Auto Industry News: Rolex 24 at Daytona, Trade Focus Shifts to EU & UK, Tesla Has Reason To Celebrate, and Self-Driving Cars Are Still Trying to Happen

The auto industry stays on its toes this week, as new North American trade legislation begins falling into place and the administration zeros in on its next targets across the pond. Tesla seems to be on the celebratory track, shattering another stock price record and scoring a legal victory in its battle to sell EVs in Michigan. Self-driving cars make some testing headway, as GM, Waymo, and UBER roll out new models and technology in select cities across America.

Plus, Hailee Deegan had her big ISMA debut at Daytona this weekend, while the pros hit the track for the Rolex 24. NHRA announces some changes to its ‘Countdown to the Championship’ points structure, Dakar Rally racer Edwin Straver passes away, and Barrett-Jackson reports its Scottsdale sale as the highest-grossing auction in its history.

Trump Administration Shifts Trade Focus To Europe, UK

With the newly reworked USMCA trade deal set to be made official this week, the Trump administration appears to have set its sights on a new target for its aggressive trade plans: Europe and the UK.

The POTUS made his intentions clear this week at the World Economic Forum in Davos, Switzerland, threatening tariffs of up to 25% on EU-made vehicles if quick progress on a new trade deal isn’t made. “I wanted to do China first. I wanted to do Mexico and Canada first. But now that we’re all done … we are going to do Europe,” he said during an interview with CNBC.

With the U.K. set to leave the EU at the end of the month, it will work to negotiate its own trade deals, including with the United States. “Boris [Johnson, Prime Minister] and I are friends, and he wants to make a deal, and that’s OK with me,” Trump told CNBC. “We’re starting. We’ve already started negotiating.”

As for the rest of Europe, the administration could face some resistance that might stall the deal.

Officials from France, Italy, and the U.K. have all held firm in their positions for a so-called digital services tax on U.S. tech giants like Facebook, Google, and Amazon, while U.S. Treasury Secretary Steve Mnuchin responded: “If people want to just arbitrarily put taxes on our digital companies, we will consider arbitrarily putting taxes on car companies.”

The White House has even gone as far as threatening duties up to 100% on all French goods, from fine wine and cheese to expensive luxury fashion brands, in response to the proposed digital services tax.

The dynamic here is clear. The giants of Europe want a piece of the U.S. tech industry pie via these new taxes and the U.S. is willing to make European car imports the sacrificial lamb to prevent it.

“If you look at President Trump’s track record, I think he is incredibly serious,” Mike Manley, the chief executive of Fiat Chrysler, told Reuters at an industry event in Brussels. “If the parties involved approach those discussions in a serious manner it will be possible for an amicable conclusion to be reached.”

“An escalation of the tariffs is not to the benefit of anyone,” he added.

One thing made clear in the four years of the Trump administration so far, is that the White House has no issue going to bat over a trade dispute. We’ll have to see if this one gets as messy as the trade battle with the Chinese. For the auto industry’s sake, we sure hope it doesn’t.

Tesla Tribulations

Last week, we mentioned some of the troubles Tesla was facing with the NHTSA over an unintended acceleration petition, as well some self-driving accident investigations. This week, however, news is much more positive for the trendy brand.

Investors seem unconcerned with Tesla’s ongoing legal and regulatory troubles, as stock surged to a valuation of $100 billion dollars, making the EV manufacturer the first-ever publicly traded U.S. automaker to reach the mark.

While this historic accomplishment is an impressive one, many analysts expected something similar. Over the past three months, Tesla’s stock has been spiking like Elon Musk’s blood pressure after the CyberTruck press conference. According to Forbes, after hitting a low of $179 last June, the automaker’s stock rose steadily, reaching its historic peak this week.

However, not all the experts believe in Tesla for the long term. In another Forbes piece, stock analysis company, Trefis, argues that Tesla’s stock could plummet to $0 if the U.S. finds itself in another recession, as luxury cars would take a hit and the EV-maker could see its cash flows turn negative.

Even former Independent presidential candidate Ralph Nader took to Twitter to weigh in on the issue, warning Tesla “believers” to “watch out.”

So, what’s the deal here?

I can hear you nervously counting your Bitcoin through the computer screen, desperately trying to decide whether to buy into Tesla or not. Is the company a bright star destined to flame out? Or is it more like the Earth’s trusty sun, a reliable source of life and heat?

Well, we see the answer as somewhere between the two.

Sure there are risks to picking up a Model 3 of your own, but Tesla is taking some steps in the right direction. Only last week the company won a years-long legal battle to sell, deliver, and service cars in Michigan. Before, interested buyers would have to purchase the car online, then go to a surrounding state to pick it up and have it serviced.

More context, via CNBC: “Tesla sells all of its cars through company-owned stores, rather than dealerships which are independently-owned businesses. That makes Tesla unique—its other American rivals use a dealership model. Each state has dealership laws controlling the sale of vehicles. Those laws in Michigan prevented Tesla from selling and servicing the vehicles.”

The potential downside to this news, however, is that Tesla likely just opened the door for its competition.

Rival Rivian raised $3 billion last year, thanks to deep-pocket backers like Ford, Amazon, and Cox Automotive. The EV upstart’s attractive R1T pickup and R1S utility vehicle go on sale late this year, with a “really positive” number of pre-orders already, per CEO R.J. Scaringe.

Additionally, Rivian has stated that its base model pricing will now be lower than initially expected. With two desirable models on the way, plus an electric luxury SUV for Ford and a fleet of electric commercial delivery vans for Amazon, it’s safe to say there’s a new kid in town…

Self-Driving Cars Slowly Making Self-Driving Moves

Speaking of the potential to be the future of the auto industry whether we like it or not… let’s talk self-driving cars! The robots had themselves a big week.

