It was Enzo Ferrari himself who famously said, “Gotta give the peeps what they need.” Or maybe it was Public Enemy. Regardless of who’s behind that saying, Ferrari did exactly that recently by finally—finally—releasing an SUV, the V12 Purosangue. And wouldn’t you know it’s already a giant home run for the legendary Italian brand?
It’s Friday, Autopians, and congratulations to you all for making it there. Let’s close out the end of the week by talking about the Purosangue, Carvana’s surprising recent win, some tough news for EV truck startup Lordstown Motors, and the unusual tensions between the United Auto Workers union and President Biden.
In a way, you could say that I too am giving you, my “peeps,” what you “need.” I aim to please.
More Like Puro$$$angue, Am I Right Folks
Here’s a fun fact about me: I don’t actually hate the Purosangue. I mean, I don’t have many strong thoughts about Ferrari, period, since its activities are generally aimed far outside my own tax bracket. But the idea of a “Ferrari SUV” doesn’t bug me all that much, especially not this one. It looks as good as it possibly could, it has a giant, honking, naturally aspirated V12 engine, it sounds like the gates of hell are opening up behind it, and it’s not like other automakers haven’t proven this concept before. When was the last time you heard anybody claim the Cayenne wasn’t a “real Porsche”? Exactly.
Some people accused Ferrari of “selling out” by going with such a mass-market, high-volume car that at least somewhat goes against its sports car ethos; I would merely argue that given all the gaudy Ferrari watches, t-shirts, handbags, hats and anti-virus software out there, selling out was already baked into the business model.
And, gosh, wouldn’t you know the Purosangue is already a huge hit with wealth-enjoyers who have been craving a Ferrari people-mover since the 2000s. Here’s Reuters on Ferrari’s Q1 results, which predict an even stronger end to the year based on the strength of the SUV. Which hasn’t even been delivered yet, mind you:
Ferrari (RACE.MI) on Thursday produced a bigger than expected 27% rise in first-quarter core profit and forecast a strong second quarter, when deliveries start for its new Purosangue model, for which waiting lists extend to 2026.
The Italian luxury sportscar maker said it was reopening orders for the Purosangue four-door, four-seater, which had been suspended due to initial “unprecedented” demand.
CEO Benedetto Vigna said Ferrari’s overall order book covered production until the end of 2025. But those customers now ordering the 390,000 euro ($430,000) petrol-powered 12-cylinder Purosangue will have to wait until 2026 to receive it.
I’ll add this tidbit from an interview with Yahoo! Finance:
Vigna: At the beginning when we launched the cars, we were not expecting such strong, let’s say, reaction from the clients. So we had to put a little bit a stop to organize ourselves so that we could reopen properly. So there is no change in our strategy.
This thing is due to be a major hit and I would not be shocked if Ferrari just leans into it and offers more models like this. We do expect a hybrid version to drop eventually, and you know that’d be a blast too.
Carvana May Not Be Dead Yet
We’ve spent a good deal of Internet-Ink around here covering the many troubles of Carvana, the used-car startup famous for its vending machine-like buildings across the country. But poor Carvana scaled up at just the wrong time, amid the global pandemic and its subsequent used-car shortage. Things looked bleak for a while. We even made our own plans for repurposing the big buildings too.
But now, there’s actually signs of life from Carvana, if you can believe it: predictions of a surprise profit for Q2. Here’s Reuters again, and emphasis mine:
Shares of Carvana Co (CVNA.N) rose 33% before the bell on Friday after the online used-car retailer forecast a surprise core profit for the second quarter, offering some relief to investors amid solvency concerns around the company.
Carvana shares plunged 98% last year after the company struggled to offload used cars purchased at higher prices during the pandemic as demand fell on affordability concerns.
“I think the major headwinds that have faced the business over the year are largely subsiding,” Chief Executive Officer Ernest Garcia said on a call with analysts on Thursday after the company reported a smaller-than-expected first-quarter loss.
