Category: Auto News Today

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Dow Jones Futures Loom As Market Rally Awaits Omicron Covid Variant News; What To Do Now

Dow Jones futures will open Sunday evening, along with S&P 500 futures and Nasdaq futures, with all eyes on the newly discovered omicron Covid variant following Friday’s sell-off.




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The stock market rally was hit from all directions last week, with the major indexes tumbling below key levels Friday on the new omicron Covid variant, with crude oil prices and Treasury yields plunging. Coronavirus vaccine makers such as Moderna (MRNA), BioNTech (BNTX) and Pfizer (PFE) were big winners.

Is this the start of a significant market slide, the continuation of recent whipsaw action or will stocks quickly rebound? The current uncertainty makes it difficult to navigate the stock market rally. Investors should be playing more defense than offense until conditions clearly improve. More clarity on the new omicron variant is needed.

Li Auto earnings are due before Monday’s open. Later this coming week, Li Auto (LI) and Chinese EV startups Nio (NIO) and Xpeng (XPEV) are likely to release November delivery figures. China EV giant BYD Co. (BYDDF) may come slightly later, with Tesla (TSLA) China sales figures eventually following.

Tesla stock is on IBD Leaderboard and the IBD 50. Pfizer stock was Friday’s IBD Stock Of The Day.

The video embedded in this article analyzed a pivotal market week and discussed PFE stock, Ovintiv (OVV) and Li Auto.

Dow Jones Futures Today

Dow Jones futures will open at 6 p.m. ET, along with S&P 500 futures and Nasdaq 100 futures.

Dow futures could be volatile Sunday night, with investors making best on the market rally’s direction without a clear picture of just how serious, or not, the omicron variant is.

Bitcoin rose modestly, trading above $56,500 and at weekend highs, suggesting a vague “risk on” sentiment after Friday’s sharp sell-off in cryptocurrencies.

After U.S. crude oil prices plunged 13{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} on Friday, OPEC+ is delaying some technical meetings set for Monday-Tuesday to Wednesday-Thursday so the market can digest the impact of the new Covid variant.

Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session.

Join IBD experts as they analyze actionable stocks in the stock market rally on IBD Live

Omicron Coronavirus: Covid Variant Of Concern

A new coronavirus variant with a large number of mutations, first detected in South Africa, is raising concerns. It’s unclear if the B.1.1529 Covid variant, dubbed the omicron variant on Friday, is more deadly or infectious than prior strains, or whether vaccinations or prior Covid infection provide substantial protection.

The World Health Organization noted that the omicron variant appears to have a higher risk of reinfection for people who have already had Covid-19. The WHO declared it a “variant of concern,” the first such designation since the delta variant a year ago.

However, a coronavirus adviser to the South Africa government as well as the Pretoria doctor who sounded the alarm about the Omicron variant said that cases generally seem to be “mild.”

There are reasons to believe that anti-viral pills, such as those made by Pfizer and Merck (MRK), would retain effectiveness vs. the latest Covid strain.

The U.S., U.K., European Union, Australia, Israel and Singapore have suspended flights or entry from southern Africa.

Dutch officials on Sunday reported 13 omicron Covid cases among travelers from South Africa to the Netherlands.

The U.K., Belgium, Australia, Italy, Hong Kong and Israel are among countries that have identified a handful of omicron Covid cases.

Coronavirus Vaccine Stocks

Pfizer partner BioNTech said it will take two weeks to see how effective its vaccine is vs. the omicron Covid variant. Moderna said it could have a Covid vaccine designed for the omicron variant by early 2022. MRNA technology speeds up vaccine development, though FDA approval could take several months.

On Nov. 19, the FDA approved Moderna or Pfizer booster shots for all adults. That came soon after the FDA approved the Pfizer/BioNTech vaccine for children aged 5-11, after already approving the Covid vaccine for adolescents aged 12-15.

