• 2023 Nissan Altima gets upgraded everywhere but under the hood

    Nissan announced the 2023 Altima in June. Now that the family sedan has reached dealers, it’s time for pricing. There are small price bumps to go with the small changes to made to next year’s model. There’s the new Nissan logo all over, larger trim-specific V-motion grilles, and LED headlights for every trim. The Platinum trim that was AWD-only departs, leaving S, SV, SR, SL, and SR-VC Turbo; when powering both axles, the S drops away at the bottom, leaving SV, SR and SL. The SR now gets its own unique black chrome insert and SR badging. A couple of new colors and four new wheel designs join the menu. 

    Nissan raised the destination charge from $1,025 to $1,095. Prices for the 2023 Altima after destination, and their changes from 2022, are:

    • S: $26,385 ($710)
    • SV: $27,185 ($510)
    • SR: $28,585 ($910) 
    • SL: $33,085 ($1,970)
    • SR VC-Turbo: $36,085 ($4,060)
    • SV AWD: $28,685 ($610)
    • SR AWD: $30,085 ($2,035)
    • SL AWD: $34,585 ($2,070)

    Inside, select trims get an upgraded instrument cluster with a seven-inch information screen and a much bigger 12.3-inch touchscreen infotainment system. The latter replaces the eight-inch option on the previous model. The SR upgrades to dual-contrast stitching, while wireless Android Auto, Apple CarPlay, and wireless phone charging are standard on SL and SR VC-Turbo grades, optional on SV and SR grades.

    Nissan Safety Shield 360 comes standard across the range, meaning front and rear automatic emergency braking, lane-departure warning, blind-spot warning, rear-cross traffic alert, and automatic high-beam headlights.

    The engines carry over. That means the standard, naturally aspirated 2.5-liter four-cylinder making 188 horsepower and 180 pound-feet of torque on the front-drivers, 182 hp when optioned with AWD. Then there’s the turbocharged, variable compression 2.0-liter four-cylinder making 248 horsepower and 273 pound-feet of torque on 93 octane, 236 hp on regular gas, which can only be had with front-wheel drive. Both shift through CVTs.

    For GREAT deals on a new or used Buick or GMC check out Motor City Buick GMC TODAY!


  • Ford shuffles management, seeks new global supply chain head

    DETROIT — Ford is restructuring its vehicle development and supply chain operations, shuffling multiple executives just days after announcing that it would build up to 45,000 vehicles with parts missing due to shortages.

    The Dearborn, Michigan, automaker gave some executives new roles and said that its chief financial officer will begin reworking supply chain operations until a new global purchasing chief is hired.

    The changes arrive at a time of profound change for Ford and the auto industry, which for more than a century have made a living by selling petroleum-powered vehicles. The company has plans for half of its global production to be electric vehicles by 2030, but like its main competitors, Ford will need to keep selling gas-burning vehicles to fund the massive transition. 

    Earlier this year CEO Jim Farley split the company into two units, Ford Model e to develop electric vehicles, and Ford Blue to handle internal combustion cars, trucks and SUVs.

    Early Thursday, Ford announced that CFO John Lawler would run a makeover of its supply chain operations until the company finds a new supply chain chief.

    Doug Field, who was hired from Apple Inc., will now become chief advanced product development and technology officer. He’ll lead vehicle design and hardware engineering, and continue duties overseeing electric vehicles, software and digital systems, and driver assistance systems.

    Former Chief Operating Officer Lisa Drake, now vice president of EV industrialization, takes on manufacturing engineering as Ford plans to produce EVs at a rate of 2 million per year by the end of 2026. 

    The company also announced two new hires from Hewlett-Packard and Google to develop vehicle software and driver assistance systems. 

    “Developing and scaling the next generation of electric and software-defined vehicles requires a different focus and mix of talent from the accomplished Ford team,” Farley said in a statement.

    Ford previously announced that Hau Thai-Tang, former head of product development and purchasing, will retire Oct. 1 after more than 34 years with the company. It announced Thursday that Dave Filipe, vice president of vehicle hardware, will retire.

    Guidehouse Research Principal E-Mobility Analyst Sam Abuelsamid said Farley is changing the people Ford hires as it joins other automakers in developing new vehicles that can be changed over time with software updates. “Customers like to get new features added over the life of a car,” he said. “The industry likes it because they see potential for new revenue streams.”

