BLOWING PAST THE 100 GRAND BAR. – Rants
Editor’s Notice: Peter’s column talks about industry pricing, entire with an update from James “Jimmy” Fu and S.L. “Sonny” King as the Fu-King Motors boys offer with source issues like every person else. “On The Desk” features Mercedes-Benz legend Rudolph Uhlenaut’s wonderful 1955 300 SLR Coupe, which recently transformed hands for the highest rate in automotive heritage. Peter talks about “America’s Cathedral of Speed” – the Indianapolis Motor Speedway – in Fumes. And appear for substantial coverage in both equally Fumes and The Line of the run-up to Sunday’s running of the Indianapolis 500. -WG
By Peter M. DeLorenzo
Detroit. Offered that almost everything is properly and actually out of sorts suitable now (you imply flat-out crazy, suitable? -WG) or improved however, “Over Beneath Sideways Down” as The Yardbirds once famously sang, how did we get there at this stage? Yes, there is the chip “thing,” the lingering provide chain “thing,” the shortage of everything “thing.” And then there’s the burgeoning pricing “thing” as in, how did we get there at this level in time in the auto enterprise, in which $60,000 is deemed a mid-priced auto, and $100,000+ is now the acknowledged cost of admission for the higher stop of the market place?
Certainly, I get it, time marches on and all that, but was not it much less than a 10 years in the past when automobiles priced at $100,000 (and up) had been reserved for the Aston Martins, Bentleys, Ferraris, Lamborghinis and other exotica of the vehicle world?
Now, the common cost of a loaded luxury pickup truck from Chevy, Ford, GMC or Ram is approaching $75,000. If you get a loaded Tremendous Duty model of 1 of these pickup vans, you are very easily pushing 6 figures, and much more. Or how about the $75,000 Ford Broncos and V8-powered 392 Jeep Wranglers?
The story is even far more so for luxurious SUVs in this market. Let us experience it, if a producer does not have a quality SUV which is 100 Grand or over, it cannot be viewed as a severe player. The list of players in that arena features Audi, BMW, Cadillac, Land Rover, Lincoln and Mercedes-Benz, and which is just for starters.
But then all over again, that 100 Grand plateau is swiftly becoming a stepping stone predicament, as tricky as that is to comprehend, due to the fact the record of gamers with SUVs approaching $200,000 and higher than is rising exponentially. Lamborghini, Land Rover, Mercedes-Benz and Porsche are filling that house, with Aston Martin, Rolls-Royce and shortly-to-be Ferrari (ugh) blowing previous $200,000 and pushing $300,000+. As in, are you frickin’ kidding me?
Welcome to the new normal, evidently. Sure, I have noticed all of the statistics – the growth of own wealth and disposable earnings, along with the need of affluent people to say “WTF?” and spend massive dollars on their particular transportation alternatives to “cocoon” all through and after the pandemic (you know, that pandemic, which hardly ever seems to go absent). And I applaud individuals rediscovering the strategy of hitting the road and embracing the thought of street visits they by no means took back again in the day, simply because hitting the highway is generally a good matter.
But 100 Grand turning out to be the new threshold for luxurious automobile companies from below on out is however a minor challenging to swallow. Was not it just a couple of many years back when prices in the $80,000 assortment had been eye-opening? Sure, it was. But then yet again turning back the clock isn’t going to occur both. It seems just a instant back when the concept of 100 Grand staying the value of entry for tremendous premium luxury was radically steep. Now? It’s experience like a quaint notion at this stage, due to the fact the market has blown past that.
Is it sustainable? That is a distinct dialogue solely. We are evidently teetering on the edge of a recessionary period, introduced on by the ongoing offer chain chaos and lingering COVID nightmare. Not to point out the systemic pressures being fueled by the “Grand Transition” to BEVs. A giant “We’ll See” as we like to say about right here, but I never see prices rolling back again whenever quickly, or at any time again for that make any difference.
I have been immersed in all of this due to the fact I am in deep talks with my friends Mr. James “Jimmy” Fu and Mr. S. L. “Sonny” King, as they try out to decide pricing for their new product line.
