Motoring News

Nikola founder charged with misleading investors

The founder of Nikola, a start-up electric truck maker, has been charged with two counts of securities fraud and one count of wire fraud for allegedly lying to investors. Trevor Milton, who resigned from Nikola ten months ago was released on a $100 million bond after pleading not guilty to the charges in a federal court in Manhattan. At a news conference, U.S. attorney Audrey Strauss, said that Milton had “lied about nearly every aspect of his business.” A spokesperson for Milton’s attorneys said that he was innocent and was wrongly accused “following a faulty and incomplete investigation.”

The company avoided a traditional IPO, opting instead to go public using a SPAC, or special purpose acquisition company. The initial response of the market was positive with Nikola at one point having greater book value than Ford Motor Company. However, last September a

New York based short-seller, Hindenburg Research, leveled accusations against the company and Mr. Milton, contending that many of its claims were untrue. Nikola, based in Phoenix, is working to develop a hydrogen powered heavy-duty semi truck.

Gladiator down temporarily

Stellantis has halted production of the Jeep Gladiator, a midsize pickup truck, due to a shortage of semiconductors, which are critical electronic components that control a wide range of functions in a modern vehicle. The semiconductor shortage is a worldwide problem that has adversely affected most automakers. In the case of the Gladiator, production at its plant in Toledo, Ohio was halted last week. The company expects production to resume this coming Monday.

The Jeep Gladiator has become the nation’s third most popular midsize pickup truck, trailing the Toyota

Tacoma, which is in first place, and the Ford Ranger. Production of the Jeep

Grand Cherokee and Dodge Durango was suspended on July 11 because of the chip shortage. These vehicles are expected to resume production on August 9.

Ford’s Maverick orders

Ford has announced that more than 74,000 people have ordered its new compact pickup truck with deliveries set to begin for the 2022 model year. The base version of the Maverick will feature a hybrid drivetrain. All models will use a crew-cab passenger compartment. Ford expects the truck to compete with compact sedans for buyer attention.

Ford current does not offer a compact or subcompact sedan in this country.

Audi RS3

Based on the Audi A3 sedan, the 2022 Audi RS3 will have a turbocharged, fivecylinder, 2.5-liter engine. All-wheel drive with torque vectoring will be standard. The horsepower rating has grown by seven when compared to the last RS3,

offered as a 2020 model year vehicle. The new version will produce 401 horsepower and 369 pound-feet of torque. Working through the standard seven-speed dualclutch automatic transmission, Audi is predicting a 0-to-62 mile-per-hour time of 3.8 seconds. Sixty-two miles per hour is equivalent to 100 kilometers per hour. In the United States, only a sedan version will be offered. Europeans may also select a hatchback body style.

Bronco Raptor

While Ford Bronco Sport models are showing up on roads in the Hartford area, prompting numerous sightings, the larger and more off-road capable Bronco is just beginning to arrive. That, however, has not stopped Ford from working on a Raptor version of the Bronco. The Raptor label is reserved for Ford’s highest performance

and most off-road capable trucks. It is expected that Ford will equip the Bronco Raptor with the suspension, engine

and tires needed for high-speed desert running. It is slated to arrive in 2022.

Second Rivian plant

While the company has yet to deliver its first production vehicle to a customer, Rivian is already planning for a second plant, according to a document sent to state economic development officials. Rivian is on the verge of producing an electric pickup truck, sport utility vehicle, and commercial delivery vehicle for

Amazon, which is a major investor in the startup automaker. According to the document, Rivian has budgeted $5 billion for the plant and is seeking a 10,000acre parcel for its construction. Initial outreach documents to state officials had specified 2,000 acres were needed. Finding a 10,000-acre parcel is expected to be a significant challenge.

No state has been named as a likely candidate for the plant. However, sources familiar with the planning have said Arizona is a possibility. If the plans are carried out, Rivian plans to start construction of the facility in the second quarter of this year with vehicle and battery production to start in the spring of 2023. However, a renewed surge of COVID-19 could postpone that schedule.