    But that change takes a different mindset than people who are used to developing vehicles that aren’t changed for years until the next version comes out, he said. 

    Ford, he said, will probably experience instability for a while as large changes happen. “They need to hire a lot of people with different skill sets,” he said.

    On Monday, Ford revealed that a parts shortage would keep many of its most profitable vehicles sitting on lots waiting to be fully assembled. The issue forced the automaker to slash its third-quarter earnings forecast. The company also has been hobbled by problems with manufacturing launches of new vehicles and high warranty claims.

    Ford also said Monday that its inflation-related supplier costs for the third quarter were about $1 billion above what it had been planning for.

    Last month the company let go of 3,000 white collar workers to cut costs and help make the long transition from internal combustion vehicles to those powered by batteries

    Governments across the globe are pushing to eliminate combustion automobiles to mitigate the impact of climate change. Companies like Ford are orchestrating the wind-down of their combustion businesses over multiple years, even though they are still generating the cash to fund electric vehicle development.

    Shares of Ford fell just under 1% Thursday as the broader markets dipped. The shares are down about 38% for the year.

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  • Ford thinks Bluetooth LE can keep pedestrians and cyclists safe from cars

    One good thing that came out of the pandemic is that more people picked up cycling. In the first three months of 2021, American consumer spending on bikes and cycling accessories increased by 34 percent year on year to $8.2 billion. However, the pandemic also saw more die and suffer injuries while biking. According to the National Safety Council, 1,260 cyclists were killed in 2020, a 16 percent increase from 2019.

    It’s a problem that Ford thinks technology can address. On Monday, the automaker announced it’s working with Commsignia, PSS, Ohio State University, T-Mobile and Tome Software to explore how a smartphone app could warn drivers of pedestrians and cyclists they may not see. As someone sharing the road with a car, you would install the company’s software on your phone. With the help of Bluetooth Low Energy, vehicles with Ford’s Sync infotainment system would see you as “beacons.” If the car then determines there’s the potential for a crash, it will warn the driver using audiovisual cues.

    According to Ford, its approach has a few advantages. One is that Bluetooth LE is nearly ubiquitous. The technology has been part of the Bluetooth protocol since 2009, meaning every modern smartphone has access to it. If you own a Ford vehicle, you won’t need to bring your car to a dealership for a hardware upgrade since the Sync system features Bluetooth compatibility. The other advantage of using Bluetooth LE is that your car won’t need to see pedestrians and cyclists before it can warn you. Ford and T-Mobile are also working on a version of the app that uses 5G instead of Bluetooth LE.

    In practice, the company’s approach is reminiscent of the COVID exposure notification apps some countries and states deployed at the beginning of the pandemic. As you may recall, those also used Bluetooth LE. However, despite backing from Apple and Google, they were never effective due to low usage. In Canada, for instance, the federal COVID Alert app was only downloaded 6.9 million times and logged 63,117 positive tests. Put another way, nowhere near enough Canadians downloaded the software to make it an effective contact tracing tool. Ford’s app is likely to experience some of the same issues. 

    As an avid cyclist, I can’t tell you how many people I’ve seen riding their bikes at night without an LED light to make themselves visible to traffic. On the other hand, statistics suggest motorists have been driving more aggressively in recent years, leading to the aforementioned increase in cyclist deaths as well as vehicle crashes. Any kind of intervention would be welcome, but Ford’s app isn’t likely to be a meaningful solution if it ever comes to market. While the Bluetooth LE solution to COVID had only one uphill climb, apps like Ford’s have two: adoption by cyclists and adoption by automakers.

    For GREAT deals on a new or used Cadillac check out Ghent Cadillac TODAY!
  • BlueCruise Adds Hands-Free Lane Changing Feature

    BlueCruise assists in shifting the vehicle’s position away from bigger vehicles, such as semis, in adjacent lanes. - Photo: Ford

    BlueCruise assists in shifting the vehicle’s position away from bigger vehicles, such as semis, in adjacent lanes.

    Photo: Ford

    Ford will introduce BlueCruise 1.2 and Lincoln ActiveGlide 1.2 this fall with new, hands-free driving features to create a more human-like driving feel.

