Auto Industry News: Tesla Sets Its Sights on Berlin, Ford Debuts Mustang EV Crossover Mach E, FCA Has Its Hands Full, and Racing Results

It’s been a big, fine weekend for EVs, as Tesla announces Berlin for its new Gigafactory locale and Ford debuts its Mustang-inspired electric crossover, the Mach E. Fiat-Chrysler has managed to annoy its investors, dealerships, and the UAW, all in time for its pending merger with PSA. And racing enthusiasts had a lot of excitement to consume over the weekend, as F1, NASCAR, and NHRA drivers all hit the pavement.

Tesla Picks Berlin for New Gigafactory

American car manufacturer Telsa made major waves this week after CEO Elon Musk announced plans for a “European Gigafactory” in Berlin at an awards ceremony, later confirming with a few tweets. Musk said the new factory would produce batteries, powertrains, and vehicles, starting with the company’s upcoming Model Y crossover.

“Everyone knows that German engineering is outstanding, for sure. That’s part of the reason why we are locating our Gigafactory Europe in Germany,” said Musk. “We are also going to create an engineering and design center in Berlin, because Berlin has some of the best art in the world.”

This marks Tesla’s fourth Gigafactory and confirms years of speculation about the company breaking into Europe. Musk himself has said that UK was a consideration, but the economic instability due to the looming Brexit forced a change in plans.

https://twitter.com/elonmusk/status/1194364798407852032

The enthusiastic embrace of a fully-electric automaker like Tesla is fitting for the Germans. They’ve long been committed to reducing emissions and embracing the cleaner, greener electric future. The nation’s total greenhouse gas emissions have fallen the most of any country since 2009 and renewable energy accounts for an astounding 38.2 percent of all the power they consume.

That push for more eco-friendly energy sources and vehicles is a key reason why Germany has welcomed Tesla with open arms. In fact, the German Economy Minister Peter Altmaier called the announcement a “glorious success” for the country’s attractiveness to the auto industry.

Along with Tesla’s Chinese Gigafactory in Shanghai up and running, it’s clear the brand has eyes on several global markets.

Ford Unveils Mustang-Inspired EV “Mach E” Ahead of LA Auto Show

Speaking of electric cars… Ford unveiled its new Mustang-inspired EV on Sunday, ahead of the 2019 LA Auto Show.

The new Mach E, renamed from the original Mach 1 after “a very strong reaction” from online Mustang uber-fans, is considered part of the ‘stang family, but definitely looks more like a distant cousin than a sibling. Stylistically, the similarities are visible. The new Mach E shares some pointed design language with its infamous relative, most notably in the front fascia (even with the grille gone) but also in the sporty proportions, slim headlights, and three-bar taillights.

Spirited driving is delivered via a standard-range or extended-range battery pack that feeds one electric motor mounted on the rear axle, or an optional dual-motor setup mounted to both axles. According to Car and Driver, “That latter combination creates all-wheel drive, and when equipped on the sporty GT model, the motors combine to make 459 horsepower and 612 lb-ft of torque. Ford claims this will send the Mach-E from zero to 60 mph in under 4 seconds.”

“A Crossover with the Heart of a Mustang”

Price-wise, the new Mach E is comparable to its Tesla Model Y competitor. Ford’s new baby will start around $45,000, with the most expensive version reaching around 60k. Tesla’s crossover sits between $47k-$60k. However, Ford EVs qualify for a $7,500 tax credit, an advantage that could play a major role in sales figures.

Ford has also announced plans to add a hands-free highway driving mode to the Mach E after launch, comparable to Tesla’s Autopilot feature and GM’s Super Cruise system. This, combined with the automaker’s recent commitment to create a massive network of over 12,000 charging stations across the U.S. seems to point in the direction of Ford getting serious about EV innovations.

Set to hit U.S. streets as soon as next fall, with the performance edition debuting spring 2020, the Mach-E can be preordered now for any EV-hungry consumers on the hunt for a slick, stylish SUV-style electric vehicle.

FCA Irks Investors, Dealerships, and UAW

Shifting away from EVs, let’s zoom in on traditional cars for a moment, shall we? More specifically, let’s break down why Fiat Chrysler is flooding dealerships with way too many cars.

A recent report from Bloomberg reveals that FCA has been “manufacturing more cars and trucks than its U.S. dealers are willing to accept, at one point creating a nationwide stock of about 40,000 unordered vehicles and stoking tension with some of its retailers.”

Bloomberg said the massive oversupply started coming as FCA sought merger opportunities (a well-covered issue here at The Engine Block) building up a so-called “sales bank.”

Such a practice is pretty much universally frowned upon, as it obscures an automaker’s inventory figures and puts pressure on dealerships to move surplus inventory. FCA has actively denied it is building a sales bank, instead pointing towards a “predictive analytics system” instituted earlier this year with the goal of aligning manufacturing with “anticipated deal orders,” according to Bloomberg. However, if your own dealerships are anonymously complaining to media outlets about being up to their eyeballs in surplus vehicles, maybe the system’s a little wonky…

Unfortunately for FCA, that’s not the only troubling news they’re dealing with this week.

FCA, UAW Labor Talks Are Heating Up

Talks between the United Auto Workers and FCA have been heating up recently, with the major focus on the Italian-American automaker’s contingent of temporary and lower-paid production workers.

