (especially when Ford is selling Mavericks like hotcakes).

Apparently, 2027 will be a big year though, as Stellantis also plans to drop the next-gen Grand Cherokee (both ICE and BEV), as well battery-electric versions of the Wagoneer/Grand Wagoneer alongside second lifecycle refreshes for the ICE variants. (The first refresh is expected in 2025.)

As for other more beloved Jeep models, the timeline indicates the next-gen Wrangler will arrive in 2028 along with a full battery-electric model and a range-extended EV. An upgrade to the hybrid Wrangler 4xe and introduction of the Gladiator 4xe should land in 2025. That same year, the current Dodge Durango exits to make room for a next-gen model with both internal combustion and battery-electric powertrains, set to arrive in 2026.

And lastly, RAM trucks will see their mid-cycle update by next year. The RAM 1500 REV and battery-electric trims are also set to arrive in 2024.

Did You Know…?

After the UAW secured its new record contracts – and announced its future expansion plans — nonunion U.S. vehicle makers have been quick to hand out raises. Volkswagen is the latest to give its workers a bump in pay, increasing salaries at its Tennessee assembly plant by 11%. The move follows similar wage increases at Honda (11%), Toyota (9%), and Hyundai (25% over the next four years).

Tough as nails, soft as… carpet? Check out the BedRug Bed Liner — the most innovative and unique truck bed liner on the market.

Elon Musk Back in the Hot Seat

It’s honestly becoming difficult to keep up with the sheer amount of drama circling this man, but here goes. In addition to having his myriad companies fall under federal scrutiny from an alphabet soup of government agencies – including new allegations of safety violations and workplace injuries at his Tesla and SpaceX factories – Elon Musk now finds himself coming under fire for endorsing an antisemitic post on X/Twitter last week. The behavior resulted in several major companies halting their advertising on the social media platform, along with shareholder calls for a board sanction of the controversial CEO. By Monday, November 27, Musk was in Israel meeting with the Prime Minister and President, lending his support and discussing how to balance fighting hate speech online with protecting free expression.

Regardless of how the Tesla board chooses to respond to this particular situation, they’ll have plenty of other issues to contend with. On Tuesday, Reuters dropped a special report detailing serious problems with Tesla’s auto insurance venture, including critical understaffing, automated rate hikes leading to inflated premiums, and failure to settle claims and pay out repairs.

Adding more fuel to the fire, the EV maker will be heading to court in Florida after a judge ruled that Musk knew Tesla’s Autopilot driver assistance system was defective but still allowed cars to be sold with the technology – and even “engaged in a marketing strategy that painted the products as autonomous.”

Before this, Tesla had enjoyed a few major legislative victories against plaintiffs alleging Autopilot is defective and unsafe. The Florida ruling could open Tesla to some serious punitive damages and more lawsuits.

What Else You Need To Know This Week

Here are a few headlines we’re keeping an eye on and think you should too.

New Jersey to Ban ICE Vehicle Sales By 2035

New Jersey is the latest to join a growing number of states committing to zero-emission climate goals by embracing bans on the sale of internal combustion engine vehicles. While each state’s prohibition varies, they generally aim to follow California’s lead under the Advanced Clean Cars II rule, which uses a two-pronged legislative approach to require an increasing number of zero-emission vehicles while also imposing increasingly stringent standards on gasoline-powered vehicles.

New Jersey will begin limiting gas vehicle sales in 2027, with the goal of reaching zero in 2035. The move does not ban ownership of an ICE vehicle, nor does it ban the sale of used gas-powered vehicles, however residents will need to import new models from out-of-state – and only if they meet certain emissions requirements.

The decision, while lauded by environmental groups, has received outspoken criticism from business and labor groups who point to a lack of charging infrastructure, a failing power grid, high upfront purchase costs, and a violation of consumer choice.

OEs Pull Back On EVs

Despite the aggressive legislative pushes, automakers are doing a noticeable about-face on their ambitious electric vehicle plans.

On Tuesday, Ford announced it will resume work on its proposed battery plant in Michigan but at a significantly reduced scale (nearly 40%). The automaker also eased up on its electric vehicle certification program for dealers by slashing training costs, amending deadlines, and reducing charger requirements. Demand for electric vehicles is “not growing at the rate that we originally expected,” Ford spokesman T.R. Reid told the The New York Times.

The comments echo GM’s Mary Barra, who during the company’s Q3 earnings call last month, called the EV transition “a bit bumpy” as she announced the automaker’s plan to abandon EV production targets and its buzzy EV-alliance with Honda.

Mercedes CFO Harald Wilhelm was more to-the-point, calling the EV market a “brutal” space. Even with big discounts and tax incentives, the company has been juggling with sluggish sales amid an oversupply of electric models. While it plans to stay the course on its EV targets, Wilhelm admitted the current market situation of pricing wars, slim margins, and supply chain snags is “not sustainable.”

Cruise Edits Its Robotaxi Playbook

Looks like upper management isn’t the only thing to see a shake-up over at GM’s self-driving subsidiary, Cruise. On Wednesday, the tech company announced massive changes to its future plans as it continues to grapple with the PR nuclear fallout following a high-profile safety crisis.

In a letter sent to employees, Cruise said it plans to limit its robotaxi fleet to a single city when operations restart – a drastic cut from the existing 13 U.S. cities previously on its docket. The company did not name which city would be chosen, nor when it would resume operations.

Additionally, parent GM announced an indefinite delay on the production of Cruise’s pod-like Origin robotaxi (pictured above), despite the completion of several pre-commercial prototypes. The move is notable, to say the least, as GM had very high hopes for the Origin. In fact, just days before California regulators suspended Cruise’s driverless permits in the state, the automaker unveiled big plans to press the Origin into driverless taxi service across the U.S. and in Tokyo. The Origin, which lacks a steering wheel or brake pedals, must still receive special exemption from NHTSA in order to see widespread deployment.

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 and learn how to address your race car’s oiling system issues. Then, return on Friday for 5 Ways to Dress Up Your Engine.