This week in San Francisco, GM showed off its innovative Cruise Origin shuttle—a self-driving vehicle that’s designed to be spacious, passenger-friendly, and … boxy. The pod-like unit is fully electric and fully self-driving. As in, there isn’t a driver’s seat, pedals, or steering wheel. As in, there are no manual controls. Thank heavens for those several interior cameras though, meant to “monitor the safety of people and onboard cargo.”

GM seems confident about the project, announcing on Monday morning that it would pump another $3 billion into more all-electric trucks and self-driving vehicles just like it.

So, if you’re in the Bay Area, keep an eye out for any giant silver toasters on wheels if you need a ride, I guess.

However, it’s not just San Fran residents who should keep one eye out for autonomous vehicles.

Waymo announced last week they’ll start testing self-driving long-haul trucks in parts of Texas and New Mexico in search of “interesting and promising commercial routes.”

Cool, as if passing a tractor-trailer wasn’t terrifying enough, now we have to worry about whether our robot overlords have regard for human life on the highway. Sounds great and not at all like nightmarish and dystopian news out on the interstate.

Not even the nation’s capital is safe, with UBER rolling out its self-driving murder machines in D.C. this week. Don’t worry though, according to Reuters the autonomous cars will still have people at the wheel… making them user-operated self-driving cars. So… just cars?

Whatever they’re calling it, the company said it hopes “this first round of manually-driven data collection will lay the foundation for testing our vehicles in self-driving mode in Washington, DC.”

So, keep an eye on that the next time you’re looking to see the White House or Washington monument. There’s user-operated self-driving cars on the loose…

Around the Circuit

Hailie Deegan Makes Her IMSA Debut

Budding racing superstar Hailie Deegan’s first race was a mixed one, to say the least.

Deegan and her teammate for the day, NASCAR Xfinity driver Chase Briscoe, finished 43rd of 51 teams competing in Friday’s Michelin Pilot Challenge at Daytona International Speedway. Despite running as high as 15th early in the race, mechanical issues marred the last quarter of the race, ending her day early.

“I feel like I just gained a lot of experience,” she said. “I just feel like I know a lot more about racing than I did before. And that’s why I’m here and [what I’m] supposed to be doing.”

Deegan told the press after the race she struggled most with the increased number of cars on the track during the action. “The traffic is a little difficult to deal with; it’s not bad, though,” Deegan said. “It makes it fun. It makes it interesting. You constantly have to be on your toes.”

Wayne Taylor Racing Wins Rolex 24 Hours at Daytona

The grueling Rolex 24 at Daytona endurance race wrapped up on Sunday, with Wayne Taylor Racing nabbing its second consecutive win—the third time in four seasons and fourth time overall.

Kamui Kobayashi guided the team’s No. 10 Konica Minolta Cadillac DPi-V.R across the finish line more than a minute ahead of pole-sitting team of Oliver Jarvis, Tristan Nunez and Olivier Pla in the No. 77 Mazda Team Joest Mazda DPi.

Joining Kobayashi on the podium were teammates Regner van der Zande, Scott Dixon, and Ryan Briscoe.

NHRA Makes Changes to Countdown to the Championship Points Structure

NHRA Mello Yello fans will see some new stuff come next year’s Countdown to the Championship. Here’s a brief rundown of the changes:

• Top Fuel and Funny Car drivers who compete in all 18 events in the regular season and run a minimum of two qualifying sessions at each event will earn a playoff spot.
• Pro Stock and Pro Stock Motorcycle drivers who compete in all 13 events or 11 events respectively and run a minimum of two qualifying sessions at each event will earn a playoff spot.
• First and second-place finishers in the Nitro category will be separated by 20 points and each consecutive position will be separated by a 10-point differential. In Pro Stock and Pro Stock Motorcycle, first and second place will be separated by 20 points while second through fifth place will be separated by 10 points and all following positions will be separated by five points.

NHRA officials made these changes to better reward driver endurance and encourage participation in regular season events, improving things for NHRA fans everywhere.

Edwin Straver Dies After Dakar 2020 Crash

The racing world suffered a tragic loss this week when Dutch motorcycle driver Edwin Straver passed away after an accident during the 2020 Dakar Rally.

The 48-year-old driver’s KTM 450 EXC motorcycle crashed on the penultimate stage of the Saudi Arabian marathon, sending him into a several-day coma. Doctors removed Straver’s breathing tube last week, after he was transported back to the Netherlands to be with his family.

Straver is the second rider to pass away from a crash in the 2020 edition of the rally after 2015 runner-up Paulo Gonclaves died in a high-speed wreck during the seventh stage on January 12.

Barrett-Jackson Scottsdale Smashes Auction Records

Racking in more than $141 million (including auction fees), Barrett-Jackson reported its Scottsdale auction as its most lucrative in the auction house’s history.

$129.7 million came in from a docket of over 1,900 vehicles (the largest ever for Barrett-Jackson) with $7.6 million raised through nine charity car sales, including the very first production 2020 Chevy Corvette. An additional $3.7 million rolled in from the sales of 1,200+ pieces of automobilia including unique items like vintage dealership signs, hood ornaments, gas pumps, garage relics, and more.

In addition to the mid-engine ‘Vette, special attractions at Barrett-Jackson Scottsdale included the personal collection of deceased Fast and Furious actor, Paul Walker, whose 1995 M3 Lightweight sold for a staggering $385,000 as well as a custom Chip Foose 1968 Plymouth GTX that sold for $300,000, benefiting the C4 Foundation.

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 like King of the Hammers, Lucas Oil NHRA Winternationals, 54th World Series of Asphalt Stock Car Racing, and Daytona 500, as well as informative product reviews, vehicle spotlights, auto show/expo features, and more.