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Jan 25
2023
Tesla has aggressively dropped prices since the first of the year. We talk about the ripple effects it will have on the auto industry.

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Tesla aggressively drops prices. What's that mean for the auto industry as a whole?

THE CORVETTE WAS ALREADY A SPORTS CAR FOR OLD FARTS..
(that doesn't stop me from wanting one) So Chevy went & made a Corvette for even older farts with the E-Ray? Reading between the lines, GM gets a lot of old guys who want to spend as much money as possible on a new Corvette. And up until this point, that’s led them straight into a badass, uncomfortable, RWD Z06 or ZR1 that wants to vaporize you. But most old-timers don’t have the heart for that kind of monster on their daily trip to wherever they go for eggs, crispy bacon, and black coffee in the morning. So Chevy decided to offer these geezers an equally expensive Corvette, but with more civility. Still bonkers-fast when you put the pedal down, but a lot more predictable with all-wheel-drive. Give ‘em something they can handle, while still taking all their money, and while implementing some new ‘electrified tech’ into a flagship performance model. Basically… an Audi jk. It’s actually kind of brilliant. 

THE THEORY BEHIND THE CORVETTE E-RAY…
Is to use a hybrid system to power the front wheels, while letting the C8’s mid-engine V8 power the rear wheels. And then give it a really cringy name & embroider it all over dad hats & floor mats. But here’s the good part: The battery in the E-Ray is tiny. It only weighs about 100lbs, and can recharge itself almost instantly, either with power from regenerative braking, or power created from the V8. Chevy says, “It’s all about power in, power out.” Meaning, the battery doesn’t need to be big, because it doesn’t store power. It’s essentially just a hot-potato to grab & release that extra 160hp to the front wheels. 

With the additional 160hp, the E-Ray generates a total of 655hp, making an AWD Corvette missile that absolutely rips off the line & sticks in corners. So bottom line: It gives gramps the ultimate acceleration he paid for… while hopefully keeping him between the ditches. I will say, even though the E-Ray doesn’t tickle my britches personally – it is encouraging to see GM implement EV tech in a performance-oriented way. And to do so with a smaller, lighter battery approach. It points to a more cost-effective, sustainable middle-ground for future models perhaps. A way to do more with less – GM is thinking like racers here. In other words, not like they were thinking when they built the 9,000lb Hummer EV with a 3,000lb battery. 

EVEN THOUGH THE E-RAY IS IMPRESSIVE FROM AN ENGINEERING STANDPOINT…
Is it what the Corvette nation really wanted? Chevy promised a sub-$60,000 price on the C8. They lied. Now it’s been 3-4 years, and you still don’t really see Corvettes at dealerships, or even on the road too much. Not like you did with previous generations. The Corvette was always America’s sports car. And now Chevy builds an E-Ray at over 100k? Who is this for exactly? It seems like Corvette is straying off-course from its fanbase. There were only about 34,000 Corvettes sold last year.

Corvette E Ray

AS A WHOLE, the auto industry has gotten really generic, numb, dumb, autonomous, disengaging, sanitized, boring, forgettable, gimmicky, etc, etc. If you love to drive, & you love connecting to the moment... it's irritating to say the least. 
BUT.... glass-half-full... I'll be darn if there's not some really good driver's cars WITH MANUAL TRANSMISSIONS that have been slipping into the lineups... one at a time. We've been hearing about 'em trickle in. But dang - step back for a second, and there's now at least a dozen viable, potent, and (theoretically) affordable driver's cars with manual transmission to choose from. The driver's market is actually getting strong again! 
In this podcast, we go through some of the new cars that we think deserve some credit & attention.

What is the Automotive Industry doing Right these Days?

Mike knows a little bit about financial matters, so I kinda wanted to get his opinion on what the stock market is saying about Carvana & Tesla these days. How did Carvana get in this situation? Has Elon Musk's attention shifted away from Tesla to Twitter? And/or... is Tesla losing their sweet-spot now that the EV market has exploded & every other car manufacturer is competing for battery resources?

