Auto Industry News: Rivian R1T Wins Rebelle Rally, UAW Squeezes A Few More Pennies From Automakers, & Tesla Has A Tough Earnings Call

Another contentious week for the Detroit Three and the UAW, with two automakers making notable concessions that union leaders say still leave room for improvement. The Engine Block has the details on what went down at the bargaining table this past week, along with some insight on how the strike is hitting manufacturers’ pockets.

Plus, Toyota offered a sneak peek at a new sedan, NHTSA turns a sharp eye to Cruise, and the Ringbrothers announce what custom builds they’re bringing to this year’s SEMA.

But first… the 2023 Rebelle Rally came to an end on Friday and saw its first-ever electric vehicle at the top of the podium.

Rebelle Rally Sees Electric Finish

The eighth Rebelle Rally wrapped up on Friday after a punishing competition in the California and Nevada deserts. The ladies-only event, which covers more than 1,500 miles of unforgiving terrain over eight days, is a grueling test of grit, determination, and serious navigation skills.

With cellphones and GPS devices strictly prohibited, competitors must rely on maps and compasses to guide them through a series of challenges, from finding hidden checkpoints in the sand to mastering precision on-route enduros designed by Dakar legend Jimmy Lewis.

This year was one of the hardest ever, according to competitors, with plenty of firsts – including new locations, an additional marathon stage, and an EV in the winner’s circle.

The Rivian R1T, piloted by Rivian employees Lilly Macaruso and Alex Anderson took first place in the 4×4 class – jumping up three spots from last year. More impressive, the truck was also part of the “bone stock” designation, meaning it won the longest off-road rally in the entire United States with zero performance modifications aside from aftermarket tires.

Rounding out the podium in the 4×4 class were past champions Nena Barlow and Teralin Peterit in second with their Jeep Wrangler Rubicon 4xe, and last year’s third-place finishers Laura Wanlass and Maria Guitar in third again, this time with a Ford Bronco Raptor.

In the X-cross class, victory went to Melissa Fisher and Jessica Moore in a 2022 Ford Bronco Sport. This is the fourth consecutive win for the Bronco Sport, which now has quite the stranglehold on the crossover class. Rounding out the podium were two brand new vehicles that showed their prowess. The BMW X2 M35i piloted by veteran competitors Rebecca Donaghe and Sedona Blinson and a 2024 Kia Telluride X-Pro piloted by Verena Mei and Susie Saxten.

Want to learn more about the Rebelle Rally and what it takes to be a competitor? Check out our pre-rally interview with rookies Lani Trejo and Danielle Cheifetz – who finished 26/54 in the 4×4 class and #6 of all rookies!

In Case You Missed It…

The multi-award-winning Ringbrothers offered previews for the three custom builds they plan to unveil at the 2023 SEMA Show. They include:

• “Tusk,” a 1,000-hp 1969 Dodge Charger wearing Stellantis’ supercharged “Hellephant” 7.0-liter V-8 crate engine;
• “Uncaged,” a 1965 Ford Mustang convertible featuring a unique wide-body design; and
• “Paramount,” a 640-hp 1961 Rolls-Royce Silver Cloud II that is expected to steal the show.

The show cars represent more than 10,000 combined build hours, Ringbrothers said, and will be unveiled on Oct. 31 at three different SEMA booths throughout the day.

UAW Update

As the UAW’s standup strike wrapped up its fifth week, two of Detroit’s Big Three made “serious movement” at the bargaining table, according to union president Shawn Fain. Stellantis and GM both made wage offers matching Ford’s 23% over the life of a four-year contract. However, Fain said “there’s still room to improve.”

He also had choice words about Ford, stating that “the days of the UAW and Ford being a team to fight other companies are over.”

On Oct. 11, Fain directed 8,700 UAW workers to walk out of the Kentucky Truck Super Duty factory – a cash cow production facility for the automaker. Since then, Ford has not returned with a new offer and remains steadfast in its claim that it cannot afford to go any higher on wage and benefit concessions. The company also says that, among the three automakers, its contract offers to the UAW have been the most generous.

Currently, about 23% of the UAW’s 146,000 members are on strike. That translates to roughly 34,000 workers at six vehicle assembly plants and 38 parts distribution warehouses.

Money, Money, Money

According to JP Morgan analyst Ryan Brinkman, the strikes are costing GM and Ford more than $500 million. He estimates that, per day, they are losing $21 million and $44 million, respectively.