Pfizer and partner BioNTech, along with rival mRNA coronavirus vaccine maker Moderna, jumped Friday on the omicron Covid variant, also called Nu Covid. Pfizer also is benefitting from Merck reporting even-lower efficacy from its antiviral Covid pill. A Pfizer Covid oral drug is much more effective.

PFE stock jumped 6.1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} on Friday to 54, gapping above a 51.96 buy point, according to MarketSmith analysis. However, Pfizer stock has surged for six straight weeks off the bottom of its cup base. A pullback wouldn’t be a surprise.

MRNA stock gapped above its 50-day line, breaking a trend line with a 21{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} gain. BNTX stock, which cleared its 50-day line earlier in the week, soared 14{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. Both Moderna stock and BioNTech could be deemed early entries. But investors might want to see more strength from Moderna and a post-gap up consolidation from BNTX stock.

Meanwhile, other coronavirus medical plays such as Quest Diagnostics (DGX) and PerkinElmer (PKI) showed positive action as well.

Covid Cases Rising

Coronavirus cases had already been ramping up worldwide for the past several weeks, notably in Europe. Austria began a lockdown in the past week.

Coronavirus cases worldwide reached 261.72 million. Covid-19 deaths topped 5.21 million.

Coronavirus cases in the U.S. have hit 49.09 million, with deaths above 799,000. U.S. cases, after picking up for a couple of weeks, appeared to be leveling off shortly before Thanksgiving. Will the holiday travel spur another upsurge in cases next week? Coronavirus deaths in the U.S. have continued to fall.

These Sectors Lead Sell-Off As New Covid Variant Emerges

Stock Market Rally

The stock market rally had a rough holiday-shortened week, with broad-based losses.

The Dow Jones Industrial Average gave up 2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} in last week’s stock market trading, all driven by Friday’s 2.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} decline. The S&P 500 index shed 2.2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. The Nasdaq composite skidded 3.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. The small-cap Russell 2000 tumbled 4.6{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}.

Crude oil futures plunged 13{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} on Friday. The 10-year Treasury yield lost 4 basis points to 1.49{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} for the week. But the benchmark yield dived 15 basis points Friday after nearly hitting a six-month high Wednesday intraday.

Among the best ETFs, the Innovator IBD 50 ETF (FFTY) plunged 5.9{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, while the Innovator IBD Breakout Opportunities ETF (BOUT) gave up 3.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. The iShares Expanded Tech-Software Sector ETF (IGV) slumped 5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. The VanEck Vectors Semiconductor ETF (SMH) retreated 4.1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}.

Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) dived 5.3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} and ARK Genomics ETF (ARKG) 5.7{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. Tesla stock remains the No. 1 holding across ARK Invest’s ETFs.

SPDR S&P Metals & Mining ETF (XME) fell 3.2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} and Global X U.S. Infrastructure Development ETF (PAVE) declined 2.1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. U.S. Global Jets ETF (JETS) tumbled 7{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. SPDR S&P Homebuilders ETF (XHB) slid 2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. The Energy Select SPDR ETF (XLE) rose 1.3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, but tumbled 4.3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} on Friday with many shale plays faring far worse. The Financial Select SPDR ETF (XLF) lost 1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, skidding 3.7{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} on Friday.

Five Best Chinese Stocks To Watch Now

Li Auto Stock

Li Auto is expected to narrow its per-share loss with Q3 revenue tripling. Last week Li Auto stock rose 5.9{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} to 32.40. That’s near possible entries, including an official 34.93 handle buy point.

Xpeng stock is holding above a 48.08 buy point and 50.50 alternative entry after surging on earnings in the past week. Tesla and BYD stock could be working on new consolidations, both closing Friday near their 21-day lines. Nio stock has fallen back below its 200-day line.

Tesla CEO Elon Musk, in a “leaked” email to employees, suggested the EV giant may push some Q4 deliveries from the typical end-of-quarter crush into early 2022, in a bid to lower shipping costs. “Leaked” Musk emails often spur analysts to lower quarterly delivery targets. The upcoming Austin and Berlin plants should eventually ease some of the Tesla delivery crush in the U.S., Europe and China.

