Auto News: Overlanding Remains a Top Draw, Rivian Issues Big Recall, & Carvana Continues to Flout Rules

They say everything comes in cycles, and this week sure feels like a feedback loop. Online used car retailer Carvana finds itself back in the news, facing the same allegations of shady behavior that it stared down last time it snagged headlines. The company’s license was just suspended in Michigan, marking the third U.S. state to now take legal action as a result of consumer complaints. Meanwhile, electric newcomer Rivian continues to take one step forward and two steps back. The automaker, which just got production back on track, issued a massive recall last week on nearly every one of its vehicles. Adding insult to injury, a Georgia judge shot down the tax break agreement Rivian was expecting for its upcoming $5 billion factory project.

The Engine Block recaps all the automotive drama for you, and also serves up some exciting news for overlanding fans – which includes a new Trail Transit van from Ford.

Trend Update: Overland Interest Still High

While there’s no real metric for measuring the growth of the overlanding movement, tracking aftermarket sales and event attendance serve as a pretty decent thermometer. And based on these two factors alone, the trending temperature is HOT.

Overland Expo East

Inarguably, the best event to monitor when trying to keep tabs on the overlanding segment is Overland Expo. Founded in 2009, the world-renowned DIY adventure series now includes four different expos held across the U.S. throughout the year.

The “East” event just wrapped up its 2022 show this month at the Oak Ridge Estate in Arrington, Virginia. (You can check out some fun highlights in the video below.)

The 3-day event drew more than 15,000 attendees from all over the world — a respectable increase from last year’s 14,000 visitors and an exponential boom from the mere 3,000 clocked at the inaugural event 8 years ago. Its sister event, Overland Expo West, is even bigger. That drew nearly 30,000 people this past May in Flagstaff, Arizona.

No Slowing Down

Many people both inside and outside of the auto industry thought the overlanding craze would fizzle out, or at least cool down by now. But the folks driving its growth – largely, well-to-do Millennials – have yet to lose interest in the movement. And all that discretionary cash is doing a bang-up job of supporting a very crowded segment weighed down by inflationary pressures.

According to SEMA, which added a complete Overland Experience feature to its annual expo in 2019, the sector has COVID to thank for its most recent growth spurt. Travel restrictions caused people to rediscover the joy of outdoor adventures, and that newfound appetite was promptly fed by “corporate work-from-home directives and government stimulus checks,” SEMA notes.

As a result, the accessorizing trend is now moving well beyond traditional overlanding to envelope all kinds of general outdoor recreation. Think: hiking, biking, kayaking, hunting, fishing and the like. Really, anything that supports an outdoor lifestyle is game.

Also game? Crossovers and smaller SUVs. Automakers are reading the room, and they’re squeezing impressive off-road-ready features into these nimble, fuel-efficient models. The vehicle segment’s sustained adoption growth is ushering a whole new batch of buyers into the adventure lifestyle as a result.

The SEMA Overland Experience is returning for the 2022 show, and the special exhibit is larger than ever. Expect “dozens of customized vehicles with fully popped-out tents, survival accessories and portable kitchen systems all displayed among exhibitors supporting the growing overlanding market,” says SEMA.

Ford Teases 2023 Transit Trail

Those overlanders drawn to the quirky comfort of van life will be happy to learn that Ford is releasing an adventure-ready version of its Transit commercial delivery hauler next month.

No details are available, and the announcement video is a true teaser. Outside of some knobby tires and auxiliary lights, it’s impossible to tell what kind of off-grid amenities the Transit Trail will have on deck. Ford simply says the new model offers “adventure-seeking capability alongside interior and exterior enhancements providing do-it-yourselfers and motorhome distributors a turnkey canvas direct from the factory.”

The 2023 Transit Trail will share manufacturing digs with other Transit models at the Ford Kansas City Assembly Plant in Missouri. No word on pricing, but base Transit vans in cargo configuration start around $42,000, with passenger models coming in closer to $48,000. We expect this trail-ready model to cost quite a bit more.

Did you know…?

Ford is scrapping its little Transit Connect for 2023. By dropping the smallest gas-powered option from the lineup, the automaker likely hopes it can steer customers toward either a more expensive full-size option or the new E-Transit electric van.

Rivian Issues Huge Recall

Last week, fledgling EV upstart Rivian announced a massive voluntary recall that affects nearly every single one of its vehicles sold – some 13,000 out of 14,000 electric trucks and SUVs. The problem stems from an improperly torqued suspension bolt that could cause the front steering assembly to separate.

