Auto Industry News: Racing Revs Up, Aftermarket Stays Hot, & Industry Tensions Grow Heated

Looking at the auto industry’s last couple weeks, one can’t help but think of Sam Elliot reminding the Dude that “sometimes you eat the bear… and sometimes the bear eats you.” Current headlines read like someone accidentally cranked up the dial on current events, taking supply chain frustrations, global tensions, and gas prices to unsettling new heights. The Engine Block unpacks some of the big happenings – and how they impact you as a consumer.

But first…!

It’s important to remember that there’s always a bright light somewhere. And, in this case, it’s the current racing scene. Several series have kicked off their 2022 seasons, revving up excitement for winter-weary enthusiasts.

Racing Season Starts Off With a Bang

From NASCAR to NHRA, racing is coming in hot. Here’s a round-up of what you may have missed.

NASCAR

The Daytona 500 opened the 2022 NASCAR season on Sunday February 20, with rookie Austin Cindric taking the flag for Team Penske — on owner Roger Penske’s 85th birthday, nonetheless. Bubba Wallace followed in second place (for the second time – ouch) in a very close finish (merely .036 seconds behind – double ouch). According to CBS Sports, Cindric is now the ninth driver in history to earn his first career Cup win in the Daytona 500, and the second in a row to do so.

Other highlights from the 2022 Daytona 500 included:

• Crashes – a lot of them. More than two-thirds of the 40-car field incurred damage. (Although, amazingly, that constitutes the fewest number of cars in accidents in that race since 2016.)
• Hiccups for the Next Gen car. The Daytona 500 marked the very first points race for NASCAR’s new car, and it appears the vehicle’s forged wheels and single lug nut caused a few headaches. Both Kaz Grala and Justin Haley lost wheels during the race, resulting in safety violations for the teams.
• A feather in Ford’s cap. A trio of Ford drivers rounded out the top five with Chase Briscoe, followed by Ryan Blaney and Aric Almirola.
• Massive in-person interest. The year’s 64th race was completely sold out, drawing a crowd of more than 100,000 people. TV ratings continue to slide downward, however, with just under 9 million viewers tuning in. (The highpoint for Daytona 500 TV viewership came in 2013, when 16.6 million watched Jimmie Johnson take the win.)

NASCAR took to the Auto Club Speedway this past weekend, where Kyle Larson nabbed his 17th career victory after forcing teammate Chase Elliott into the wall late in the race. Next weekend, drivers head to Las Vegas Motor Speedway for an exciting tripleheader.

NHRA

NHRA opened its season on the same weekend as NASCAR, with the annual Winternationals. Justin Ashley, Robert Hight, and Erica Enders collected big wins in Top Fuel, Funny Car, and Pro Stock, respectively.

This past weekend, drivers competed in the Arizona Nationals. There, Robert Hight won his second straight Funny Car title of the season while Mike Salinas (Top Fuel) and Aaron Stanfield (Pro Stock) scored their first wins of the new season to close out an amazing weekend of racing.

Gatornationals are next on the schedule, March 10-13.

IndyCar

IndyCar wrapped its season-opener yesterday in sunny Florida, and it turned out to be another celebration for the Penske crew. Pole-winner Scott McLaughlin took his first victory at the Firestone Grand Prix of St Petersburg, after holding off reigning champ Alex Palou by half a second. McLaughlin’s teammate Will Power finished third, with Colton Herta and Romain Grosjean rounding out the top five.

Drivers head to the Texas Motor Speedway on March 20 for the XPEL 375 where NASCAR champ Jimmie Johnson will compete for the first time on an oval track in the NTT IndyCar Series.

Trans Am Series

Trans Am racing roared into the 2022 season this weekend where the series started – Sebring International Raceway. The event was marked by an impressive entry list of 68 cars. According to Racer, TA2 rolled in with 48 competitors, composing the largest TA2 field to ever take the green flag at Sebring, and the second biggest TA2 field of all time. Vehicles also debuted new 18-inch tires from title sponsor Pirelli, mounted to brand-new Forgeline TA3R wheels. The tires are designed to improve drivability and allow for bigger brakes.