As longtime AE viewers may possibly recall from previous columns, Jimmy and Sonny have operated in the shadows of the gigantic Chinese industrial device for a long time. But for audience new to AE, I will gladly shed some mild on these two flamboyant figures so they can have a extra entire photograph of who they are.
Mr. Fu begun producing design cars in the late 70s, and it has now been confirmed that he controls each and every toymaking problem in China by means of a labyrinthian community of mom-and-pop factories and a number of other significant conglomerates that he lords about. Mr. King grew to become companions with Mr. Fu soon after initially giving the elaborate wheels and meticulously comprehensive tires on Mr. Fu’s model autos. The two have been associates for a very long time in simple fact, they’re getting into their fifth decade collectively now.
I to start with acquired to know Mr. Fu and Mr. King immediately after they approached me at the Los Angeles Automobile Exhibit many years ago. Apparently, they had stumbled upon Autoextremist.com after they first grew to become acquainted with the Web, and they regaled me with the reality that they equally figured out English by owning my ‘Rants’ columns translated for them.
When I 1st achieved them, it turned into an uproarious come upon as they blurted out some of my patented phrases that they had acquired phonetically, like ‘notgonnahappen.com,’ ‘halle-frickin’-luja’ and ‘the Respond to to the Query that Unquestionably No One particular is Asking.’ (How they learned that past one continues to be a mystery to me.)
Mr. Fu and Mr. King have remained in close call with me ever considering the fact that. As I have gotten to know Jimmy and Sonny, their frenetic pace and boundless vitality in no way cease to amaze me. The Zoom phone calls I get at 3:00 p.m. my time are typically booze-crammed stream-of-consciousness rants by Jimmy with Sonny yelling items over his shoulder, accompanied by fashionable product types dancing to disco music in the track record at their secretive Shanghai lair. And their appetites look to be even additional boundless. In point, Jimmy is continue to fond of aspiring feminine pop stars, though Sonny is a very generous sponsor of a feminine gymnastic academy.
As you could envision, with their insatiable appetites for, nicely, anything, their underground garage is in a frequent state of flux. Let’s just say they go by way of about a half-dozen cars for each year, every single. Quickly American muscle cars are overflowing in their fleet, which is an enthusiast’s cornucopia of finest hits, including a mélange of Challengers (just about every modified to supply 1100HP) an authentic “narrow-hipped” 427 street Cobra a L88 Corvette two new Corvette C8s (one particular black, a person white) and a pair of customized-built Willys Gasser replicas from the 60s powered by race-organized Chevy 502 massive-blocks reserved for terrorizing the neighbors in the center of the night. I have recognized that their fondness for Bourbon has progressed from Knob Creek via Basil Hayden’s to now Woodford Reserve, but that appears to alter about each and every a few months or so.
One big improve for Jimmy and Sonny is that they bought a person of their twin Gulfstream G650s. Considering the fact that they certainly loved their jets, this is a substantial deal. Jimmy spelled out that “We had to slash again, enterprise is not so great appropriate now. (They kept Jimmy’s, which is Jet Black and sold Sonny’s, which was Chaparral White.)
The final time I talked with Jimmy and Sonny, I was ready to piece alongside one another some salient specifics of the Fu-King Motors long term product portfolio (though it took a few, prolonged, Woodford Reserve-fueled Zoom phone calls to do so, with substantially yelling – usually the yelling – and the incessant disco pop participating in LOUDLY in the qualifications). Considering the fact that then, I have been counseling Jimmy and Sunny about the pricing of their approaching products.
