Auto Industry News: Vehicle Sales Update, Bye-Bye Bolt, New California Bans, and World’s Most Expensive Vanity Plate Is Pretty Underwhelming

New month means new vehicle data, and crunching April’s numbers reveals a mixed bag of news. Inventory is rebounding (slowly), but prices remain stubbornly high – on both the new and used markets. The Engine Block sifts through the analysts’ reports so you don’t have to, and reveals the key takeaways if you’re looking to buy, sell or hold.

Meanwhile, GM kicks the affordable Chevy Bolt to the curb; the California Air Resources Board slaps new regulations on fleet trucks and locomotive engines; and someone with entirely too much money spent a record-breaking $15 million on … a license plate.

Times are weird. Find out how much by digging into this week’s Auto Industry News.

Market Update

The market seems to have a case of spring fever – or so the automotive analysts suggest. According to forecasts from J.D. Power-LMC Automotive, new-vehicle sales have weathered rising prices and interest rates quite well. Projections place total new-vehicle sales for April 2023 at 1,316,500 units, a 9.8% increase from April 2022.

As has been the case for several months now, the sales bump is largely thanks to commercial and rental fleet customers. In fact, fleet sales are projected to increase an impressive 33% compared to April 2022.

That’s not to say regular customers aren’t opening their wallets, too. Sustained demand coupled with record-high transaction prices (now clocked at $46,044) actually has consumers on track to spend nearly $47.5 billion on new vehicles this month! That’s the second highest for the month of April and 2.9% higher than this time last year.

Whether you’re buying, selling, just browsing or desperately holding onto your current ride, here’s what you should know about where the market currently stands.

Key Takeaways

• Overall inventory supply has improved, translating to less vehicles being sold above MSRP and a slight uptick in manufacturer discounts/incentives.

• More consumers are back to buying vehicles that are currently on the lot, but it’s clear that pre-selling inventory is going to be a sticky trend with retailers (at least for the time being).

• Sky-high interest rates (6.8% average) are inflating monthly loan payments and all but killing car leases. Market analysts place the average monthly finance payment at about $729 – a 7.1% increase from 2022.

• Used-vehicle prices continue their roller coaster ride. While down from pandemic highs, tight supply is keeping overall prices up. Economists can’t seem to agree what the coming months will look like, but with more people holding onto their current vehicles and virtually no one leasing, we’d say it’s safe to assume elevated pricing is going to stick around.

• The heart wants what the heart wants. Trucks and SUVs are on pace to account for 78% of new-vehicle retail sales in April.

In Case You Missed It…

Thanks to some loose lug nuts, Ford is issuing an embarrassing recall. About 1,400 MY2023 Ford Bronco and Ranger models must see a technician ASAP to ensure their wheels don’t fall off. The alarming issue stems from an assembly process error, which sent vehicles out of the plant with improperly torqued driver-side lug nuts.

EV Outlook

Despite strong government support and concentrated automaker effort, electric vehicles are struggling to capture consumer affection. While overall market share is up, increasing from 2.5% in March 2020 to 7.3% in March 2023, new-vehicle shoppers still aren’t taking to the idea of parking an EV in the garage.

According to a recent J.D. Power survey, the percentage of shoppers who said they are “very unlikely” to consider an electric vehicle for their next purchase jumped to 21% in March – the highest percentage the company has seen yet. Respondents said their reluctance primarily hinges on a lack of charging stations, but high prices are contributing as well.

However, the technology seems to be making believers out of current owners. J.D. Power found that 71% of shoppers who already owned an EV were “very likely” to purchase one again.

GM Says Bye-Bye Bolt

Interestingly, just as shoppers express concern over EV prices, GM announces it is killing off the Chevy Bolt – currently the cheapest available option for Americans eyeing up an electric ride. According to the automaker, production on Chevy’s first long-range battery electric vehicle will stop at the end of the year.

Launched in 2016, the Chevy Bolt is a subcompact hatchback with strong value prop. The styling and power may leave something to be desired, but the low starting price, surprisingly spacious interior, and EPA-estimated 259 miles of range have made it an attractive option for budget shoppers keen on EVs. Attractive enough to spawn a larger, mini-SUV version called the Bolt EUV in 2022.