Chris Dyson dominated the Sebring TA race from green flag to checkered finish, winning by more than a minute ahead of second-place finisher, Wally Dallenbach. Dyson entered as TA title holder, as well as the winner of last year’s Sebring race. TA2 followed a similar trajectory with 2018 and 2021 champion Rafa Matos earning the pole and dominating the race to victory. Matos, who led 25 of 27 laps, did face a late-race challenge from teammate and 2020 champion Mike Skeen but regained the lead in the closing laps to earn the race victory.

In good news for all Trans Am drivers, the series recently announced a new television package to air this year’s races in prime time on CBS Sports Network. The new slot promises to bring more attention to the sport, and hopefully some new fans. For those wishing to tune in live, the entire line-up of SpeedTour events streams for free on the SpeedTour TV YouTube page.

Trans Am next hits the Charlotte Roval March 17-20 as the first leg of a back-to-back weekend with SpeedTour. After that, they tackle the always-competitive Michelin Raceway Road Atlanta March 24-27.

Industry Happenings

Tensions – like prices – continue to rise both in and around the automotive industry. And while it might feel like the entire industry is on par with the cargo carrier of VWs and Porsches smoldering out in the middle of the ocean, there are a few bright spots on the horizon.

Here’s what you may have missed:

Gas Prices Up & Rising

AAA noted in a report last week that gas prices were at an 8-year high, thrusting the national average up four cents in one week to $3.48. As of today, February 28, 2022, AAA places the average at $3.61. That number is roughly $1 higher than this time last year, and about 50 cents lower than the highest recorded average price of $4.114 in July 2008.

The jump comes on the heels of rising crude oil prices, which are themselves a result of the Russian invasion of Ukraine.

“The Russian invasion of Ukraine has sparked high level concern that oil production could eventually be stifled, or even sanctioned, from the world’s second largest oil producer, leading to less supply as demand grows,” explains Patrick De Haan, head of petroleum analysis at GasBuddy. “That possibility has pushed up the national average price of gasoline considerably in the last week, and the situation could worsen at any time, keeping gas prices elevated for the foreseeable future.”

Events are unfolding quickly and changing rapidly in Ukraine. As of the time of this writing:

• Western sanctions targeting Russia’s central bank have seen the ruble drop a record 30%, sending the country’s currency into free-fall.
• The first round of Ukraine-Russia talks aimed at ending the fighting between Moscow and its smaller neighbor concluded with no immediate agreements.
• The invasion has shut down auto factories, hit steel supplies, and severed transportation routes, dealing new blows to the world’s already battered supply chains.

On perhaps a brighter note for consumers, the White House is expected to cut back mandates requiring the use of ethanol after a new study finds the corn-based fuel is worse for the environment than regular gasoline. Read more here.

February New Vehicle Sales Freeze Up

Tight inventory is causing February new-vehicle sales to grow sluggish. Cox Automotive predicts a mere 1.08 million units to sell this month, a drop of 11% compared to February 2021. Despite the drop, total tallies should finish 8% higher than last month.

Manufacturer and dealer profits remain high, however. JD Power and LMC Automotive note new-vehicle prices continue to maintain “record levels” with average transaction prices expected to reach $44,460.

They’re also selling like hotcakes! “This month, nearly 53% of vehicles will be sold within 10 days of arriving at a dealership, while the average number of days a new vehicle is in a dealer’s possession before being sold is on pace to be 20 days—down from 54 days a year ago,” says Thomas King, president of the data and analytics division at J.D. Power.

If you’re looking to sell a used vehicle, the market is still looking good. “The average trade-in equity for February is trending towards $9,663, a 93.0% increase of $4,657 from a year ago,” adds King.

Ranger Raptor Heading Stateside

What’s this? Good news?!

The Ford Ranger Raptor high-performance pickup is officially hitting U.S. markets – and perhaps a little sooner than anyone anticipated. Expected to go on sale in 2023, the new Ranger Raptor is a mid-sized monster sporting a more powerful engine and bevy of off-road goodies.