Carvana & Tesla Stonks

In mid-September, Ford announced that all Ford dealerships had until Halloween to decide if they wanted to become ‘EV Certified’. The giant stipulation was – it would cost each Ford dealer roughly $500,000 or $1,200,000… depending on if they wanted to be Tier-1 or Tier-2 certified. And a huge part of that cost is to build-out a public charging infrastructure at the dealership. In other words, if a Ford dealer wants to play along & be ‘Model E Certified‘, they must now install a complex public charging network at their location. Since there are Ford dealerships in practically every town in America, this is Ford’s clever scheme to quickly build-out a national Ford charging network… at their dealer’s expense. And Ford’s ultimatum/leverage to dealers is this: Tier-1 Elite Certified dealers (@ $1,200,000) get the largest EV allotment. Tier-2 Certification ($500,000) gets to sell some EVs. And if a dealer does not get certified & contribute to the charging infrastructure, they do not get to sell any new Ford EVs. 

OBVIOUSLY THIS WENT OVER LIKE A FART IN AN ELEVATOR. 
Those are huge expenses to throw on dealers. Especially considering that real-world consumer demand for EVs is low… at least outside of metro areas. For instance, only about 1% of all cars in the US are currently EV, and almost 40% of those are stuffed into California. Ford sold ~63,000 F150s in July 2022, versus ~2,000 Lightnings. 

Plus, despite the endless media praise, reality is, Ford’s current crop of EVs have been riddled with inventory shortages, soaring prices, delivery delays & sale-stopping recalls. So how many Ford EVs are even going to be available for Ford dealerships to sell? It seems that the new industry standard is to keep supply just under demand. Ford CEO, Jim Farley already announced this past summer that Ford ultimately aims to sell new EVs direct-to-consumer like Tesla… and that dealerships could be involved but that “the standards are going to be brutal”. Ford is also mandating that their dealers sell EVs at fixed pricing with less profit margin… again to try & model themselves after Tesla. Essentially in the Ford EV business model, the dealer is just a point-of-pickup for the customer who buys online. And the dealer basically gets a small fee to take delivery & fluff the customer. All of this points to: Why on earth would Ford dealers (outside of California & a few other metro cities) make that $500,000-$1,200,000 investment? 

AND HERE’S WHERE IT GETS INTERESTING…
Because what happens if/when the dealerships unite & decide NOT to make that investment? In other words, what if the Ford dealers tell Ford to pound sand… because… that’s kind of what’s happening here. How will Ford pivot & sell EVs if that’s the case? Honestly, all signs point to the fact that Ford wishes to eliminate dealers for the EV sales-model anyway (like Tesla). But one of Ford’s strongest attributes is their nationw

THE DEADLINE IS HERE – who's gonna sell Ford's EVs?

GM came up in the news a couple times this week. 
First - for backtracking on EVs a lil bit. GM has been very ambitious (aka virtue signal-ish) over the past year or so that they're 'all-in' on EVs... even stating that they would be fully EV by 2035. But at an investor day just before Thanksgiving, GM President Mark Reuss said that they have no intention of rushing to kill-off internal combustion in their trucks & other large SUVs. 
Second - GM is launching 'Corvette' as its own brand... introducing two new Corvettes: an EV crossover Corvette, and an EV 4-door Corvette. Soooo.... we talk about that.

GM backpedaling EVs & launching a Corvette crossover

Sometime low-key earlier this year, the EPA (Environmental Protection Agency) stopped Ebay Motors from selling any automotive products that could be deemed as ’emissions defeating’. That includes aftermarket hardware & software: Tuners, race exhausts, standalone ECUs, air/fuel management devices, etc. Ebay had virtually no choice in the matter, it was an ultimatum: Stop selling these products…. or face fines of ~$4,800 for any part sold from January 2020. Considering Ebay’s substantial foothold in the marketplace as a used & NEW retailer, this could be one of the biggest blows to the automotive aftermarket ever. And it went off without hardly a peep. 