    Available BlueCruise 1.2 and ActiveGlide 1.2 will include three features:

    • Lane change assist will perform a hands-free lane change when requested by the driver tapping the turn signal. The system can also suggest a lane change when following slow-moving traffic.
    • Predictive speed assist will automatically adjust the speed when the vehicle approaches a sharp curve and will help signal the driver ahead of time when a speed change is about to occur so he or she knows why the vehicle is slowing.
    • In-lane repositioning will keep the vehicle in its lane while subtly shifting the vehicle’s position away from vehicles in adjacent lanes, especially when next to bigger vehicles such as semis.

    Ford said in a statement that it is continuing to add features to BlueCruise and enhance its advanced driver assist systems to offer a more human-like driving performance, in addition to refining visuals, sensing, and steering experiences. It also stated that maps are continually being improved with over-the-air updates identifying pre-qualified sections of divided highways where BlueCruise can be used, which currently covers more than 130,000 miles.

    Once a pre-qualified road is identified, BlueCruise-equipped vehicles sense and help confirm lane lines are visible, the driver has eyes on the road and other conditions appropriate before transitioning to hands-free driving. BlueCruise uses animated cluster transitions featuring text and blue lighting cues to communicate that the feature is in hands-free mode, which can even assist drivers with color blindness.

    More than 75,000 Ford and Lincoln customers have enrolled in BlueCruise and ActiveGlide, with more than 16 million hands-free driving miles accumulated through the end of August.



  • 2023 Jeep Grand Cherokee 4xe, Wrangler 4xe get new editions

    Following a slew of electric SUV announcements, Jeep is giving its existing electrified models a little love at the Detroit Auto Show. Both the 2023 Jeep Grand Cherokee 4xe and Wrangler 4xe are getting new editions with unique trimmings. And in the case of the Wrangler, it represents a new entry point for the plug-in hybrid.

    2023 Jeep Grand Cherokee 4xe 30th Anniversary Edition

    The Grand Cherokee’s special edition (shown at top) is fitting for the Detroit Auto Show, since the original model launched at the same show in 1992 (though that was back when the show was still in January). That original Grand Cherokee literally smashed through the doors of the convention center (shown in the video above). This one is likely going to be quieter, mainly because it’s a plug-in hybrid. The special edition is a $4,700 package on top of the cost of the 4xe, and it’s distinguished by its body-color bumpers and cladding, black trim and 20-inch wheels, blue acents and dual exhaust. It also includes a number of nice features such as black leather, wireless phone charging, nine-speed audio system, ventilated front seats and forward collision prevention systems that monitor intersections during turns. This version of the Grand Cherokee will be available to order later this year with deliveries coming early next year.

    2023 Jeep Wrangler Willys 4xe

    So far, the Wrangler 4xe has only been available in extra fancy Sahara or extra off-roady Rubicon trims. For 2023, the Willys trim is being added to line, along with a slightly lower base price of $55,590 with destination. That’s $600 less than the 2022 Sahara, and $770 less than the 2023 Sahara. It gets some familiar Willys trimmings such as the black grille, Willys hood decals and vintage “4-Wheel Drive” rear decal. But the decals get unique 4xe tweaks such as the blue accents around the Willys decals and the addition of “Electric” on the “4-Wheel Drive” decal. It also comes standard with a rear limited-slip differential, black 17-inch wheels with mud-terrain tires, rock rails, full-time four-wheel-drive and LED lighting, plus a nine-speaker audio system. The Willys can be ordered now, and deliveries are coming later this year.

    Related video:


    For GREAT deals on a new or used Polaris check out Weeks Polaris TODAY!


  • BMW Promises New Round Battery Cells Will Increase Range By 30%

    Next-generation electric vehicles from BMW are currently under development and are expected to hit the market in the middle of the decade. New batteries are one component of what the carmaker refers to as Neue Klasse (New Class), a new platform and family of new technologies that will provide up to 30% more range than BMW’s current models. After we discuss the stats, we’ll take a look at the company’s innovative battery technology.

    BMW will debut its sixth generation of electric drive technology for the Neue Klasse, which will make use of new batteries. By transitioning to round cells specifically created for use in vehicles based on the Neue Klasse architecture, the Bavarian firm will radically alter the cell format and cell chemistry of its batteries. The prismatic cells currently used by BMW will be replaced by these new round cells.

