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Honda and Nissan Discuss a Merger
Andrew Evans
December 18, 2024
Good morning, SpeedBites readers! Among today’s highlights is the news that two of Japan’s biggest car manufacturers are discussing a merger as Honda and Nissan seek a surprise combining of forces, while all eyes in F1 focus on the question of who’ll be driving for Red Bull in 2025 and beyond. Porsche might be struggling to get an all-electric Boxster to production, but it’s also been designing a spaceship for the next title in celebrated studio Naughty Dog’s next big game. As always, if you enjoy our daily dose of automotive excitement, don't forget to share SpeedBites with your fellow car enthusiasts!
AUTOMOTIVE INDUSTRY NEWS
Honda and Nissan are initiating discussions about a potential merger, driven by the need to enhance competitiveness in the rapidly evolving automotive market, particularly against Chinese brands. While both companies may seek to maintain some independence, a memorandum of understanding is reportedly in progress, with an official announcement expected soon.
Honda has announced that the Prelude will return to the US market in late 2025, featuring a two-motor hybrid powertrain and a new driving mode called Honda S+ Shift, but it is expected to lack a manual transmission. While the production model is anticipated to resemble the concept version revealed earlier, details about the interior, pricing, and official specifications remain undisclosed.
The current-generation Porsche 718, which includes the gasoline-powered Boxster and Cayman, will be discontinued globally by mid-2024 due to cybersecurity regulations and production challenges related to its all-electric successor. Reports indicate that the development of the electric 718 is significantly delayed, with potential gaps between the end of internal combustion engine production and the launch of the new electric model, alongside broader concerns about Porsche's electric vehicle strategy and declining demand in key markets.
Former Stellantis CEO Carlos Tavares, in his first interview since resigning, reiterated his belief that a unified vision is essential for managing the company, which he felt was lacking among the board members. He expressed concerns about European automakers' competitiveness against China in the electric vehicle market, describing the situation as a Darwinian challenge and noting that Stellantis faces internal criticism regarding its recent strategic decisions and declining sales.
The U.S. Department of Energy has finalized a $9.63 billion loan to BlueOval SK, a collaboration between Ford and SK On, to build three EV battery plants in Kentucky and Tennessee, aiming to enhance domestic electric vehicle production. This loan, the largest from the Advanced Technology Vehicles Manufacturing program, is part of broader federal efforts to support the U.S. EV industry amid increasing competition and potential policy shifts following the upcoming transition to a new administration.
Kei car owners in the U.S. are facing challenges in registering their vehicles, with states like Rhode Island, Georgia, Maine, and Massachusetts rejecting them, and Colorado considering a proposal to ban their registration outright. The American Association of Motor Vehicle Administrators (AMVAA) is influencing these efforts, citing safety and regulatory concerns, while enthusiasts argue that many classic cars with similar shortcomings are still legally registered.
In 2024, the National Highway Traffic Safety Administration (NHTSA) announced a new rule requiring all new vehicles to include rear seat belt warnings and stricter front seat monitoring, effective September 1, 2026. This regulation aims to enhance safety by addressing the high percentage of vehicle occupant fatalities in 2022 linked to unbuckled seat belts and is expected to save approximately 50 lives and prevent nearly 400 injuries each year.
Several Tesla owners who recently took delivery of vehicles equipped with the AP4 hardware are experiencing significant issues, including malfunctioning cameras and GPS, as well as non-functional emergency braking features. Reports indicate that Tesla service centers are facing delays in addressing these problems, with some technicians suggesting that a software update may be attempted before any hardware replacements are made, despite concerns about safety and functionality.
Cupra is developing a new line of vehicles that will diverge from its current SUV and crossover focus, with plans to unveil the first model next year. CEO Wayne Griffiths emphasized the need for "iconic" designs that transcend traditional segments, mentioning an all-electric off-road buggy concept and the brand's cautious approach to investments as it prepares to enter the U.S. market by the end of the decade.
MOTORSPORT
Max Verstappen confirmed that he had an "honest" conversation with Mercedes team principal Toto Wolff, acknowledging the team's interest in him as a potential driver. Despite the discussions, Verstappen remains committed to Red Bull, viewing it as a family and expressing loyalty to the team amid ongoing rumors regarding his future.
Yuki Tsunoda recently participated in an F1 test with Red Bull, noting distinct differences in team dynamics compared to his previous experience with AlphaTauri. He observed that while both teams foster a positive atmosphere, Red Bull's engineering approach is more thorough and detail-oriented, with a stronger emphasis on feedback during the development process.
Toto Wolff and Helmut Marko have developed a closer relationship following the death of Red Bull co-founder Dietrich Mateschitz in October 2022, despite their teams being fierce rivals. Both leaders reflected on the challenges of the 2021 season, acknowledging their shared Austrian heritage and mutual respect, which has helped them navigate their competitive dynamic.
Speculation regarding Sergio Perez's future at Red Bull has intensified following a lackluster 2024 season, where he finished eighth and did not secure a race win. His long-time sponsor, Telmex, has hinted at a potential departure through social media posts reflecting on his four-year tenure with the team, raising questions about his continuation in Formula 1.
Max Verstappen and George Russell had a brief conversation after the Abu Dhabi Grand Prix, following their public disagreements stemming from a qualifying incident in Qatar. Verstappen expressed optimism about moving forward in the next racing season, while also sharing his thoughts on parenting as he anticipates the arrival of his first child.