GUYS – THE EPA HAS TURNED UP THE HEAT TO INTOLERABLE.
This has gone way past a genuine concern for our planet, and this is now about door-kicking, control, & submission. And after all the dust has settled, don’t be fooled, this is NOT about the environment (repeat that as many times as necessary). This is about control, power, & forced obedience. And it ends with big government elites controlling transportation for their own profit & power. 

The EPA has a bafflingly accurate name for it, it’s called the National Compliance Initiative. Make no mistake, this is what is oppression looks like. Comply… or else. 

NICHE MODIFIED VEHICLES ARE NOT THE GLOBAL CAUSE OF CLIMATE CHANGE.
Not even close. In many cases, they’re secondary recreational vehicles. And in fact – they produce no emissions whatsoever unless they’re being used. Meanwhile – a new EV creates a GIANT carbon footprint before it ever travels its first mile. But the government is not pursuing the truth or common sense here, because again, this is not about the planet. This is a witch-hunt. And it’s happening because car culture is a voice of knowledge & reasoning in the midst a political EV agenda that is contingent on mass ignorance & adaptation. Give that a minute to sink in. 

LIFE, LIBERTY, AND THE PURSUIT OF HAPPINESS… THE EPA IS ATTACKING YOUR FREEDOMS.
And they are using ‘the environment’ as a fabricated basis to do it. 

The serious question is: Are we too late to stop it? The EPA & big government is hurting legitimate automotive aftermarket businesses in this country. Crushing entrepreneurs. Stepping in & interfering with businesses & customers. Squeezing business owners. And making it needlessly difficult for them to 'legally' provide for their families… and/or the families of their employees. Where does this stop? Who’s next on the EPA’s list?

The EPA’s Sweetheart Deal with eBay

IF YOU SLICED-UP THE BATTERY PACK OF JUST ONE HUMMER EV…
You’d probably have enough juice to power 5 little blast-to-drive commuter EVs. That would be a lot less strain on the earth… and isn’t that what this is all about? The answer is no. See if the EV movement was still really about being green, we’d be approaching it a lot differently. A lot less materialistically. Green has become a status symbol – point blank. 

DRIVERS WOULDN’T CARE SO MUCH ABOUT SCREEN SIZE, AUTOMATIC HI-BEAMS, ADAPTIVE CRUISE CONTROL, & AUTONOMY…
If they actually LOOKED FORWARD to driving the cars they owned. And maybe then – we wouldn’t need 2,000 chips for every EV. Maybe then – we could get these new vehicles priced less than a mortgage. And then EVs might start to become a justifiable, affordable solution. But c’mon – what kind of place would America be if we weren’t flexing 6+ year auto loans at $750+ per month to drive a pansy-ass forgettable SUV that will become obsolete as soon as its tech does?

This is all a mess of our own creation… because we consume more & more & more. And then, we look for technology to be the savior of our overconsumption. We let politicians build their campaigns on it, and pander to the bleeding-heart hypocrites. Maybe it’s common sense & personal responsibility that we really need. 

“BUT SMALL CARS ARE NOT SAFE.” 
You’re damn right they’re not safe… not in today’s environment. A mouse is safe in a grassy field amongst other mice. But it’s no longer safe in that same field when there’s a stampede of elephants. Today’s vehicles have gotten obese, heavy, and disengaging. Drivers use the roadways as their own personal mobile office. We’re being forced to share lanes with Tesla drivers in full self-drive. Look around at any red-light & see how many drivers are completely inthralled in their own bluetooth conversations, virtually unaware of their surroundings. And to top it off – knowing that a stop sign means stop… is about all you need to get your driver’s license in America & drive a 5,000+lb vehicle. So where do we draw the line on safety? How do we define it? 