Tesla Berlin will begin production in December, Automobilwoche reported Sunday. Regulators are expected to give final approval to the plant with days. Production is seen picking up in January, but it at a relatively slow ramp in early 2022.

Market Rally Analysis

In the past week, the stock market rally started a major sell-off in highly valued growth stocks, especially software, while energy stocks and banks rebounded. The new Covid variant sent stocks sharply lower on Friday, especially oil and financials, as crude prices and Treasury yields tumbled. Travel stocks also were hard hit, while retailers extended a recent retreat. Coronavirus plays bounced, while software names held up relatively well.

The Nasdaq composite and S&P 500 gapped below their 21-day lines after both found support at that key level earlier in the week. The Dow Jones, which was up modestly through Wednesday, gapped below its 50-day line on Friday.

The Russell 2000 tumbled below its 50-day and 200-day moving averages. The small-cap index is a decent proxy for market breadth, which has weakened considerably. Losers trounced winners 4-to-1 on the Nasdaq Friday, and by 5-to-1 on the NYSE. The advance/decline lines have deteriorated in the past few weeks.

The CBOE Volatility Index, or VIX, spiked 54{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} to 28.62, hitting a 10-month high. Extreme moves in the so-called market fear gauge could raise the odds of at least a short-term market bottom. But it doesn’t have to happen right away and it doesn’t have to last.

There’s a lot of uncertainty right now regarding the market rally and which sectors will lead and lag. Market action is likely to be headline driven. How dangerous is the omicron Covid variant?. That will inform governments’ decisions on travel bans and restrictions and whether or not people adjust their behavior once again. A major outbreak could trigger new government and business shutdowns, roiling supply chains once again and sending commodity prices on a longer slide.

Perhaps all these fears are overdone. Goldman Sachs, in a Friday night note, said “this mutation is unlikely to be more malicious and that the existing vaccines will most likely continue to be effective in preventing hospitalizations and deaths.” Goldman added, “we do not think that the new variant is sufficient reason to make major portfolio changes.”

Time The Market With IBD’s ETF Market Strategy

What To Do Now

The whipsaw, downside action in the major indexes, various sectors and leading stocks is not conducive to new buys. Sure, if the overall stock market rally or specific sectors rebound, buying now will likely turn out well. But with so much uncertainty regarding the new omicron Covid variant, inflation, supply chains and more, the odds are not especially favorable.

It’s quite possible the oil, bank or travel stocks will try to rebound early next week, much as software stocks did on Wednesday. But that doesn’t mean the bounce will continue.

Investors should review their holdings and ditch losers. If you got caught out in Friday’s gap-down losses and didn’t act, don’t continue to freeze.

Take more of a defensive posture with all of your holdings and portfolio. Don’t necessarily be in a rush to sell everything, unless all your stocks are triggering losses.

When market conditions do shore up, whether it’s next week or next year, you want to be ready financially and mentally to take advantage.

Read The Big Picture every day to stay in sync with the market direction and leading stocks and sectors.

Please follow Ed Carson on Twitter at @IBD_ECarson for stock market updates and more.

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Toyota takes on Democrats’ union-friendly EV tax credit with major U.S. ad campaign

Toyota’s advertisement comes as opposition to the proposed EV tax credit multiplies, with other international automakers, Republican governors from auto states, and the countries of Canada and Mexico criticizing the proposal.

A group of 25 ambassadors to Washington also questioned the proposal in a letter sent Friday to House Speaker Nancy Pelosi, Minority Leader Kevin McCarthy, Senate Majority Leader Chuck Schumer and Minority Leader Mitch McConnell.

The ambassadors, who represent Germany, Japan, France, South Korea, Italy, the European Union and other countries, said the legislation “if implemented, would violate international trade rules, disadvantage hard-working Americans employed by these automakers and undermine the efforts of these automakers to expand the U.S. EV consumer market to achieve the administration’s climate goals.”

Autos Drive America, a group that represents the U.S. operations of international automakers, including Toyota, said the ambassadors’ letter “should make the administration and Congress realize that this is just bad policy.”