So, as ideal as I can explain to, listed here is the newest timeline – anything has been pushed again many decades (“Chip Hell,” as Jimmy and Sonny said in unison) – and the projected pricing for what Fu-King Motors has coming:
2025 (pushed again from 2021): The extensive-awaited debut of the Fu-King Gargantuan, the 6-wheeled, all-electric SUV is developed to embarrass “anything else in the market,” according to Jimmy. Flaunting some extraordinary numbers: 2000HP 10,000 lbs., electrical move ladders (“not actions, ladders,” Jimmy insists) and “a search that will humiliate all that other crap out there,” included Sonny. When I asked about the rate, Jimmy and Sonny answered in unison: “Enough to make grown guys cry!” So, what, precisely, is “enough to make grown men cry?” Jimmy laughed heartily at my hand-wringing above the new $100,000 threshold and explained – with not a nanosecond’s hesitation – that the Gargantuan would have a base cost of $599,999. Gulp. (But, as Sonny pointed out, that’s a $100,000 rate minimize from exactly where they ended up.)
2025 (pushed back from 2021): Another highly anticipated debut – The Fu-King Motors KickBoxer – is the boys’ reply to the Jeep Wrangler and Ford Bronco with “unequaled” off-road general performance. Boasting a carbon-fiber unibody and a kaleidoscope of diverse variations, together with a pickup and one particular cryptically referred to as the “RumRunner Edition” (“it can conceal forty gallons of Bourbon!” Sonny chimed in), the KickBoxer will be driven by an all-aluminum, 2.-liter, gas-injected, Twin-Turbo, flat eight-cylinder motor that delivers 700HP. When asked if this could perhaps be construed as overkill, Sonny immediately replied: “We will introduce our competitors to the concept of getting their asses kicked!” So, how considerably will it expense to kick your neighbors’ asses in their precious Wranglers and Broncos? Sonny, who was the driving power powering this system, priced it at $199,000 declaring, “There is so a great deal technological innovation in this beast that fanatics will beg to get on the waiting around checklist. You want to make a splash at cars and trucks and coffee? We obtained your splash appropriate here!” (Hoping to counsel the boys about pricing self-discipline has proved to be a futile exercise.)
2026 (I’ll believe this one particular when I see it): The all-electrical semi-truck that seems eerily like the Bison advanced prolonged-haul trucking principle that GM Styling designed for the 1964 World’s Truthful is “a definite go” for late in ’26, according to Jimmy. When I was shown pics of the notion, I thought they experienced resurrected the designers who did the first Bison, it looked so near to the original (see beneath). But this truck will be a hydrogen gasoline cell-driven electric weighty truck with a array of “700+ miles,” in accordance to Sonny. The identify? “Convoy.” (It looks that Jimmy and Sonny are huge supporters of the original “Smokey and The Bandit” motion picture and the full C.B. radio period in the U.S.) How considerably? $600,000, all-in.
The Bison weighty truck principle from GM Styling was built for the 1964 World’s Fair in New York.
2030 (If it happens at all): It’s very clear that the progress of the Fu-King Motors supercar has been fraught with problems from the beginning. That it has taken its toll on Jimmy and Sonny is apparent, as when I mention it their normal exuberant inclinations switch decidedly glum. To start with envisioned as a substantial-performance, hydrogen fuel cell-powered electric hypercar, the equipment – code named “Bandini” – has been reimagined as a BEV aimed to eclipse Gordon Murray’s T.50. Claimed to have 1+2 seating and a control bodyweight of 1900 lbs., Jimmy and Sunny are continue to mum – and decidedly glum – on any even further information and facts, which is strange for them, though I know they are constantly bickering about the specifics. Which usually means you can bet that even the 2030 time-body is a pipedream and not even close to occurring. And they haven’t stopped bickering very long sufficient to even speak about the pricing still. Though from what I’ve observed so significantly, it will charge $4 million, least.
When I asked about items further than 2030, the boys mimicked what I generally say, chiming in once more in unison, “It’s a giant we’ll see!” And, when asked if they had any options to import their products and solutions to the U.S., the remedy was a resounding, “Never!” Asked why, they answered once again in unison, “Too much bullshit, too substantially aggravation. We’re acquiring as well outdated for this shit!”
At that point all I could say was, “I concur.”
And I am reminded of all those immortal words of The Wicked Witch of the West:
“Oh, what a globe! What a environment!”
What a planet, in truth.
And that is the Superior-Octane Truth for this week.