Details are sparse on the U.S. version – but the European version just debuted with the same twin-turbo 3.0-liter V-6 engine found in the Bronco Raptor, which is good for 392 horsepower and 430 pound-feet. Car & Driver notes a 10-speed automatic transmission and four-wheel drive are standard, as is a two-speed transfer case and front and rear locking differentials.

Other highlights include:

• 5-inch diameter Fox shocks
• Seven selectable drive modes
• Four selectable exhaust modes to suit different driving scenarios
• Anti-lag system which keeps the turbochargers spinning for up to (3) seconds after the driver backs off the throttle
• Wider body, higher ride height, and increased ground clearance
• 33-inch BF Goodrich K02 all-terrain tires and optional 17-inch bead-lock-capable wheels
• Updated interior with 12.0-inch vertically oriented touchscreen and a digital gauge cluster

EV Interest Doubles

Considering recent environmental pushes and the steady upward march of gas prices, it might not come as a total surprise that EV interest is rising. A recent Cars.com survey indicates 66% of Americans have a renewed interest in EVs following the current administration’s infrastructure plans. However, 81% of respondents report that barriers remain, obstructing the path to purchase.

While excitement is clearly growing – and should continue to rise as a barrage of electric pickups hit the market over the next couple years – the company predicts mainstream adoption is still about a decade away.

Read more about the survey’s results here.

Aftermarket Stays Hot, Hot, Hot

Things are still looking very good on this side of the industry, despite current pressures. And while mainstream EVs are certainly on the horizon, it is clear consumers are not scrambling to throw away their current gas-drinking transportation. In fact, data shows many consumers are choosing to hold onto their vehicles for longer in the face of such a wacky market. IHS Markit places the average age of a car on U.S. roads at 12.1 years.

The unfolding crisis in Ukraine will likely push that age up higher. In addition to further complicating supply chains, Russia is a key supplier of palladium – a precious metal used to make catalytic converters. Semiconductor chip production will see more snags too, as Ukraine exports 70% of the world’s neon gas – a purified version of which is crucial to manufacturing microchips. This means new-vehicle prices will likely climb higher. It also means those folks who are eager to get into an electric vehicle may find a longer wait time than they’d like.

ICE vs EV

If there’s one thing the aftermarket does well, it’s pivot. And whether EVs enter the mainstream tomorrow or ten years down the road, many manufacturers are already preparing for the transition.

Automotive News notes that nearly 100 traditional ICE components will be eliminated in the shift to EVs, including fuel system and exhaust system parts. However, many will carry over, such as vehicle suspension and steering systems, brakes, batteries, and body parts/accessories. Additionally, EVs will require 41 new components, says the publication, most of which are electrical or electronic with no moving parts.

Preparing for the Inevitable

One company already investing big in this arena is AEM Performance Electronics. When the manufacturer announced it was developing a line of electronic controls for EV conversions and racecars a few years ago, Director of Marketing and PR, Lawson Mollica, admits “I can’t imagine what people were thinking!”

“Thankfully though, from the business side to the engineering side we saw an opportunity and took it, and through a combination of great leadership from upstairs and hard work from our development team we are the first to offer a comprehensive line of electronics for EVs,” he says.

With several trends on the bubble in the EV segment, including new racing classes, dedicated EV series, and EV-enthusiast events, Mollica sees that opportunity growing.

“The hottest trend we are seeing right now is traditional performance shops who want to learn how to do EV conversions,” he says. “Whether they have customers coming in the door asking about EV swaps, or they have concerns about tightening emissions regulations at the state and federal levels, the volume of calls has increased considerably. There are many traditional shops out there right now working on their first conversion so they can start offering them.”

He points to exciting new products from AEM for 2022, including the EV Controls System for the Tesla Base Drive Large Drive Unit (LDU) for EV swaps as well as the Tesla Sport Drive LDU and the Small Drive Unit (SDU) that is used for the front drive in AWD Teslas.

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 a rundown on recovery gear!