BECAUSE YOU KNOW WHAT’S REALLY NOT SAFE?
Replacing competency with technology… like we’re doing. Requiring less of people, and requiring more from sensors… like we’re doing. Catering to the lowest common denominator… like we’re doing. Castrating our freedoms in the name of safety over & over again… like we’re doing. Keep people safe by keeping them uninformed, incapable & technology dependent – that’s the plan. And that mindset is now infiltrating the automotive industry at a wildfire pace. No driver left behind. And it all leads to more tech, more sensors, more regulations, more government control, more problems, higher prices, more delays, dumber people, and lower skills/abilities. 

You wanna keep people safe? Teach these idiots how to drive, or don’t issue them a li

Let’s Make EV’s That Make Sense!

This podcast didn't have one specific topic. But rather, everyday it seems we hear about more absolutely dumb & ridiculous news coming from the automotive industry... and it's just hard to watch lol. Here are a couple abbreviated stories from this past week. If you want the full articles, just check out our site (s3mag.com) or download our free app (S3 Magazine). 

1) A brand new Hummer EV broke down in the middle of a highway during rush hour. It was wet outside, and GM’s all-terrain EV went totally dead. And unfortunately for GM, the brand new Hummer EV belongs to some well-known YouTubers in the truck world – The Fast Lane Truck. The Hummer threw a steering code & I believe a TPMS code. Basically things started acting glitchy. And when the concerned owner, Roman Mica, tried to restart it at a traffic light (as you restart your computer when it starts acting dumb)… it totally shut down. Makes you wonder....
•EVs are more software than machine; essentially a rolling computer.
•So when something fails, EVs behave more like a laptop than something mechanical.
•Not even the hood would pop open; the entire 9,000lb vehicle was bricked in the middle of a highway.
•Any vehicle can fail. But with ICE you at least have a chance to fix it (and/or limp it home) if you’re mechanically inclined.
•The new Hummer is GM’s flagship EV. Its software filters to other GM EV models.

2) The NTSB & NYC's governor are dumb & they wanna make everyone else dumb too. With the help of New York City of course, the NTSB is testing "speed limiting technology" in some of NYC’s fleet vehicles… and lobbying that this technology goes into every new consumer vehicle. IT WORKS EXACTLY HOW YOU THINK IT WOULD: YOUR VEHICLE WILL NOT LET YOU SPEED.
Simple as that. Your pedal goes dead when the vehicle reaches the posted speed limit, and you are not in control. LADIES & GENTLEMEN, YOU NEED TO UNDERSTAND THIS LOUD & CLEAR: These people are morons. They’re clowns, and they’re clueless. AND – they think they can do a better job of running your life than you can. That should seriously concern you.

Speed-limiters will not eliminate accidents, they will just create new stupider ones. You know why?

BECAUSE SPEED ISN’T THE REAL PROBLEM…
Bad drivers are the real problem. Distracted drivers are the real problem. A lack of driver training in this country is a real problem. And bad roadways & traffic issues are a very notable issue. But let’s not acknowledge the real problems huh? Instead – let’s bury our heads even further up our technology-dependent asses & create even more incapable drivers.

3) PSA: Be careful not to back into a tree & crack a taillight when you’re off-roading your big-ass new Hummer EV. Because apparently each taillight will set you back over $3,000. Now don’t get me wrong, the taillights on the Hummer EV look absolutely killer! But…
WITH THE DIRECTION THE AUTOMOTIVE INDUSTRY IS MOVING AS A WH

The auto industry has lost their marbles

Mike posted a video of him & his son listening to the race cars at Petit Lemans during night practice (they live close enough to the track to hear the cars). And some commenter said - they won't stop until they take ALL our internal combustion cars & close ALL the racetracks. 
Something along the lines of, "He will violate all our cars"?? I dunno that got weird. 
But it's a glaring example that some people in this country fail to understand how freedom works. It also a concerning glimpse into the mindset of some of these people on the extreme ends of the EV/regulation spectrum.