Despite both models performing well – and reporting record sales this year thanks to some very incentivizing price cuts – GM says the vehicles were always meant to be transitional. Nixing both Bolts from the lineup makes room for a new generation of EVs, riding on a fresh platform and wearing shiny new Ultium batteries.

GM’s future EV plans include a production target of 1 million units by 2025. Included in that count will be the new Hummer EV and Cadillac Lyriq, as well as electric versions of the Chevy Silverado, Blazer, and Equinox models.

As for the Bolt and Bolt EUV, GM plans to send them out with a bang, manufacturing about 70,000 of the units this year.

California Targets ICE Trucks & Trains

Believing that fair pricing and accessible charging infrastructure will catch up eventually, California is implementing more ICE bans. This time, the state takes aim at fleet trucks and locomotive engines.

No More New ICE Trucks After 2036

The truck limitations come as a result of the Advanced Clean Fleets (ACF) measure. Approved by the California Air Resources Board (CARB) last week, the first-of-its-kind rule is part of a larger strategy working to make all trucks traveling across the state zero-emissions by 2045.

To achieve this goal, the ACF will prohibit manufacturers from selling medium- and heavy-duty trucks with internal combustion engines after 2036. The rule does grant certain exceptions, which CARB says will help create a “flexible path” to transition.

For example, as long as an operator registers their ICE-powered drayage truck in CARB’s online system before the end of the year, they can continue operating the “legacy” vehicle throughout its useful life — or until 2035, whichever comes first. However, once the calendar rolls over to 2024, the system will only accept new registrations from zero-emissions trucks.

The regulations are stricter for those in ‘last-mile’ delivery and federal fleets. Their transitions must start next year, with state and local agencies required to have a 50% zero-emissions fleet beginning in 2024 and one that is 100% clean by 2027.

While trucks represent only 6% of the vehicles on California’s roads, CARB says they are one of the greatest contributors to air pollution, accounting for over 35% of the state’s transportation-generated nitrogen oxide emissions and 25% of the state’s on-road greenhouse gas emissions.

New Train Standards

CARB is nothing if not ambitious. Alongside its new truck rule, the agency also passed the In-Use Locomotive Regulation, the nation’s first-ever trains emissions rule.

If approved by the Biden administration, the standards will:

• ban locomotive engines more than 23 years old by 2030
• ban locomotives in the state from idling longer than 30 minutes if they are equipped with an automatic shutoff
• require operators to pay into a spending account based on the emissions they create in California. Companies can then use these funds to upgrade to cleaner locomotive technologies.

According to CARB, current operational emissions from just one train are worse than those of 400 heavy-duty trucks. The agency projects the new regulation will contribute the largest reduction in nitrogen oxide emissions, delivering an estimated $32 billion in health savings.

The railroad industry argues that current technology and infrastructure simply do not support such ambitious goals, and that the increased cost of compliance will lead to higher prices of goods transported by rail.

Taking “Vanity” Plate to New Levels

Here’s a new one… Someone paid $15 million for a license plate that features just two characters: “P7.”

The record-breaking sale took place last week at an auction in Dubai. Officials have not revealed the lucky(?) winner’s identity, but one presumes this person can relish in the knowledge they most likely now own the world’s most overpriced piece of aluminum. The previous holder of this title was Saeed Abdul Ghaffar Khouri, a Emirati businessman who spent an equally wild $14.2 million at a 2008 auction organized by the same company. Although, his plate at least had the rarity of being number “1.”

Why spend this kind of money on a vanity plate, you may ask. That’s a good question, and while part of the answer is ‘this was a charity auction,’ the other part is much less satisfying. “Dubai is a city of gold,” businessman Balvinder Singh Sahni told Bloomberg. “It’s a city of big people, secure people, nice people. So everybody wants to show their status.” (He should know. He spent $9 million on his own license plate back in 2016.)

All told, the pricy plate helped rake in $19.3 million for the 1 Billion Meals Endowment. The charity, founded by Dubai’s leader Sheikh Mohammed bin Rashid Al Maktoum, fights food insecurity around the world.

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 Wednesday for a heads up on the red flags you need to watch for when buying a used vehicle. Then, circle back on Friday for a close look at the ‘death’ of the muscle car – and who exactly might be responsible.