“It discriminates against American workers, undermines global climate change goals and threatens our relationships with our trading partners,” Jennifer Safavian, CEO of Autos Drive America, said in a statement. “Tax incentives should be fair and equal for all EVs.”

The White House last week unveiled a slimmed-down $1.75 trillion tax and spending framework that keeps in place the House proposal, including the union-built provision.

The framework’s EV tax credit “will lower the cost of an electric vehicle that is made in America with American materials and union labor by $12,500 for a middle-class family,” according to a fact sheet released by the White House.

The American International Automobile Dealers Association, which represents more than 9,000 international-nameplate dealers in the U.S., criticized the framework and called the tax credit “discriminatory” in a statement last week.

“The inclusion of this $4,500 UAW-only tax credit is an insult to the 673,000 Americans who work in international nameplate manufacturing plants and dealerships,” AIADA CEO Cody Lusk said. “Far from ‘Building Back Better,’ this provision makes it more difficult for Americans to buy green vehicles, as it can only be applied to a handful of the more than 60 electric vehicles available for sale today.”

AIADA said its dealer members are asking Congress and Biden “to stop playing politics with car sales and start working for all Americans — not just those who pay union dues.”

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CoPilot: Lessees aware of vehicle market but still expect to upgrade

Despite dealerships’ tight inventory and automakers being forced to temporarily remove features from new models because of chip shortages, lessees feel their next vehicle will be newer and more advanced than their existing models, according to a survey. The consumers also expected to pay the same amount or less than their current bill.

The Oct. 15 Pollfish study of 1,000 leaseholders found 82 percent of lessees were concerned supply issues could affect the availability of their next model, according to CoPilot, the car-shopping assistance company that commissioned the study.

But 66 percent felt their next model would be an upgrade in terms of features, and 92 percent thought their next lease or purchase would be newer, CoPilot’s survey found. Fifty-six percent of customers thought it would cost them the same amount or less.

Even customers in the crunch time of three months or less left on their leases are confident they’ll move to newer and better vehicles for the same or reduced cost. Ninety percent felt they’d get a newer model, and 57 percent expected to get something with better features. Sixty-six percent thought this new purchase or lease would be the same or less than what they were paying now.

“As millions of consumers come off-lease this year, they should be prepared for the fact that the car they want may not be available,” CoPilot CEO and co-founder Pat Ryan said in a statement this month. “Due to the global chip shortage, a number of major automakers have announced that they need to suspend tech features like driver assistance and monitoring systems and blind spot monitoring. As a result, consumers looking to lease their next car may be facing the reality that their next vehicle may not have all the bells and whistles they’re hoping for — or even safety add-ons that they’ve come to view as standard.”

Customers are beginning to understand the reality of the industry, though. Ryan told Automotive News that four months ago, customers would have been completely clueless. Now, they’re aware of the shortages, but “they’re not sure it’s gonna impact them.” It’s not until a consumer enters the market that they recognize the challenge, he said.

Vehicles are still being made available for lease, though they’re not being subvented to the levels in the past, Ryan said. Customers might also need to settle for leasing a vehicle that doesn’t precisely meet their desired configuration, or they might sign up for a lease that would begin when a vehicle becomes available months later.

CoPilot has been advising lessees who don’t need a vehicle immediately to “buy out and keep an eye out,” according to Ryan: Purchase one’s current lease at the residual price and wait for better market conditions.

He said automakers also are less willing than in the past to extend leases for customers whose desired vehicle isn’t yet available.

“That’s kind of come and gone by now,” Ryan said.

As for the customers shopping for leases today, Ryan said they should still receive comparable residuals. Even though a 1- to 3-year old car now sells for 92 percent of sticker price instead of the usual 70 percent, lessors aren’t making dramatic changes to lessee buyout prices in response to current market conditions, he said.

“Nobody believes that’ll be true in three years,” he said.