According to The Detriot News, the UAW has shifted its full focus onto FCA, after successfully working out new contracts for their members with Ford and GM. The stressor for the automaker lies in the fact that its UAW workforce of 47,200 consists largely of temporary and lower-paid production workers. (An employee tier that saw significant labor concessions during GM and Ford negotiations.)

“That is the dilemma Chrysler is in with having more of these workers that represent a bigger portion of the voting public when it comes to ratification,” said Art Schwartz, a former labor negotiator at GM and president of Labor and Economics Associates in Ann Arbor. “I expect Chrysler is going to look for some relief, and I don’t think they’re going to get it.”

These talks, along with the sales bank fiasco mentioned above, come at a bad time for FCA. The coming merger with French automaker Groupe PSA is a huge deal for the Detroit automaker. One that they need to lock down and work out with as few distractions as possible. (And I’m no expert on labor or economics, but FCA seems to be dealing with a lot of distractions at the moment.)

Around the Circuit

Formula 1

Red Bull’s Max Verstappen passed out Lewis Hamilton twice on his way to a brilliant victory in Brazil.

Despite Verstappen being in control from the start and a deserved winner, that didn’t stop the race from being jam-packed with crashes and drama. Sebastian Vettel and Charles Leclerc collided while fighting for fourth place, followed by Red Bull’s Alexander Albon crashing with Hamilton.

For a penultimate race of the Formula 1 season, the Brazilian Grand Prix was one for the ages. It was a remarkable end to one of the most incident-packed races in recent memory.

“What a race!” Verstappen said. “Loved it.”

Next up for F1 drivers is the Abu Dhabi Grand Prix on Sunday, December 1 at Yas Marina Circuit.

NASCAR

Monster Energy Series

Kyle Busch locked up his second Monster Energy Series title this weekend with an impressive display at Homestead-Miami Speedway, beating out what might have been the stiffest competition in the six years of the elimination-style format.

Busch outran fellow finalists Denny Hamlin, Kevin Harvick, and Martin Truex Jr. in the season-ending Ford EcoBoost 400, beating out the field with clever pit strategy and a top-notch car.

Overcome with emotion after the race, Busch took the time after the race to thank his team, fans, and owner for their support throughout the season. “There’s always your doubters, there’s always your haters,” Busch said smiling. “You know what? This one’s for the Rowdy Nation. You guys are the best. Thank you so much.”

The win makes Busch only the 16th driver to win more than one premier championship series and the first driver to win a second title in the elimination-style format.

Xfinity Series

Tyler Reddick won Saturday’s Ford EcoBoost 300, securing his second straight NASCAR Xfinity Series championship with a bang. The 23-year-old made history, becoming the first driver to win consecutive titles for two different car owners with a career-best six victories this season.

“It’s about this race team, man, and I was just honored to pilot this Richard Childress Racing Chevrolet,” Reddick said. “I’m losing my breath — I’m that excited. This one means so much more. It was just a lot better year, and it was really cool to go back-to-back.”

As an additional reward for Reddick after the win, he gets to choose the name of his soon-to-be-born son. He made an agreement with his girlfriend Alexa De Leon that if he locked up the championship this weekend in Miami, they’d name their son Beau, despite De Leon having another name in mind.

Needless to say, Reddick has a lot to celebrate this weekend.

Gander Outdoors Truck Series

Austin Hill capped off his 2019 season with a win at Miami-Homestead Speedway this weekend but unfortunately fell short of capturing the title. Finishing an impressive 1.569 seconds ahead of series championship Matt Crafton in the Ford EcoBoost 200, Hill won all three stages and led a race-high 56 laps.

For Crafton, however, this marks a three-title mark, equaling Jack Sprague’s three and only exceeded by NASCAR Hall of Famer Ron Hornaday Jr.’s four. Further making history, Crafton is now the only driver ever to win back-to-back Gander Truck series titles.

“It feels amazing and we’re one step closer to what Hornaday’s done,” Crafton said after climbing out of his car, noting many underestimated his No. 88 ThorSport Racing Ford team. “And they called us the underdog.”

NHRA

In the final weekend of NHRA action for the year, it was a day to remember for the reigning champions.

Top Fuel – Doug Kalitta came out on top of Richie Crampton in a tight battle this weekend, improving his record all-time over Crampton to 14-8. Kalitta had the starting line advantage and never trailed, locking in his third Wally of the season and 47th win of his career.

Funny Car – Jack Beckman beat out Robert Hight for the win this weekend, overcoming Hight’s 26-20 all-time record advantage. A rematch of the finals from last year, Beckman capped off his fantastic season with a 2019 championship.

Pro Stock – Jeg Coughlin improved his 4-1 all-time record over Fernando Cuadra this weekend, marking their first time meeting in the finals. Despite Cuadra holding the starting line advantage, Coughlin overcame the odds. This is his second Wally of the season and 63rd win of his career overall.

Pro Stock Motorcycle – Jianna Salinas finished ahead of Jerry Savoie for the first time in a final round this weekend, crowning Andrew Hines the 2019 champion. Salinas won the race with ease, upsetting Savoie and denying him the PSB Championship.