The mounting costs seem to have both automakers rethinking their ambitious EV manufacturing plans. Ford, which already hit the brakes on a planned $3.5 billion battery plant earlier this month, just cut a shift at the factory that builds F-150 Lightning electric pickups. The move comes less than three months after it hired 1,200 workers to expand production.

Similarly, GM said it is pushing back Silverado EV truck production until 2025. The company insisted the delay is not a result of the strike, but rather “evolving” EV demand. Regardless, it comes as a surprise to workers at the Orion assembly plant, where GM planned to spend $4 billion retooling for EVs. The delay could keep the plant down for almost two years.

Interestingly, Stellantis does not seem to be cutting back on EV production like its Detroit competitors. In fact, it’s doing quite the opposite. On Oct. 18, Stellantis NV laid out its plans for success in the commercial vehicle market – which largely hinges on launching four electrified pickup trucks in North America over the next two years, including the new Ram 1500 REV in 2024 and a new hydrogen solution to come.

That doesn’t mean the automaker isn’t finding other ways to cut costs. Like GM and Ford, Stellantis has furloughed workers as a result of the strike. But most notably, it just canceled its presentation at the CES tech show in January.

The company issued a statement saying it is “executing comprehensive countermeasures to mitigate financial impacts and preserve capital, and will continue to demonstrate its transformation into a mobility tech company through other means.”

Did you know…?

The legacy automakers and union workers do agree on one major front: both groups deem the Biden administration’s proposed emissions targets ‘unrealistic’. The strict standards aim to drastically cut CO2 emissions and simultaneously push EV market share to 67% by 2032.

Penalties for non-compliance could be as much as $14 billion for manufacturers – money that could go toward any number of business-building endeavors (like EV production), and which the UAW would certainly prefer go to factory employees. Tesla, the perpetual pot-stirrer, made comments on Tuesday urging the feds to adopt even tougher fuel economy standards. The EV maker cited climate change, but it’s worth pointing out that combustion constraints also benefit its bottom line.

What Else You Need To Know This Week

Here are a few additional headlines we’re watching and think you should too.

Toyota Drops a New Teaser

In what seems to be Toyota’s new go-to marketing tactic, the automaker released a shadowy teaser photo on Thursday of a new mystery vehicle. The sedan-esque shape could be a new Camry, as the model’s current generation dates back to 2018 and hasn’t seen much in the way of updates since then.

The automaker didn’t provide much to go on, simply posting the headline “A New Dawn is Coming,” and asking “Can you guess what’s on the horizon?”

NHTSA Takes Closer Look at Cruise

On Monday, NHTSA’s Office of Defects Investigation (ODI) brought GM’s Cruise under closer scrutiny. The federal safety regulators opened an official investigation into the self-driving tech company after several reports of autonomous robotaxis not using proper caution around pedestrians. NHTSA cited two reports involving pedestrian injuries as well as two “relevant” incidents from videos on social media.

The ODI said the investigation will “help determine the scope and severity of the potential problem, including causal factors that may relate to ADS driving policies and performance around pedestrians, and to fully assess the potential safety risks.”

In a prepared statement, Cruise said it plans to cooperate with all NHTSA requests for information and defended its safety record — particularly as it compares to human drivers.

The investigation, which pertains to an estimated 594 self-driving vehicles, comes at a bad time for Cruise. The company recently began testing its vehicles in Dallas, Texas and plans to officially roll out its robotaxi fleet there in the coming months.

Tesla Has a Tough Earnings Call

Tesla reported its third-quarter results after the bell on Wednesday – and rang out a pretty pessimistic note. In addition to missing both earnings and revenue expectations, the company’s CEO Elon Musk expressed concern over current economic conditions. He pointed to high interest rates and stressed the importance of making Tesla products more affordable. “I just can’t emphasize enough how important cost is,” he said.

So important, it seems, that he feels it is prudent to slow down the company’s plans to build a new giga-factory in northern Mexico. Musk previously said the $10 billion endeavor would start production in 2025.

The bit of news that really seemed to set investors into a tizzy, however, pertained to the Cybertruck. While Musk confirmed first deliveries were still on track to arrive by Nov. 30, he put a damper on any optimistic financial expectations for the avant-garde pickup truck. “It’s a great product, but financially, it will take a year to 18 months before it is a significant positive cash flow contributor,” he said, adding that Tesla “dug its own grave” with the Cybertruck, which will be “incredibly difficult to bring to market to reach volume.”

Tesla stock closed out the week down 15%, marking the company’s worst week of the year.

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 a primer on maintaining off-road recovery gear and then come around on Friday for the next installment of Competition Corner. We’ll be counting down the can’t miss events for November.