Ryan also said the difficult lease results recently reported by some mainstream automakers might not indicate what’s happening among luxury brands, which rely more heavily on leasing for their business model. A mass-market volume brand will lease to help boost the car sales they’d prefer to focus on, he said. A premium brand treats leasing as a goal unto itself, he said.

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EV tax credit proposal shows international car dealers have few friends in Washington

There is a popular and apocryphal quote, attributed to Harry S. Truman, which advises that, “If you want a friend in Washington, buy a dog.”

International dealers have never felt the truth in that statement as powerfully as we do now. Our friends in Washington are few and far between these days as we seek protection against an un-American provision being shoehorned into the Build Back Better Act to benefit the UAW. The provision would offer consumers a $4,500 tax credit for buying an electric vehicle, but only if that vehicle was assembled in a union-represented plant.

The language is transparently a political payment from politicians to the unions that fund their campaigns. After all, a union-only tax credit doesn’t promote EV sales. It drastically limits EV choices for consumers and will slow the conversion to electric vehicles. It also doesn’t protect American workers. Today, 673,000 Americans are employed by nonunionized international nameplate manufacturers and dealers (not including Tesla and others). And it certainly doesn’t benefit taxpayers, whose money will go to subsidize a narrow sector of the American auto industry, concentrated in just a few Midwest states.

You would think a concept this unscrupulous would have been scratched by now. You would think that every senator and representative who has an international brand plant in their state or district would be shouting on the rooftops against this provision. And you’d be wrong.

Only a handful of brave lawmakers have stood up against the union-only tax credit. Recently included in that group is West Virginia Sen. Joe Manchin, a Democrat, as well as my representative, Andy Barr, R-Ky. If you also have legislator who’s taken a strong negative position on this provision — thank them! And congratulations on having a true friend in Washington.

If you don’t know where your representative and senators stand, now is a great time to contact them directly and ask what they’re doing to protect all American workers and the environment. Visit aiada.org/ev to send a letter, or a quick video, directly to your legislators. Friends or not, they answer to us, and they need to be prepared to defend their position on this damaging and crooked proposal.

In the meantime, feel free to get a dog. Or simply rest assured that no matter what happens in the next few months, you will always have one steadfast friend in Washington: the American International Automobile Dealers Association. We will never waver, obfuscate or hesitate when it comes to protecting your interests on Capitol Hill. We can’t be bought off by the UAW, and we’re not going to stay silent to protect our political influence. For more than 50 years, we’ve had one mission — to protect international nameplate dealers. We’re not afraid of any fight, and we won’t be sitting this one out.

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Nutson’s Weekly Auto News Wrap-up: November 21, 2021;


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AUTO CENTRAL CHICAGO – November 21, 2021: Every Sunday Larry Nutson, The Chicago Car Guy and Executive Producer, with able assistance from senior editor Thom Cannell from The Auto Channel Michigan Bureau, compile The Auto Channel’s
“take” on this past week’s automotive news, condensed into easy to digest news Nuggets.

LEARN MORE: Full versions of today’s news nuggets along with almost a million pages of the past 25 year’s automotive content, news, articles, reviews and archived relevant stories residing in
The Auto Channel Automotive News Library can be found by just copying a headline and then inserting into any Site Search Box.

Nutson’s Automotive News Wrap-up – Week Ending November 20, 2021; Below are the past week’s important, relevant, semi-secret, or snappy automotive news, opinions and insider back stories presented as
expertly crafted easy-to-digest news nuggets.

* President Biden signed into law the $1.2 trillion infrastructure bill. IHS Markit expects the U.S. infrastructure bill to supplement only 66 percent of required U.S. EV charger growth through 2026. Overall, only 63 percent of U.S. households have access to a garage and that figure is less in urban areas where more than 50 percent of EV sales occur. If EVs remain impractical for apartment, condo, and historic home dwellers, we cannot adequately reach the administration’s stated EV goals.