    The new battery cells will have a diameter of 46 millimeters and two distinct available heights depending on their application, according to the business. On the cathode side, the cell chemistry will have a higher concentration of nickel while having a lower concentration of cobalt. In response, the silicon content on the anode side will rise, and this new chemistry will produce a volumetric energy density that is more than 20% greater.

    Neue Klasse will make a number of modifications, including the addition of an 800-volt electrical infrastructure that will improve the way energy is delivered to DC fast charging stations. BMW claims that this will result in a 30% reduction in charging times from 10% to 80%.

    Speaking of charging, it’s also important to note that the company guarantees a 30 percent increase in range for its top-of-the-line vehicles thanks to upgraded batteries. Additionally, and possibly even more significantly, the manufacturer predicts a price reduction of up to 50% compared to existing fifth-generation batteries.

    BMW will establish new battery manufacturing facilities in China and Europe with a combined annual capacity of up to 20 GWh in order to guarantee the supply of batteries required for Neue Klasse-based vehicles. In North America, two more cell factories will be constructed, although no partners have yet been named.

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    Source: BMW

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  • 2022 Technology Trends: Digital Fleet Management and the Self-Managed Fleet

    October 18, 2022 |11:00 PST |Duration: 1 Hr

    When the Connected Fleet Revolution began, it was all about turning raw data into fleet insights. Telematics devices collected data on vehicles, that data was fed into a fleet management system, and from there fleet managers could run reports and create action plans.

    But there was a problem.

    No matter which fleet management system you use, the insights require someone to notice the alert. Log in to the dashboard. Take the action.

    Until now.

    The next generation of fleet technology is solving this problem — taking tiresome tasks off fleet managers’ plates.Register to learn how the latest tech trends can be a game changer for fleet operations, reduce monotonous tasks, and ultimately make life easier for fleet managers.

    Speakers

    Jason Walton

    Director of Product Marketing | Ridecell

    Heidi DiAngelo

    Strategic Business Development Director | Ridecell

    For GREAT deals on a new or used Nissan check out McPhillips Nissan TODAY!
  • Junkyard Gem: 1993 UMC Aeromate Food Truck

    One of my favorite things about living in the Mile High City is all the food trucks roaming the neighborhoods here. I’m a regular at such fine mobile eating establishments as Tacos el Huequito, Mikes2Kitchen, and Yuan Wonton, and I’m pleased that South Denver’s metal-centric Brutal Poodle bar now has its own food truck. The sad part about food trucks, however, is that they’re trucks, and sometimes old trucks wear out and have to be sent to the knacker’s yard. Here’s a once-ebullient Denver food truck that met that fate and now resides in a self-service yard just south of the city.

    This truck started out as a member of the extended UMC Aeromate family, built in Indiana by the company now known as Utilimaster. I couldn’t find much useful information about this particular model, which seems to have the windshield and nose of one of the many UMC-based RVs instead of the typical long snout of most Aeromates.

    What I do know is that it’s based on an early-1990s Chrysler minivan chassis, complete with 3.3-liter V6 engine and the instrument cluster out of a 1992 Plymouth Voyager. The 3.3 made 150 horsepower in 1993, and it was installed in Chrysler minivans through 2010.

    150 horses (and 180 pound-feet) isn’t much for a big truck packed with a complete kitchen, and the strain on a Torqueflite automatic transmission designed for a 3,400-pound minivan must have been severe. I think the drivetrain on this 29-year-old truck just couldn’t hold up under the demands of a hard-working crew of sandwich entrepreneurs in the extreme weather and traffic conditions of High Plains Colorado.

    The county licensing sticker expired in late 2019, so it took a couple of years for this UMC to reach this place.

    Don’t weep for the Little Big Sandwich Truck, though, because the LBST Empire upgraded to a newer, GM-built school bus a few years ago and appears to be slinging sandwiches outside Denver-area breweries to this day.

    The headlights and marker lights clearly came from a late-first-generation Dodge Caravan/Plymouth Voyager (the second-generation Chrysler minivans, which debuted in the 1991 model year, got different noses). The grille looks like typical RV equipment.

    I’ve seen a few junked ice cream trucks over the years, but somehow a sandwich truck with a stenciled snorkeling dachshund seems sadder.