No accidents were reported, and the issue was only found in seven vehicles. Rivian said it is acting “out of an abundance of caution.”

While the repair is both simple and inexpensive, requiring little more than a service tech’s conscientious once-over, the setback has incredibly poor timing.

As we reported just last week in our roundup of automakers’ Q3 sales results, Rivian was showing marked improvement lately. The automaker delivered 6,584 out of 7,363 vehicles produced in Q3, and all signs pointed to production being back on track. The company even reaffirmed its 25,000-vehicle target for the year, seeing its shares enjoy a much-needed jump by almost 9%.

When news of the recall broke, however, those shares tumbled backwards by 7.3%. A slide that no doubt delivered a sting to investors who have already watched the company lose roughly two-thirds of its value this year amid economic pressures and parts shortages.

Rivian seems to be trapped in a cycle of taking one step forward and two steps back.

Earlier this year, the company secured a history-making subsidy package with the state of Georgia to build its second U.S. factory. But before the confetti and champagne bubbles could settle, Rivian saw its big backer Ford sell off millions of shares, Q1 sales results come in way below expectations, and engineers raise the automaker’s first recall alarm.

Those setbacks proved fortuitous for Georgians in opposition to the new factory. Since the initial announcement, they have raised concerns ranging from environmental to financial. The main issue however, seemed to be around local government taking such a costly risk on an “unproven” company.

It seems the courts may agree. Early this month, Morgan County Superior Court Judge Brenda Trammell rejected the cushy tax break agreement that the state’s development authority used to recruit Rivian to the property site. Trammell said the proposal – a sprawling 2,200-acre project estimated to cost $5 billion and create 7,500 jobs in a sleepy, rural town – did not meet the legal threshold for being “sound, reasonable and feasible.”

In Case You Missed It…

Toyota finally found a resolution to its own recent major recall. Back in June, the automaker issued a callback on all bZ4X electric SUVs for a pretty embarrassing reason: the wheels could fall off. Thankfully, the issue finally has a cause – and a solution. Turns out the problem stemmed from the higher torque exerted by the vehicle’s all-electric drivetrain. Toyota says it can fix the issue by installing redesigned hub bolts with washers onto new “improved” wheels. The repairs should start rolling out in November.

Carvana Can’t Keep Itself Outta Trouble

Carvana finds itself once again facing accusations of corporate incompetence and poor customer service. The online used car retailer just had its license suspended in the state of Michigan over allegations of repeated titling and registration violations. The infractions were discovered as part of an investigation launched after multiple consumer complaints.

According to Michigan’s Department of State, Carvana continually failed to properly transfer titles and registrations for sold vehicles and incorrectly issued temporary registration permits – even after agreeing to resolve the issues as part of a probation agreement. Michigan investigators also found evidence of fraudulent behavior, noting that Carvana employees admitted to destroying documents and even signed odometer disclosure records on behalf of customers.

Carvana called the state’s actions “baseless” and “reckless,” citing “arcane and outdated regulations,” and dismissing the violations as simple technicalities. The company also called the suspension a “heavy-handed and abrupt effort” to shut down a growing business.

However, it’s worth noting that the state has been in communication with Carvana regarding its investigative findings for over a year. The two even entered a probationary agreement in May 2021, during which time Carvana admitted to multiple code violations. A probationary extension came in February 2022 due to Carvana’s violation of the first probation – to which, again, it admitted wrongdoing.

Michigan now makes the third U.S. state to take action against the online retailer.

In August 2021, North Carolina suspended Carvana’s license for 180 days, alleging title transfer issues and improper out-of-state temporary registrations. In the city of Charlotte, it appears the company’s license is under probation until next month.

Illinois joined the list in May 2022 after 95 consumer complaints regarding the same titling and registration violations. The state also brought dozens of criminal charges against Carvana’s general counsel, Paul Breaux.

In Illinois, Carvana managed to secure a temporary restraining order that will allow it to keep buying and selling vehicles while it defends the legal challenges. The company seems to be trying the same tactic in Michigan, as it filed a complaint in the Michigan Court of Claims late last week. Carvana claims it was not provided with a hearing and was not given adequate opportunity to respond to the state’s allegations.

Angela Benander, spokesperson for Michigan Secretary of State Jocelyn Benson, said state officials met with Carvana on multiple occasions to explain Michigan law and suggest ways for it to comply, but “Carvana continued selling vehicles without titles to scores of Michigan families, putting the residents at risk of legal violations, fines, and other penalties.”

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 a helpful tech corner on how to determine correct ring and pinion gear ratio.