* GM ZERO: President Joe Biden got a tour of the retooled factory where GM will build all-electric vehicles. GM is opening the doors of Factory ZERO, the renovated aging Detroit-Hamtramck assembly plant. Biden’s visit comes on the heels of his signing into law a $1.2-trillion infrastructure bill he helped write.

* CALIFORNIA TAXPAYERS BUY EV CHARGERS: Meanwhile, California will spend $1.4 billion over the next three years to build up EV charging and hydrogen refueling infrastructure.

* EV’s BECOMING MORE APPEALING TO YOUNGER DRIVERS:A recent Cox Automotive study says sales of battery-powered electric vehicles (EVs) in the United States are on track to set an all-time record in 2021, with sales up more than 88{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} through the end of September. Despite the rapid growth, EVs will account for only 3{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} of the new-vehicle market this year. Vehicle range and price remain the top purchase barriers. Younger Millennial and Gen Z buyers are becoming more open to the idea of an electric vehicle future. 57{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} of consumers point to a lack of charging stations in their area as a top barrier.

* APPLE CAR/TAXI ANNOUNCED:Bloomberg reports Apple Inc. is pushing to accelerate development of its electric car and is refocusing the project around full self-driving capabilities, according to people familiar with the matter, aiming to solve a technical challenge that has bedeviled the auto industry. In trying to master self-driving cars, Apple is chasing a holy grail within the industry. Tech and auto giants have spent years on autonomous vehicles, but the capabilities have remained elusive. Apple is internally targeting a launch of its self-driving car in four years, faster than the five- to seven-year timeline that some engineers had been planning for earlier this year. But the timing is fluid, and hitting that 2025 target is dependent on the company’s ability to complete the self-driving system — an ambitious task on that schedule.

* NEW EV’s AT 2021 LA AUTO SHOWThe Los Angeles auto show opened its doors this week in a scaled down format but for the first time in two years. New EV utility vehicles are all that’s in the spotlight with new models or concepts such as the Hyundai SEVEN, Kia EV9, Subaru Solterra, Toyota bZ4x, Fisker Ocean, and the Vietnamese auto maker VinFast. Many auto brands are conspicuously absent from the show, making for possible disappointment for those shopping for a vehicle now. A non-EV of note is the 493-hp mid-engined 2022 Porsche 718 Cayman GT4 RS.

* EPA SAYS EMISSION SKY IS NOT FALLING: The latest EPA report on U.S. vehicle fuel efficiency (CO2 emissions) says overall, the fuel economy of the U.S. vehicle fleet improved by 2{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} from 2019 to 2020, rising to 25.4 MPG from 24.9 MPG. Preliminary EPA data forecast that fuel economy for GM is down 6.5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} and Ford is down 1{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} because microchip shortages led to building large pickups and SUVs instead of smaller, less profitable vehicles. Only Tesla, Subaru and Honda met current federal mileage requirements without using regulatory credits.

* OCTOBER US SALES SCORECARD Transportation researcher Dr. Michael Sivak of Sivak Applied Research reports that due to the covid pandemic Delta variant the rebound of travel by road, air, rail, and public transit stalled in August. The population-adjusted changes for August 2021 compared with August 2019 are: Road vehicle miles down 5{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, Air passenger miles down 15{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, Rail passenger miles down 34{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}, Trips on public transit down 50{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. October 2021 compared with October 2019 has vehicle sales down 22{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809} and the price of gasoline up 17{cfdf3f5372635aeb15fd3e2aecc7cb5d7150695e02bd72e0a44f1581164ad809}. The report can be viewed here. (https://www.greencarcongress.com/2020/10/20200923-sivakindex.html).

* ROOKIE LUCID NAMED CAR OF THE YEAR MotorTrend announced that the Lucid Air has won the 2022 MotorTrend Car of the Year, the first instance in which the initial product from a new automotive brand has been awarded the “Golden Calipers.” MotorTrend Car of the Year judges evaluated six key criteria for Car of the Year, with Lucid Air excelling at each: efficiency, value, advancement in design, engineering excellence, safety, and performance of the intended function. The Lucid Air was evaluated side by side with 24 highly-regarded vehicles, coming out on top against finalists that included the Mercedes-Benz S-Class, Mercedes-Benz EQS, Porsche Taycan, Honda Civic, and many more.