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    For GREAT deals on a new or used Alfa Romeo check out McKevitt Alfa Romeo TODAY!
  • Used Vehicle Market, Economy Not Sick — But Not Too Energetic Either

    Roundtable host Joe Miller dove into detailed economic outlooks with panelists (L to R): Jonathan Smoke, chief economist at Cox Automotive; Tom Kontos, chief economist at ADESA; and Dr. Alex Yurchenko, chief data science officer at Black Book, at the International Automotive Remarketers Alliance's annual Summer Roundtable in Nashville, Tennessee, on Aug. 17, 2022. - Photo: IARA

    Roundtable host Joe Miller dove into detailed economic outlooks with panelists (L to R): Jonathan Smoke, chief economist at Cox Automotive; Tom Kontos, chief economist at ADESA; and Dr. Alex Yurchenko, chief data science officer at Black Book, at the International Automotive Remarketers Alliance’s annual Summer Roundtable in Nashville, Tennessee, on Aug. 17, 2022.

    Photo: IARA

    The U.S. economy does not appear to be in a typical recession, if at all, with plenty of consumer money, vehicle demand, and available jobs on the sidelines.

    That could redound to the used vehicle markets, wholesale and retail, which appear to be drifting to a more normal balance but still must trek a long way to get there, according to the sum total of comments and figures presented by remarketing economic analysts at the IARA Summer Roundtable in Nashville, Tennessee, on Aug. 17.

    Host Joe Miller of AutoIMS moderated a panel, “Economics As a Service: A Real-Time Look at the Economic Drivers of Remarketing,” which drew insights from the solid troika of familiar remarketing industry experts Jonathan Smoke, chief economist at Cox Automotive; Tom Kontos, chief economist at ADESA; and Dr. Alex Yurchenko, chief data science officer at Black Book.

    Are We in a Recession or Not?

    The panel first addressed the question of whether the U.S. economy has dipped into a recession. Short answer: No, thanks to conflicting indicators that don’t add up to a traditional recession.

    “A true recession is broad-based decline in economic activity that goes for a few months,” said Smoke, who led the panel on the overall U.S. economic picture. “Although we’ve had two negative quarters, GDP is not actually measuring net income, just product. What gave us a negative 1Q, was a surge in imports because congestion ended.”

    Russia also invaded Ukraine, causing inflation to shoot up, resulting in negative net exports for the first quarter, Smoke said. Since retailers did not sell as much in the first quarter, inventories grew, and then did not grow in the Q2, resulting in a slight decline, he added.

     “Consumer spending continued to be strong in each of the quarters, but slowing,” Smoke said. “It feels like a recession, with housing and the pain in the tech sector, but the rest of the economy is holding in there. I’m in the camp we are not in a recession now, and I do believe we can avoid going into one.”

    Overall, the chance of recession is about 45%, said Smoke, who relayed that figure to executives at his company. Business leaders should prepare for both.

    Smoke said if the next two quarters this year sees stronger economic behavior, then it could result in 2% annual growth, down from 6% in 2021. In many parts of the U.S. the cost of a gall on gas has fallen below $4, a decline of 21% over the previous six weeks.

    Jonathan Smoke, chief economist at Cox Automotive, told the IARA audience that he puts the chance of a full recession at 45%, however, enough pillars of the economy appear to be holding together. - Photo: IARA

    Jonathan Smoke, chief economist at Cox Automotive, told the IARA audience that he puts the chance of a full recession at 45%, however, enough pillars of the economy appear to be holding together.

    Photo: IARA

    What Does the Alleged Recession Mean for Automotive?

    For the automotive industry, this so-called recession brings rare circumstances.

    “We’ve never gone into recession with zero supply,” Smoke said. “Some of the dynamics will be challenging. The consumer is still hanging in there. The consumer is not pulling back but adjusting.”

    Consumers may be shifting spending away from big durable goods amid higher interest rates, but so far are not throwing in the towel, as evidenced by credit card data that does not signal a large pullback, Smoke said.

    And the reason is they are still employed. Payrolls have recovered from the pandemic and job losses are small. As of August, the unemployment rate was the same as in February 2020 and in 1969: 3.5%.

    “You always had thousands of jobs lost before a recession began,” Smoke said. “Inflation is still biting into income, and households are not doing as well, but if we convince ourselves into a recession and behave like one, then we’ll be in a recession.”