Tesla, Nissan and Ford have a profitable quarter

Tesla reported that it had earned $1.14 billion in the second quarter of 2021. Despite a chip shortage, Tesla managed

to deliver 201,304 vehicles in the second quarter. Only 1,895 of those were the upper end Model S hatchback sedans and Model X SUVS. The rest were Model 3 sedans and Model Y crossover vehicles. Deliveries were 121 percent higher than in the same period last year. During the second quarter of 2020, Tesla’s earnings came to $104 million.

Meanwhile, Ford Motor Company surprised observers by announcing a profit in the second quarter. This prompted the company to raise estimates for total earnings this year to between $9 billion and $10 billion.

Also surprising analysts, Nissan announced that in the second quarter of 2021 it earned $688 million. Analysts had expected a loss. With the positive news on second quarter earnings came a warning that the shortage of electronic chips poses a significant problem for production and earnings during the third quarter of the calendar year.

Tom Hanks’ Airstream and tow vehicle to be auctioned

Later this month at the Bonhams

Quail Lodge Auction, Tom Hanks’ 1992 Airstream trailer and its tow vehicle, a 2011 Ford F-450 Super Duty, are to be sold to the highest bidder. The truck is powered by Ford’s 6.7-liter Power Stroke diesel engine. The Airstream trailer is a Model 34 Limited, which he used during filming at remote locations. Among the movies that were shot with this trailer nearby were “Sleepless in Seattle,” “Forrest Gump,” “Philadelphia,” and

“Sully.” All accessories and furnishings are included in the sale, along with a Honda generator for times when there is no opportunity to use power from the grid at a campsite. Among the trailer’s unique features is a Tom Hanks autograph on one of the air conditioners. Hanks also autographed the instrument panel of the Ford tow truck, which has gone fewer than 4,200 miles. It will be sold separately. The auction takes place this coming Friday. Quail Lodge is located in

Carmel, California.

Stellantis CEO issues warning on EV pricing

Carlos Tavares, CEO of Stellantis, the company formed by the merger of Fiat Chrysler Automobiles and the PSA

Group of France, has issued a warning to

the industry about the cost of electric vehicles. In a one-on-one interview with Reuter’s Joe White, Tavares noted the

competitive nature of the automotive market and worried that in the move to electrification, vehicle cost, which is already an issue, will rise. He estimated that with research and development, EVS will cost 40 percent more to build than comparable internal combustion engine vehicles. That, he added, is far more than can be passed on to consumers. To solve this problem, the company needs to pursue cost reductions. “We don’t want to disconnect with the middle classes,” Tavares was quoted as saying.

His goal is to see plug-in hybrids and electric vehicles make up at least 40 percent of sales in North America and 70 percent of sales in Europe by 2030. Today the figures are 4 percent and 14 percent, respectively.

VW to retire Passat

Volkswagen is preparing to produce a Limited Edition Passat to mark the model’s end in the United States. The VW Chattanooga, Tennessee plant will make 1,973 of the vehicles, commemorating the year the Passat was introduced in Europe. The end of production will come at the end of the 2022 model year.

The Limited Edition Passat will be offered in four unique color combinations.

Four-hundred-eleven of the cars will be painted in Aurora Red Metallic with Titan Black interiors. The original Passat’s production code was 411. Another 423 of the vehicles will offered in Racing Green Metallic with Mauro Brown interior. The number 423 represents the Chattanooga area code. Pure White models with

Mauro Brown interiors will be offered to 524 buyers, which represents the opening date for the plant, May 24, 2011. And finally, there will be 615 Platinum Grey Metallic Passats with Titan Black interiors. Here 615 stands for the number of generations of the Passat (6), the number that were made in the United States (1) and the five for five decades of U.S. Passat sales. This includes the first Passats, which were sold as Dashers here. In its place at the factory, VW intends to make electric vehicles, transforming the plant into the center of production for its EVS in North America. Volkswagen has seen its sale of sedans shrink in recent years, as has the rest of the auto industry. In their place, automakers are supplying willing buyers with sport and crossover utility vehicles. In Volkswagen’s case, the relatively new Atlas and Atlas Cross Sport are in

high demand.