Auto Industry News: Trans Am SpeedFest Hits the West Coast, Lyft Exits Stage Left on Self-Driving Cars, and My Used Ride Is Worth HOW Much Right Now?!
It’s another busy week for the auto industry as racing events regain their foothold in some of the hardest-hit COVID areas, used car prices absolutely skyrocket, and gas prices begin creeping up to a level that has many people questioning the charges on their bank statements. Plus, Lyft scampers behind Uber in selling off its autonomous driving subsidiary, wringing its hands and mumbling something about “bottom lines” and “new adventures.”
Turns out self-driving cars are kind of hard to make. Who knew?!
In the world of vehicles still operated by talented human drivers, both the Trans Am Series and the NHRA had exciting races this past weekend. Enjoy a recap of the action, below!
Trans Am SpeedFest at WeatherTech Raceway Laguna Seca
The race gods giveth, and the race gods taketh away.
Hot off his win at Trans Am’s last event in Road Atlanta, Boris Said drove into Laguna Seca determined for victory. Unfortunately, with just 10 laps remaining, Said made an aggressive move to get by Chris Dyson in Turn 1 on a restart. Making contact, Said’s No. 2 Challenger tore off the left-rear valve stem on Dyson’s dominant No. 20 Mustang, sending him to the pits for a new tire.
In a post-race review, the pass earned Said a painful 40-second penalty, sending him back to fifth place overall and fourth in class. Victory was instead awarded to Tomy Drissi, who very matter-of-factly stated that while he “didn’t want to win the race like this,” he knows what it’s like to suffer a race-determining penalty, “so I’ll take it.”
Honestly? We hear ya, Tomy. Fate can be fickle – take those breaks where you can get ‘em.
For what it’s worth, Said does intend to protest, so results are still provisional. Following Drissi in “second” and “third” are Trans Am driver Humaid Masaood and Erich Joiner from the XGT class.
TA2
In a similar origin story, defending champ Mike Skeen hoped to enjoy a repeat win in TA2 but saw his thunder stolen by Rafa Matos, even after breaking the existing track record during qualifying.
Matos passed local favorite Thomas Merrill on the 10th lap, taking the lead and earning the ChillOut Move of the Race. He continued to fend off several challenges, including engine issues in the final laps which sent him crossing the finish line in a cloud of smoke. 2020 champ Skeen finished second, while 2019 champ Merrill took third.
The national Trans Am Series hits Connecticut’s Berkshire Hills next for Lime Rock Park’s traditional Memorial Day weekend.
Lucas Oil NHRA Southern Nationals
The 2021 NHRA Southern Nationals hit the historic Atlanta Dragway in Commerce, Georgia this past weekend. The event marks the final ever NHRA event hosted at the legendary track, which is in the process of being sold.
The final Lucas Oil NHRA Southern Nationals winner’s circle includes:
Antron Brown Top Fuel
Bob Tasca III Funny Car
Greg Anderson Pro Stock
Scotty Pollacheck Pro Stock Motorcycle
For a run-down of race drama and a full list of winners, click here.
Did you know…?
The NMRA added an all-female category to its upcoming Ohio event, June 10-13. The All-Female True Street class follows the same format as the QA1 True Street category with its 30-mile drive and three consecutive runs down the quarter-mile. Read more here.
Vehicle Trade-In Values Reach All-Time Record High
It’s official: nothing makes sense anymore. With the used car market positively on fire, vehicle trade-in values have climbed to all-time high – meaning pre-owned rides are actually appreciating on dealer’s lots. (That’s if they can even keep them in stock.)
According to JD Power, year-to-date wholesale used-vehicle prices set a record this April, jumping 32%. (The previous all-time high was 17%.) Meanwhile, used retail prices climbed at their typically slower rate – around 9%.
“The new-vehicle shortage is a key factor, but it joins others,” explains Automotive News. “Government stimulus, tax returns, and extra savings by Americans who did less discretionary spending during the pandemic have spurred demand. Overall economic recovery in the U.S. and the resumption of more public activities also are contributing, market experts said.”
The takeaway? It is most certainly a seller’s market.
JD Power reports average trade-in values are up $5,502, an increase of $3,087 – or 128% – from a year ago. CarGurus’ tracking tools place the overall average used car price just shy of $24,000, which is about 14% higher than this time last year.
“That’s more than 10 times the 2020 rate of inflation,” points out Car and Driver. “Every vehicle segment has seen gains, the smallest bump being about 5% for hatchbacks and wagons. Pickup values rose a whopping 27%, and vans—that’s right, vans—are up more than 20%.
Basically, if you’re sitting on a trade-in or used ride, now’s the time to let it go. It’s likely you’ll get a really good return on your investment.
Gas Prices Creeping Up Again
We covered some of the reasons behind rising gas prices in a previous Auto Industry News, but as those totals are beginning to creep up again, we figured it was time for a quick check up.
According to GasBuddy.com, the national average price of gasoline inched up for the second week in a row, posting a 0.7 cent per gallon rise from last week to reach $2.89 per gallon as of May 3. That price is 1.8 cents higher than a month ago and $1.13 per gallon higher than a year ago.
So, what gives? Well, like so many other things, COVID is a key factor. While the U.S. production of crude oil stays relatively consistent over these past few months, other oil-producers are struggling. India has just seen its fifth straight day of record COVID cases and Japan entered its third lockdown, “leaving energy markets concerned over the uptick in cases in two major oil consuming nations,” explains The Detroit Bureau.
The recent switch to EPA-mandated summer gasoline also added proverbial fuel to the fire, as has annual refinery maintenance. (Many U.S. refineries go offline in March/April, raising the cost of production and transportation.)
However, “reports suggested last week President Joe Biden was considering easing the sanctions on Iran to get them back to the table,” writes Detroit Bureau, “which may again allow Iran’s crude oil access to global markets, leading to additional supply.”
Stay tuned, as we’ll be watching this closely.
Lyft Follows Uber, Exits Autonomous Game
Taking a page from fellow ride-hailing giant Uber’s playbook, Lyft has decided to bow out of the self-driving game. The company announced it will sell its autonomous vehicle unit to Toyota subsidiary Woven Planet for a whopping $550 million.
So, what do these companies have to gain from getting out of the self-driving business? Well, according to the New York Times: a whole lotta money.
In addition to the purchase cost, Lyft stands to cut roughly $100 million in annual expenses by unloading its Level 5 initiative. The savings should help the company edge closer to profitability after the pandemic sliced into its revenue. Considering Lyft lost $1.8 billion last year, that’s probably a step in the right direction.
Toyota, on the other hand, seems not only jazzed about the acquisition, but also pretty well-prepared. The automaker already offers Level 2 automation with advanced driver assistance technology and has a variety of other self-driving projects in the pipeline through several different partnerships.
With demand for ride-hailing services down and the pool of available (and willing) drivers way down, we’d say this is a smart business move for both Lyft and Uber. Better for them to stick to what they do best: creepily collecting your data under the guise of low-cost taxi rides.
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 our update towing guide on hitch selection, featuring keen insight from Gahre Scudder, Product Manager for Husky Towing.