    Most household are in solid financial shape, with many having refinanced their homes or bought them with low interest rates, Smoke said. “Debt coverage ratios are very strong. 80% of households have more liquid money, which is three to five times more money relative to when the pandemic began.”

    That leads to a potential upside, with $3 trillion of savings in American consumer accounts enabling many households to withstand inflation.

    While the auto market is experiencing a down year, the positive numbers of 2021 are tough to repeat given the unprecedented stimulus that has now subsided, Smoke said. “The auto market is dealing with inflation and declining consumer sentiment. We have far less supply than when we started the year.”

    In addition, the Omicron variant depressed numbers in January, followed by delayed tax refunds that many consumers use to buy vehicles. “All of that took normal energy out of used vehicle retail market,” he said. Now the combination of supply chain constrains and rising interest rates over the summer has added pressure and changed the math on monthly payments.

    Those median household income struggles will deter more buyers of used vehicles, since they must spend more on rent, food and energy, Smoke said. They will drop out of big purchases.

    “The average used vehicle payment is $400,” Smoke said. “Most households with used vehicles can’t afford to spend more than that. Those consumers can’t buy anymore.”

     Meanwhile, wealthier households, who are in better shape, likely will opt to buy the used vehicles instead of even higher priced new ones.

    “Upper income households are going into markets they usually don’t,” Smoke said. “The No. 1 selling used vehicle is the 2016 used Honda Accord, but now higher income and credit consumers are buying the vehicle. They’re buying more used because they can’t buy new.”

    More Notable Vehicle Trends

    • Smoke likened new vehicle production to an object bobbing along the ocean floor, due to the invasion of Ukraine, European energy shortages, Chinese COVID lockdowns, and earthquake in Japan. “2023 will be the start of a slow crawl off the ocean floor,” he said.
    • Days’ supply drifted higher because the sales pace has slowed. Low inventory, slower production, higher prices, higher interest rates, and fewer incentives all play into fewer deals.
    • As a result, the used market overall has edged closer to normal in days’ supply. While used vehicles are depreciating again, they are still high priced.
    • Summing up the new and used vehicle market signals, Smoke predicted, “We won’t see 17 million in vehicles sales for another five years.”

    China-Taiwan, Russia-Ukraine & Chip Supply Wild Cards

    In the geo-political world, two big risks lurk for the automotive market: Russia-Ukraine and China-Taiwan.

    Given the relative stalemate between Russia and Ukraine, the energy and food markets have calmed somewhat, but Europe is facing a tough winter with squeezed energy supplies.

    A Chinese attack on Taiwan, however, would be a major disruptor, leading to reverberating consequences in the supply chain, especially with semiconductors used for vehicle production.

    “The heart of the semiconductor industry is Taiwan,” Smoke said. “What gave us problems last year in production and supply, would give us problems again. You would have winners and losers in that situation.” While Smoke put the percentage chances of such an event in the single digits, it begs the question, “How would we react in a world that faced that problem?”

    More likely than not, absent a full-blown war, the automotive industry could end up oversupplied, Smoke said.

    “We pore over the data every week, and we have seen an uptick with inventory levels with one data point. We’re on the verge of starting to see some of the challenges alleviating. We could very quickly go from being undersupplied to oversupplied. I think we are close to the end.”

    The U.S. economy is resilient, and the recent federal CHIPS and Science Act will succeed at giving the U.S. chip market options and alternatives if China turns negative, Smoke added.  

    “There is no major recovery in sight on the supply drought. We have fairly flat growth in dealer consignment volume," said Tom Kontos, chief economist at ADESA. - Photo: IARA

    “There is no major recovery in sight on the supply drought. We have fairly flat growth in dealer consignment volume,” said Tom Kontos, chief economist at ADESA.

    Photo: IARA

    Wholesale Used Vehicle Inventories Moving Up

    Tom Kontos elaborated on Smoke’s economic picture and numbers, pointing out that the wholesale used vehicle supply situation has maintained inventories at higher levels than during the peak pandemic period.

