Editor’s Note: This week, Peter discusses the current state of the business for the U.S. automakers and their obsession with producing hot-rodded off-road vehicles in order to maximize profits from their ICE-powered machines. In On The Table, Toyota offers real affordability with the 2027 Corolla Hatchback, and we take another look at two special offerings from the upcoming RM Sotheby’s Monterey Auction. Our video this week features the “1966 12 Hours of Sebring” with Ferrari, Ford and the Chaparral. Our AE Song of the Week is “These Days” by Jackson Browne. In Fumes, Peter brings us the next chapter in his new series, “The Racing Machines.” And finally, in The Line we have F1 results from Spa, Belgium and INDYCAR results from Nashville. Remember, you can read past issues by scrolling down and clicking on “Next 1 Entries.” Onward! -WG
WE ARE TAKING A MUCH-NEEDED SUMMER BREAK FOR SOME WELL-DESERVED R&R. WE WILL RETURN WITH THE AUGUST 19TH ISSUE. – PMD & WG
By Peter M. DeLorenzo
Detroit. Now that we’ve been hit with the realization that Detroit is going to keep building vehicles specifically aimed at this market for the immediate future – while the global automobile business keeps accelerating away in another direction – it’s clear that the town formerly known as The Motor City is in danger of sliding into a dimension that is looking frighteningly similar to the North American version of what once was the British motor industry. That is, cars and trucks built to exist in this market and nowhere else.
For the short term, this will keep factories running and profits coming, along with overall stability, but long term this development could prove to be calamitous for Detroit. One thing the stumblebums in Washington refuse to understand is that careening changes in regulations and maliciously misguided tariffs will serve to ultimately destroy one of the founding pillars of the American industrial fabric, because this just in: the auto industry needs to be able to plan at least five years out. And robbed of this basic ability to plan ahead, automakers and their suppliers are doomed to be held captive and swallowed whole by the constant thrum of idiocy emanating from Washington.
So, what’s left for the U.S. automakers? Business as usual until further notice, because investing in new is precariously dangerous. What does it mean, really? While the rest of the world forges ahead with breakthrough developments in battery technology, charging infrastructure, and all of the other issues and challenges associated with EVs, the U.S. automakers will churn out giant ICE trucks and SUVs because they know how to do it and do it very well indeed.
This is what engineering in a vacuum looks like.
And while this trend continues here until further notice, we will have high-performance sports cars, supercars and muscle cars catering to enthusiasts occupying one quarter of the ICE hemisphere. While gonzo pickups, SUVs and crossovers of all stripes – tricked-out and otherwise – and hot-rodded off-road vehicles make up the other 75 percent of the market.
Since we’re no longer waiting for the promised euphoria of the EV Age to come to fruition, the real action for manufacturers will be in maximizing the profits from building their ICE-powered machines.
As high-performance cars get more difficult to come by except for a select few – either because of price, or scarcity, or both – the cash generation is in what I’ve dubbed the Off-Road Dude Ranch segment, where off-road capability – which will, in fact, rarely if ever get used to even one percent of capability – is the calling card for near-term profits.
Machines like the Ford Bronco Raptor fit this mold perfectly. It has the look of a seriously aggressive, bad-ass off-road monster, which is exactly what the new legions of Off-Road Dudes and Dudettes seem to be craving. These Off-Road Dude Ranch tourists may never come within 3,000 miles of Baja, but just knowing that they could attack the off-road canyons and desert washes if they wanted to is just the kind of magic elixir they’re looking for, even if they probably won’t even traverse so much as a parking lot curb during their ownership.
I get why the latest manufacturer focus is full-zoot rough riders and all-terrain mashers. Sort of. After all, that’s what they think people want and need in order to attack the Canyons of Costco and the Hollers of Home Depot. Even if you aren’t planning to go to Moab next week, you could if you wanted to, right?
And therein lies the hook. The “hook” that auto manufacturers have exploited since people traded in their horses. Some of the past hooks were: You could sit on the front row at Indianapolis in your BelchFire8, if you wanted to, or you could qualify for Le Mans in your SuperSqualo Meteor, if you wanted to. And even now: You could qualify for an IMSA GTD race in your Porsche 911 GT3 RS, if you wanted to. These hooks have proved to be time honored, lethally addictive and highly profitable.
And now, with this burgeoning Off-Road Dude Ranch segment, it’s happening all over again, with an entirely new set of parameters. Extreme, track-focused high-performance is out (or fading away with stratospheric prices and a large dollop of unobtanium), replaced by rugged, off-road performance. Every manufacturer worth its 22”+ off-road wheel package (FYI: the Bronco Raptor has 37” off-road tires) is offering off-road performance versions of their various charges, whether they’re needed or not. Beyond the usual suspects – Chevrolet, Ford, Ram, Toyota, Land Rover, et al. – even GMC, for instance, is offering an entire lineup of AT4 off-road-oriented spec vehicles. Which means it’s now officially a full-on epidemic. And you can expect to see more and more of these extreme off-roaders come to market, because it is “the thing” right now.
It’s interesting that the lives of manufacturer PR minions have changed dramatically too. Once upon a time, they used to book racetracks all over the country for the latest “fly-in” press events to tout their newest high-performance charges. Now? They’re scouring exotic landscapes previously only attainable by mule to stage press events designed to demonstrate the off-road capabilities of their latest BelchFire SuperPounder trucks, crossovers and SUVs. These PR minions are being forced to trade in their obligatory black pants and white logoed shirt outfits for canteens and wardrobes designed for the desert scrub brush aesthetic. So, there’s that.
The times are getting crazy. So crazy, in fact, that some journos are actually criticizing car companies for even bothering to offer sedans or traditional hatchbacks, believing that we’re supposed to all be driving SUVs-and-jacked-up-pickups-all-the-time now. Another journo camp is firmly entrenched in the EV-centric “Why are you still building ICE vehicles at all?” And finally, there’s the journo camp insisting that Detroit needs to start building sedans again (which they are planning to do, by the way).
But the auto manufacturers don’t exist for the edification of auto journalists, except when they need something from them, of course. The desired goal of these manufacturers is to make cargo ship loads of ca$h-ola. And they’ve been pretty damn successful at it.
As for the real world, consumers are just worried about the fundamental affordability of vehicles in general, which is why Ford’s Maverick pickup is still the most important vehicle that company makes, even more so than its jacked-up Broncos.
Does any of this make any sense? Maybe. I get the profitability thing, and I understand the latest bit of creative automotive Hose-O-Rama going on, but there are still consumers out there who just want a decent vehicle for a decent price. I strongly believe that there are plenty of car buyers out there who happen to like sedans and hatchbacks, including me. They’re fun and efficient instead of ground pounding and lumbering. It’s just a different style of motoring. Are there fun SUVs and crossovers to drive out there? Sure, but that doesn’t mean everyone has to have one, or want one.
As I’ve said repeatedly since Day One of this website, the automobile business is first and foremost a fashion business. It is consumed by trends, fads and what is perceived as “hot” at the moment. And before we’re immersed in the Next Big Thing – the ever-coming EV Revolution, perhaps? Oh wait, never mind – these vehicles designed to take us on adventures to nowhere are going to be the thing until further notice, which is not exactly good news in my book.
And that’s the High-Octane Truth for this week.
Editor’s Note: Click on “Next 1 Entries” at the bottom of this page to see previous issues. – WG