* NACTOY FINALISTS NAMED: The finalists that will compete for the 2022 North American Car, Truck and Utility Vehicle of the Year (NACTOY) awards were announced at the Los Angeles Auto Show. North American Car of the Year finalists are Honda Civic, Lucid Air and Volkswagen Golf Mk VIII (Golf R/Golf GTI). North American Truck of the Year finalists are Ford Maverick, Hyundai Santa Cruz and Rivian R1T. North American Utility Vehicle of the Year finalists are Ford Bronco, Genesis GV70 and Hyundai IONIQ 5. The three winners will be announced in January 2022.

* US NEWS NAMES BEST VEHICLE BRAND<:> U.S. News & World Report unveiled its Best Vehicle Brand awards and Best Certified Pre-Owned Program award for 2022. The Best Vehicle Brand awards, evaluating 36 brands, recognize industry-wide excellence for cars, SUVs, trucks and luxury vehicles. Honda is Best Car Brand, Hyundai is Best SUV Brand, Ram is Best Truck Brand, Porsche is Best Luxury Brand, and Best Certified Pre-Owned Program is Lexus.

* MAZDA CX50 PREMIERE: Mazda North American Operations hosted the virtual world premiere of the first-ever Mazda CX-50. A completely new model, CX-50 is the first Mazda vehicle to be built at the new Mazda Toyota Manufacturing (MTM) plant in Huntsville, Alabama, with production beginning in January 2022. As a new addition to the Mazda lineup, CX-50 maintains key attributes expected of all Mazda vehicles, including superior driving dynamics and beautiful design. In addition, Mazda has extended this vehicle’s capability to enable drivers to venture further into the outdoors and various terrains. At launch, CX-50 will be available with Mazda’s efficient powertrains, Skyactiv-G 2.5 naturally aspirated engine or Skyactiv-G 2.5 Turbo engine and paired with a six-speed automatic transmission. In the coming years, the CX-50 will also be offered with electrified powertrains, including a traditional hybrid model.

* HOT DODGE PERSONALIZATION: Dodge brand is breaking all the rules, unlocking new, unrestricted, personalization options with new Jailbreak models for 2022 Dodge Charger and Challenger SRT Hellcat Redeye Widebodies. The Jailbreak models unlock color-combination ordering restrictions and add new factory-custom options to deliver enthusiasts the freedom to create a Dodge performance vehicle that perfectly fits their individual style. Jailbreak models include unique badging and boost SRT Hellcat Redeye Widebody output to 807 horsepower with a revised powertrain calibration.

* MISSPELLED CAR BRANDS:The business finance team at money.co.uk, used online analytics tool Ahrefs to find some of the most misspelled brand names on the internet. The top three were all auto brands. Money.co.uk found that popular South Korean automotive manufacturer Hyundai is one of the most misspelled brands on the internet, with an average of 605,000 incorrect global online searches per month. In second place is Lamborghini and Ferrari is the third most misspelled. https://www.money.co.uk/business-loans.htm

*RAM DIESEL RECALL: Stellantis NA is recalling nearly 250,000 heavy-duty Ram diesel trucks globally for an issue with the fuel pumps that may cause the vehicles to stall or prevent them from starting. The affected vehicles are certain 2019 and 2020 Ram 2500 and 3500 heavy-duty pickups and Ram 3500, 4500 and 5500 chassis cab trucks that are equipped with 6.7-liter Cummins turbodiesel engines. The recall covers an estimated 222,410 vehicles in the U.S., 20,539 in Canada and 3,525 in other markets outside of North America.

* CONSUMER REPORTS: Consumer Reports published its annual Auto Reliability Study with Lexus, Mazda and Toyota taking the top three spots for most reliable brands. The top ten ranks include eight Japanese brands, one Domestic brand (Buick) and one European brand (MINI).