    In detailing the market, Kontos reported:

    • There has been a 33% or more decline in sales at physical auctions, based on Auction Net data. Sales have not returned to pre-pandemic levels of supply by any means.
    • Commercial, rental, manufacturer and captive supply has been down 60% since pre-pandemic, while dealer consignment level has declined 25% and the commercial consignment volume, 60%.
    • Fleet sales, hit early in pandemic, are now seeing more allocation, especially I rental cars which have the shortest half-life. Less fleet volume is recycling its way through wholesale channels than what was seen pre-pandemic.
    • “Used vehicle supply will be in semi-drought conditions for a few more years,” Kontos said.
    • New rental fleet sales remain low, but there has been a slight uptick in off-rental volumes.
    • New commercial fleet sales have been relatively steady, and off-fleet volumes are increasing.
    • Manufacturers are supplying a steady flow into commercial fleets.
    • A rise in subprime delinquencies suggests more vehicle repos may be forthcoming. “We’re seeing more repos of late from manufacturers’ captives,” Kontos said.
    • “There is no major recovery in sight on the supply drought. We have fairly flat growth in dealer consignment volume.”
    • Dealer consignment is likely to hold steady at decreased levels.
    • Wild card: Off lease volume reaching the wholesale market has been depressed of late. Those may grow in 2023 and beyond, as these leases were written after the pandemic effects on wholesale values were already happening.
    Dr. Alex Yurchenko, chief data science officer at Black Book, predicts it will take years for the used vehicle wholesale market to return to a full normal. - Photo: IARA

    Dr. Alex Yurchenko, chief data science officer at Black Book, predicts it will take years for the used vehicle wholesale market to return to a full normal.

    Photo: IARA

    A Long Return to Normal

    Alex Yurchenko added that wholesale vehicle prices are declining but remain above pre-COVID levels for the foreseeable future. They are still 80% above pre-Covid prices. “It will take years to return to normal levels.”

    “We are on a roller coaster for week-over-week wholesale price changes,” Yurchenko said. “Consumers are pausing on buying used vehicles.”

    He shared some key stats on used vehicles:

    • Consumer confidence is correlated with gas prices, but still at record 30- to 40-year lows.
    • Fluctuations in vehicle pricing indicate a lot of uncertainty in the market. Numbers show a wide range of appreciation and depreciation rates among different vehicle segments.
    • Used vehicle depreciation so far is15% for 2022, compared to 28.7% appreciation in 2021, but will be more normal this year. However, “we’re not going back to pre-COVID levels anytime soon.”
    • Yurchenko surmised that vehicle values will stay elevated for at least several years with a shortage of used vehicle supply near-term. Rental and fleet returns will stay at lower levels in the next three to four years.
    • In a more positive sign, average retention of three-year-old electric vehicles appear to be loosening. With manufacturers expected to produce a much wider mix of models coming into the market, he estimated 71% retention in 2022 and 53% in 2025, up from 43% in 2021.

    Originally posted on Vehicle Remarketing

    For GREAT deals on used vehicles check out Overstock Vehicles TODAY!
  • 2022 BMW X4 M Competition Review & Test Drive

    2022 bmw x4 m competition

    In today’s automotive landscape, SUVs and compact crossovers tend to be highly sought-after vehicles over coupes and sedans. BMW’s X3 and X4 compact crossovers have benefited from the popularity of such vehicles and on the performance edge of things the latest X4 M has risen to become quite the sleeper with its stunning performance that many didn’t see coming in the realm of BMW “M” Motorsport vehicles.

    The 2022 BMW X4 M Competition is a star within the brand that is eager to take on sports cars that are nearly twice its price and do it all while offering the versatility of a crossover. However, that versatility of a crossover is somewhat cut short by the X4 M’s unique coupe-like styling from its sloping rear roof design that’s taken the X3 and fundamentally sloped the rear roof area. While such a style may be an acquired taste for some, you must respect the boldness of automakers who want their crossovers to stand out more – and THIS X4 M Competition test vehicle adorned in its Sao Paulo Yellow paint does just that, stand out in a crowd. Thankfully, BMW retained the good looks of the respected kidney grille up front matching the darkened trim, lower grille, staggered 20-inch wheels, and large rear defuser area. The X4 M Competition looks the part of a menacing crossover and I think it’s the best the X4 has ever looked.

