The Intersection 4-9-23

The news has been relentless lately telling us about wondrous new plans and technologies that will take the auto industry into a remarkable new future. This week, we zoom a little closer into that picture to show you some specific examples of technological change in the making.

Our Emerging Technologies special section gives you a glimpse of more than 20 new devices, trends, factory practices and bold ideas to lift vehicles to the next evolutionary stage. Turns out, automotive is currently leading the economy in the growth of patent applications.

Will all those new technologies succeed as envisioned? Who knows. That’s the sort of question investors and entrepreneurs wager their fortunes on.

But “success” is a funny word in the car business. Mostly because the industry is constantly evolving, changing strategies and changing hands, and a brilliant solution that succeeds one year could be rendered obsolete the next.

Consider MG.

The iconic century-old British sports car brand gave up on the American market 43 years ago, reporter Richard Truett reminds us, and the name nearly died. But MG’s recent story has been quite a surprise. New investment from China over the past 20 years has turned it into a hot brand. Last year, sales of MG-badged cars reached 660,000 globally. If that’s not a success, it’ll do till a real one comes along.

And as you mull over the changing nature of success and failure, be sure to check out this week’s Final Assembly. We’ve provided the names there of the top 10 of the 73 automotive billionaires who made this year’s Forbes ranking of the world’s wealthiest people. (And yes, surprise spoiler: Elon Musk is at the top of the list.)

It’s interesting to note, as you read that list, how many of those 73 billionaires struggled to avoid failing at what they’re doing — but also how many of them once proposed some unfamiliar new idea that eventually took the industry by storm.

— Lindsay Chappell      

In Monday’s Automotive News:

Ram aims to best competitors with full-size electric pickup: The 2025 1500 REV, Ram’s first battery-electric pickup, made its debut at the New York International Auto Show last week. Ram is the last of the Detroit 3 to release a full-size electric pickup, following Ford’s F-150 Lightning plus GM’s Chevy Silverado EV coming this fall and its GMC Sierra EV coming in 2024 — but the brand has an ace up its sleeve. While Ram says the REV will offer a standard 168-kilowatt-hour battery pack with a range target of up to 350 miles, an optional 229-kWh battery pack should bring range closer to a segment-best 500 miles. The REV made a brief appearance in Ram’s Super Bowl ad in February, goosing reservations and selling out in three days. Automotive News looks at why there’s so much excitement about this pickup. Catch up on our coverage of last week’s New York auto show.

Credit unions gobble up auto loan market share in 2022: Credit unions snapped up the lion’s share of the auto loan market in the fourth quarter of 2022, but Credit Union Leasing of America has some bragging rights as well. With $2.7 billion in leases in 2022, CULA — the company that connects credit unions and dealers interested in leasing inventory using the residual values it calculates — broke its previous record of $2 billion, set in 2021. Automotive News looks at why leasing has become such a powerful short-term option for credit union members.

Weekend headline

Dealerships’ charging cost savings may be found in solar panels: Some auto dealerships are installing solar panels to offset expensive and energy-intensive automaker requirements to build EV chargers on their lots. Dealerships in sunny locations with large roofs and parking lots may be well-equipped to install solar panels and reduce their energy costs.

MG’s 100th — Iconic brand reborn after near death: MG, once known for British sports cars, has had its triumphs and struggles — even flirting with death. Now under Chinese ownership, the brand enters its second century poised to become a global player.

Auto industry outlook is both under pressure and historically great: The return to more regular economic activity after supply chain snarls and the federal stimulus of the pandemic is making this year’s historically excellent prospects look almost disappointing, speakers at the New York Auto Forum said last week.

GM rebound continues; Ford gains; Toyota, Stellantis slip: U.S. sales at GM and Ford rose in the first quarter and Toyota deliveries declined for a third straight month as inventories steadily recover from a microchip shortage and discounts that, while still low, rise across much of the industry.

GM says about 5,000 salaried employees took buyouts, layoffs avoided: General Motors says about 5,000 of its salaried employees have elected to leave the company through voluntary buyouts. The buyouts are part of an effort to cut $2 billion in costs over the next two years. 

April 13, 2020: A tornado rips apart a BorgWarner transfer case plant in Seneca, S.C.