EV Activists Cross the Line

We brought our good buddy, Ben Battles, to come on the podcast & describe the vibe of Slammedenuff in Gatlinburg TN. Ben has shot (& written) NUMEROUS features for S3 MAG over the years. He's got a really good/informative TikTok channel @thegamblercivic ...so be sure to check that out. If you're in the market, Ben can also source unique/eclectic vehicles, especially of the JDM variety. Follow him on IG at @battles.digital

As for Gatlinburg, man it's exploded! It's become the biggest 'stancy' event in the country?? But man, have some of these over-cambered cars just gone full blown AIDS. So inbred they can barely move. We discuss.

Slammedenuff Gatlinburg

Looking at what happened during this bootleg-version of H2Oi in Wildwood, it's glaringly obvious that we have a severe culture problem in this country... and now it's spilling over into car culture. What we saw in Wildwood was not ‘a little disruptive,’ it was totally destructive. There’s a difference.

Historically, hot-rodding culture has always been a bit disruptive, right?

But... there's always been some level of charm to the disobedience. Meaning, there was always enough morality, good judgement, and overall intelligence to respectfully ride-that-line between bad boy & good guy. That’s the sweet spot. 

What we’re seeing now though, is truly ugly. 

It’s not car culture anymore. It’s… trash people in trash cars doing trash things. In these cases, 'the car' is just an excuse for destruction. See - this is gonna sting a little bit, but let’s look at where we’re at. Automotive culture already has a target on its back. The current administration wants to push an EV agenda - hard. And the kind of ignorance we saw at Wildwood gives them the silver platter to wake-the-woke & vilify car culture as a whole. People... died.

Let’s look at how this scenario always plays out: When a criminal commits a crime these days… we blame law enforcement. When a psychopath shoots up a school, we blame guns. Americans never stand up anymore, take accountability, and blame our diseased modern American culture that's at the root of all of this. And when I say 'modern American culture', I'm talking about the one that glamorizes ignorance, violence, sin, & the breakdown of family. So WHAT DO YOU THINK is gonna happen when these takeover events turn into riots & start getting innocent people killed? They're gonna blame car culture. And they're going to do it loudly with a broad brush. 

An undeniable part of this infection that is 'the new generation of car culture' - is fallout from the automotive industry abandoning its own traditional/established media.

When I say 'traditional media'... I mean MAGAZINES and CAR SHOWS/EVENTS. Traditional media had the integrity to INSPIRE the culture in a positive, inspirational way. Anyone over 35 knows… that’s what magazines did. Car shows & events used to be hosted by responsible, professional, well-staffed organizers. These types of things built-up the culture; not destroyed it. And what I'm calling 'traditional media' was able to exist, because it was funded by the automotive aftermarket through advertising budgets. In other words, advertising dollars were invested back THROUGH the culture... and it made one hell of a strong culture! 

But about a decade ago...

The automotive industry really started pulling advertising budgets from traditional media (magazines & events), in order to put that budget into their own social media pages. They fixated on becoming their own media. It was a selfish play in regards to the broader strength/health of true car culture. But it was one tha

“H2Oi” Turns Fatal

Our opinion - Ford nailed it. The S650 Mustang seems to be everything it needs to be. Enough to offset the 'soft side of Ford' that we've been seeing too much of lately with all the EV stuff. It's given the Ford-loyal enthusiasts something to be proud of.

One argument - is that Ford already ruined the Mustang by using the name on that sad 4-door electric crossover... the Mach E. But the other side of the coin is... they could have just ruined the coupe & convertible TOO... but they didn't. They could have axed the Mustang like Chevy is axing the Camaro & Dodge is axing the Charger/Challenger... but they didn't. And that has restored some of my faith in Ford. This was the right move.

I've always said that when Ford gets out of their own way... they can really do badass exciting things. I'd like to see more of that... and less brown-nosing shareholders & administrations. 

ENGINE..
The base model Mustang is still a 2.3 Ecoboost. Which really is a fun car to drive in its own right, But the Ecoboost will always live in the shadow of the GT. So let talk about the GT: The 4th-gen Coyote V8 now has twin intakes & throttle bodies! Badass. Ford says it's the most powerful Coyote yet, but they did not release horsepower numbers on there GT to my knowledge.