    2022 bmw x4 m competition side

    Performance and Driving Character

    After all the years of experiencing BMW vehicles, I’m not at all surprised to jump in one and it immediately feels faster than BMW originally claims. The new BMW X4 M Competition is no different, which has an additional 30 horsepower and 16 lb-ft of torque over the non-Competition X4 M giving its turbocharged inline-6-cylinder engine 503 horsepower and 479 lb-ft of torque, which feels like much more. With the direct and snappy-shifting ZF-sourced 8-speed automatic transmission set in its fastest and most aggressive shift mode and launch control enacted by disabling the stability and traction control, the X4 M Competition is able to hit 60 mph in just 3.3 seconds. Yes, that’s very fast and much quicker than BMW estimates. The xDrive all-wheel-drive system tends to bias its power to the rear but don’t be surprised that the front wheels break loose a bit when launching.

    2022 bmw x4 m competition rear

    As the shifts fire off nearly like some of the best dual-clutch transmissions around, the X4 M Competition lurches forward with authority and hardly any drama. Put the unique crossover into a sharp turn and it grips like it’s nearly on rails feeling almost like a well-tuned sports coupe. There’s a hit of turbo lag from a stop when you don’t use the launch mode, which wants you to allow the engine to build boost to avoid that uninspiring turbo lag.

    Where I found fault with the new X4 M Competition is its twitchy feeling in the ride quality and steering sharpness, which is somewhat different from the non-Competition X4 M. While the steering is quite sharp it tends to be followed up with unwanted twitches in body movements where it feels like the front wheels need a toe-in adjustment. The suspension aided by adaptive dampers that have three settings that can be dialed up through a few different ways, one being through one of the two M steering wheel buttons, tends to be lax in its reaction to dips and rises in the road. Basically, the suspension is initially stiff but creates somewhat of a lofty feeling at times jarring any rear passengers. I feel BMW could easily do some retuning here and “fix” such a feeling.

    2022 bmw x4 m competition wheel tire

    The BMW X4 M Competition nearly defies the laws of physics where you feel as if you can push it harder and harder to inch up to its limit. Even the braking from large 15.6-inch cross-drilled rotors clamped down by 4-piston calipers up front and 14.6-inch discs with single-piston calipers out back is strong and confident inspiring. In being part of the true M vehicle pedigree, the X4 M Competition is poised and ready for track duties just like its closely-matched M3/M4 siblings – only the X4 M Comp has a bit more weight and stature to contend with but adds the extra room and dash or practicality in a singular package.

    2022 bmw x4 m competition gauge cluster

    Fuel Economy

    The BMW X4 M Competition, just like many other BMWs, has a consistent rate of burning fuel when you’re not pushing it hard. Doing such, you’ll expect to easily match the EPA estimates of 15 mpg city, 20 mpg highway, and 17 mpg combined. On the highway, you may even best the figure to get nearly 21.5 mpg as I did traveling at the posted 70 mph speed limit.

    Interior and Tech

    The cabin of the X4 M Competition is most of what you find in many other current BMW vehicles before the recent iDrive update. Using the iDrive 7 setup and the welcomed touchscreen and redundancy of controls is mostly a simple endeavor with a short learning curve. I can respect what BMW has done in their very last iteration of iDrive 7 before moving to the new iDrive 8 setup that I recently encountered in my BMW i4 review.

    There’s wireless Apple CarPlay and Android Auto integration along with the traditional simple controls that many have grown to enjoy in modern BMW vehicles. Otherwise, the BMW X4 M Competition adds some unique heated front seats that have good bolster support and the proper power adjustments including a versatile lumbar adjustment. The rear seating area is small and there’s not much headroom mostly due to the sloping rear roofline, which also contributes to a smaller rear window. Rearward visibility is still “okay” but not as good as you find in platforming sharing X3/X3M. The same goes for cargo space being cut a little short from the slopping rear accessed by a power liftgate.

    Safety

    There’s a decent list of expected active safety features that come standard in the X4 M Competition (blind-spot monitors, front collision warning with emergency braking, and a high-resolution 360-degree camera system). There’s the option of adding the adaptive cruise control setup, and lane departure warning/mitigation, which was not equipped in my test vehicle.

    2022 bmw x4 m competition 360 camera

    Price

    The BMW X4 M starts at $73,400 before any fees or options. The pay-to-play factor comes into the picture with the BMW X4 M Competition where the pricing tends to easily crest $80 with just a couple of option packages whereas my nicely equipped test vehicle comes to a price of $86,145. For a compact luxury-performance crossover, the X4 M Competition is among the best in its class in my opinion with shocking performance that leads the pack.