Carlos Sainz has officially departed from Ferrari after a successful stint that included two race victories, as he prepares to join Williams for the 2024 F1 season. His farewell at Fiorano featured a special send-off with his father, Carlos Sainz Sr., who also drove a Ferrari F1 car as part of the occasion.
Jak Crawford, currently a reserve driver for Aston Martin, expressed interest in a potential race seat with Cadillac's future Formula 1 team, which is set to join the grid in 2026, should an opportunity arise. As the highest-ranked American driver in Formula 2, Crawford feels confident in his ability to compete in F1, citing his recent test experience and the success of fellow F2 drivers who have transitioned to the sport.
Genesis is considering the development of a GT3 car but will prioritize its LMDh program, set to debut in the FIA World Endurance Championship in 2026, followed by participation in the IMSA WeatherTech SportsCar Championship in 2027. Currently, the brand lacks suitable road cars for a GT3 program, as its focus remains on establishing a successful presence in prototype racing before exploring further motorsport opportunities.
Stunt driver and W Series competitor Jessica Hawkins has tested a NASCAR Cup Car at Charlotte, in her latest jump between racing disciplines thanks to driving simulators. Hawkins, an Aston Martin F1 ambassador, has leveraged simulators as well as her real-world racing experience to drive in myriad different vehicles, impressing in the virtual environment to earn seat time in the real thing — including an F1 test, the British GT Championship, and now NASCAR — highlighting how sims can give driver low-cost and low-risk familiarization across the motorsport spectrum.
Timo Glock will return to the DTM in 2025, driving a McLaren 720S GT3 EVO for Dorr Motorsport, marking his first full season in the series since 2021. He replaces Clemens Schmid and aims to leverage his experience to help the team achieve top ten finishes and potentially podiums in the upcoming season.
CURIOSITIES
The trailer for Naughty Dog's upcoming game, Intergalactic: The Heretic Prophet, features a spaceship designed by Porsche for the title. Dubbed the Porsche 984 Tempest NDX, the ship appears to be the home of the bounty-hunting protagonist, Jordan A. Mun, with the game currently in development for the PlayStation 5 and featuring a soundtrack by Trent Reznor and Atticus Ross.
The Supervan 4.2, an electric, all-wheel drive vehicle with 2040 horsepower, has added a Top Gear Test Track record to its notable victories at the Pikes Peak and Goodwood hillclimbs. Designed to emphasize aerodynamics and downforce, this time attack commercial vehicle — the latest in a line of Ford Supervans dating back to 1971 — sits behind only two other cars on the famous figure-8 loop, both of which are open-wheel formula machines.
General Motors plans to renovate three towers of the Renaissance Center in Detroit and demolish two others, contingent on receiving financial support from the city and state. Critics, including local urbanists and media outlets, argue that GM's request for up to $350 million in taxpayer funds is unwarranted given the company's substantial profits and suggest that the threat of full demolition is an attempt to coerce public approval for its plans.
A collection of salvage yards in the Emirates Industrial City in Sharjah is home to a wide variety of damaged and disused exotic and performance cars, including models from Ferrari, McLaren, and Rolls-Royce. These yards sell parts from irreparable vehicles, commonly imported from other countries where liability for such parts is higher, to enthusiasts and restorers throughout the Middle East, illustrating the lifecycle of high-end automobiles as they transition from luxury items to sources of spare parts.
School districts are facing significant challenges in recruiting school bus drivers, leading to service closures, with some areas resorting to using the National Guard to transport students. In response, several ride-sharing apps like Piggyback Network, HopSkipDrive, and Kango have emerged as alternatives, offering paid carpooling services with safety measures, although driver compensation remains low compared to industry standards.
BYD, China's leading electric vehicle manufacturer, is expanding into humanoid robotics and has launched a global recruitment program to attract top talent for its Embodied Intelligence Research Team, which was established in 2022. This initiative aligns with BYD's broader strategy to invest 100 billion yuan ($13.7 billion) in advancing AI and smart technology, while the company continues to achieve record sales in new-energy vehicles.
The Bond Street Sale 2024, hosted by Bonhams, provided a unique experience for attendees, contrasting sharply with the chaotic atmosphere of recent motor shows. The auction featured a range of vehicles, with the Bugatti Type 35A selling for $700,000, highlighting the exclusive nature of the event amidst London's Mayfair backdrop.
The ECD Auto Design "Project Night Prowler D110" is a bespoke Land Rover 110 built from the ground up, featuring a modernized frame, a 430-hp LS3 engine, and extensive customization options, culminating in a price of over $264,000. While it offers impressive off-road capabilities and a unique aesthetic, the vehicle's driving experience may require adjustment due to its classic design elements and less refined features compared to modern SUVs.
Liberty Walk, originally known for its kei car bodykits, has an impressive portfolio of works now, highlighted by a heavily modified R35 GT-R that has come up for sale. The GT-R features a widebody kit, upgraded suspension, and engine enhancements, emphasizing its appeal as both a showpiece and a potential road trip vehicle.
Recent data from local authorities and National Highways indicates that the percentage of major “A”-roads in England classified as 'red' remains at four percent in 2024, while minor “B” and “C”-roads are unchanged at seven percent. However, the number of 'amber' roads in the network, which are likely to need maintenance soon, has increased from 24 to 27 percent since 2020, highlighting a growing concern about the overall condition of the country’s roads.
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