* ROUTE 66 HISTORY: From ClassiCars.com we read the Route 66 Road Ahead Partnership has published a new “more accurate history” of Route 66 in conjunction with the Research Encyclopedia on American History from the Oxford University Press. The Route 66 centennial celebration is scheduled for 2026. Established in 2015 with support from the National Park Service and the World Monuments’ Fund, The Road Ahead Partnership set a mission of sustaining and revitalizing Route 66 as a national and global icon. https://oxfordre.com/americanhistory/view/10.1093/acrefore/9780199329175.001.0001/acrefore-9780199329175-e-967

*2021 NHRA CHAMPIONSHIP: Dodge Charger SRT Hellcat driver Ron Capps and Don Schumacher Racing earned the 2021 National Hot Rod Association (NHRA) Funny Car World Championship in the season finale at the Auto Club Raceway at Pomona, California. It is the veteran driver’s second Funny Car title of his 27-year career, following his first championship win in 2016, and the seventh of the 19-year partnership between DSR and the Mopar and Dodge//SRT brands. DSR driver Matt Hagan drove his Direct Connection Dodge Charger SRT Hellcat to the semifinals at Auto Club Raceway and closed out the 2021 NHRA season as runner-up in the Funny Car championship to teammate Capps. In late news, Capps announced he will be leaving the DSR team.

* 2021 NHRA CHAMPIONSHIP: Other title winners in the 2021 NHRA season are Steve Torrance in Top Fuel, Greg Anderson in Pro Stock, Matt Smith in ProStock Motorcycle, and Pro Stock driver Dallas Glenn was named Rookie of the Year.

Stay safe. Be Well.

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Why solid-state batteries present so many rewards, with risks

A current Mercedes-Benz EQS has an energy density of 550 Wh/liter, Mercedes CTO Sajjid Khan noted in July at a Daimler EV strategy event. Solid state batteries “will double the energy capacity and reduce the weight in the same packaging space,” he said, as well as allow for more charging cycles. 

“With solid state, we have the opportunity to rethink the design of battery systems as a whole,” Khan added.

Daimler is currently producing a test series of electric buses with solid-state batteries, the eCitaro G, using cells produced by the French company BlueSolutions. But the batteries need to be pre-heated, which is not practical for private passenger cars.

Solid-state batteries also have advantages in terms of charging time. Volkswagen estimates that an ID4 electric SUV with a 77 KWh battery now takes 25 minutes to add 280 miles of range (going from 10 percent charge to 80 percent) — but solid-state batteries can cut that time to 12 minutes.

Another critical benefit is safety. Battery recalls linked to fires have cost automakers and suppliers billions of euros in recent years. In the most recent case, Chevrolet recalled all 141,000 Bolt EVs it had built since the car was launched, at an estimated cost of $2 billion — and LG Chem, the battery supplier, agreed to pay Chevrolet $1.9 billion to cover the cost.

In 2020, Ford recalled 69,000 Kuga plug-in hybrids at a cost of $800 million. And in February 2021 Hyundai said it would spend $900 million to replace battery systems in 82,000 EVs.

Solid-state batteries can mitigate much of this risk, because they do not use a flammable electrolyte and because a solid electrolyte should act as a shield against the growth of dendrites — spiky, algae-like lithium deposits that can form on the anode, move through the electrolyte and puncture the separator, causing short circuits that can lead to fires. 

“A reduction in dendrites results in a longer-lived cell that can take more load with less fire risk, especially as a flammable liquid electrolyte is no longer required,” Petschenyk said.

Agarwal and Rosina, the Yole analysts, say the risk of dendritic formation is less, but still very real because even solid electrolytes have grains or faults than can allow them to grow.

Finally, there are some benefits that will appear only when solid-state cells are assembled into battery packs and integrated into electric cars, experts say.

If solid-state batteries are indeed much safer, that means electric vehicles will need less robust (and cheaper) components to ensure safe functioning. They could also require less cooling, Rosina said, meaning less energy would be drawn from the battery that could be used for range.