But what we should really be celebrating here - is the fact that we can still get the next generation Mustang with a ground-pounding V8 and a bonerific 6-speed transmission!

Dark Horse: The Dark Horse will make 500... normally aspirated... horsepower! Just saying the name silences the room and causes a bead of sweat run down your butt cheek. This is what America does; this is what we bring to the automotive world! We can make the Mach Es, the Volts, & the Bolts... and all that other sissy sh*t. But when it comes down to it... THIS is what America does. In the same month that Mopar killed their Scat Packs & Hell Cats... Ford unleashes a Dark Horse. Let that sink in. The Dark Horse is the future we grew up for. The Mach E is the cop car from Demolition Man. Soon... you're gonna have to choose a side. 

DESIGN...
As mentioned, I think the S650 Mustang design is exactly where it needs to be. It's more chiseled, which is the design trend of the times. And when you look at it, especially from the side profile, you can tell that Ford is trying to give the Mustang a broader, more global appeal. Which is also what they did when they released the 2015+ model.

The S650 has a shorter rear overhang than the current Mustang. And again, from that side profile, the short overhang behind those rear wheels (combined with the side rear windows), gave it Nissan Z vibes to me. At first, that seemed a little wrong. I love Nissan Zs, but not on a Mustang lol. But - the original '65 Mustang ALSO had that short/stubby rear end. So in that regard, I guess it works. And the more I look at it (especially from the rear corner angle), the more it grows on me quickly. Lastly - it's got thicc hips - gotta l

Ford Introduces the S650 Mustang

There's no official 'news topic' here. Just a regular conversation. It hit me the other day... what happened to all the golden era-Hondas?! For like 20+ years, those things ran the streets pretty commonly. But they've really vanished over the last few years or so. I guess they finally aged out. And that got me thinking... this current 'bags/fitment/camber' trend in youth car-culture has been around for a looooong time now. It's long in the tooth. And how much longer, until that trend (and the people who defined it) really starts to age out as well? And what/who will replace it? Car culture is in a weird place with the youth these days. Car prices are high, and cars have become less interesting. What, if anything, will be next?

Trends in Youth Car Culture

We try to keep the podcasts to about 30 minutes or so. This one ran long, so we broke it up into 2 parts. This is Part 2, and Part 1 was release a day prior. 
We also kinda went down different rabbit holes... but it's all part of the broader topic of the 'rapidly changing automotive industry'.

Buick Buys Out Dealers Part 2

Buick is offering an option to dealerships... to buy them out. Essentially, Buick is saying that the 'transition to EV' is going to be extremely tough on dealerships. Dealers will have to make major investments into new equipment, & training. And there will be more & more online sales. Plus, EVs require less routine maintenance from the dealer's service department. We talk about the positives & negatives as we see it. Buick is not a major brand in our enthusiast world by any means. But this does show/foreshadow the climate that dealerships will be facing as EVs come into the marketplace & consumers move to online, rather then in-person sales. It seems as if manufacturers want to follow the Tesla model, and move away from dealers to more of a direct-to-comsumer buying experience. 

*We try to keep these podcast to roughly 30 minutes. But this podcast went long, so we broke it up into 2 parts. 66.1 & 66.2 (which will be realize a day after 66.1)

Buick Buys Out Dealers - 66.1

A new Corvette Z06 for $90,000 over MSRP?! The new Nissan Z selling for $130,000?! What the hell is happening with these dealerships?

More Insane Markups By Car Dealerships

Dodge has officially unveiled their first EV Muscle Car, the Charger Daytona SRT concept. Let’s talk about it!

Dodge E-Muscle Released!

Dodge is finally giving in and going the EV route, but they plan to give the Charger and Challenger a proper send off first. Lots of collector cars will be built in 2023, so keep you eyes up and your wallet open!

Dodge is Calling Last Call on the Challenger & Charger

We discuss a very sad and serious topic today. A motorcyclist was killed by a Tesla on Autopilot. Who is to blame and how do we avoid this kind of tragedy in the future?

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