Lordstown Runs Out Of Cash, Will Suspend Truck Production Soon
The comments, part of an unscheduled Thursday quarterly earnings filing, come three days after the Ohio-based company said it may go bankrupt if a previously announced deal with contract manufacturer Hon Hai Technology Group. or Foxconn, falls through.
“To date, we have not identified a strategic partner for the Endurance. To the extent we do not identify such a partner, we anticipate that production of the Endurance will cease in the near future,” the once-promising company said in the filing.
Foxconn, a Taiwanese maker of Apple iPhones and other products, last month alleged that Lordstown was in breach of an investment deal because its stock had fallen under $1 per share for 30 consecutive trading days, triggering a delisting notice from NASDAQ.
Lordstown said discussions with Foxconn continue but they have not reached an agreement. The automaker also cited an “extremely limzited ability to raise capital in the current market environment” as an ongoing issue.
Amazingly, some deliveries have already happened even though production had to be paused in the first part of this year, but the number of trucks delivered has to be incredibly small. The company said it had only made 31 trucks by late February.
CNBC says Lordstown only had cash and cash equivalents of just $108.1 million at the end of March, so unfortunately, things do not look great here.
Probably the real winner here is Foxconn, which I assume would keep that Ohio plant to bolster its U.S. manufacturing base. That area of Ohio has been an extremely depressed one since GM slowly began winding down that plant (it made small cars like the Cavalier, Cobalt and Cruze, so you can just guess how that went) and I’d love to see the people there get some kind of win for their community.
A UAW Endorsement For Biden? Not So Fast, Jack
It would seem like a UAW endorsement for President Biden’s reelection campaign is a no-brainer, right? Even though its membership went heavily for Trump in the last couple of elections, union leadership is pretty consistently solid for the Democrats. But a Biden endorsement might be a tougher get this time around, the New York Times reports.
That’s because the UAW has a new president, Shawn Fain, and he’s coming off a lot tougher and a lot more militant than many recent leaders. I wrote about this guy for us previously. Members seem sick of losing plants to overseas operations, widespread corruption and generally just getting rolled all of the time.
But there’s a bigger fight brewing soon over the likely electric future of the auto industry. EVs need less labor and fewer parts to build, so it’s possible transitioning away from ICE cars will mean far fewer jobs in the future. Germany, Italy and Japan are all freaking out about this, too. It’s not just an American thing.
So now, the Times reports, a UAW endorsement of Biden may not be a sure bet. Fain and other leaders said in a memo that they’re withholding a Biden endorsement for now due to “our concerns with the electric vehicle transition” that the administration is heavily incentivizing:
The memo underscores how some of Mr. Biden’s boldest moves to fight climate change, which animate his liberal base, could at the same time weaken his political support among another crucial constituency. The U.A.W. has shrunk in size in recent decades, but it still counts about 400,000 active members, with a robust presence in Michigan, a critical battleground state for Democrats.
In April, the Biden administration proposed the nation’s most ambitious climate regulations yet, which would ensure that two-thirds of new passenger cars are all-electric by 2032 — up from just 5.8 percent today. The rules, if enacted, could sharply lower planet-warming pollution from vehicle tailpipes, the nation’s largest source of greenhouse emissions. But they come with costs for autoworkers, because it takes fewer than half the laborers to assemble an all-electric vehicle as it does to build a gasoline-powered car.
In the memo, Mr. Fain provided “talking points” for members about why the union was not immediately lining up behind Mr. Biden, writing that if companies received federal subsidies, then workers “must be compensated with top wages and benefits.”
“The EV transition is at serious risk of becoming a race to the bottom,” the memo reads, referring to electric vehicles. “We want to see national leadership have our back on this before we make any commitments.”
This hardly means the UAW is about to endorse Donald Trump, or Ron DeSantis, or whoever else ends up scoring the GOP nomination—it’s still very early days in the sure-to-be-exhausting 2024 presidential race. And Fain’s memo even says “Another Donald Trump presidency would be a disaster.”
The goal here instead is to bring the Biden Administration to the table for some sort of labor concessions or guarantees as the EV race accelerates. Who knows what that could be, but the Bipartisan Infrastructure Act and Inflation Reduction Act are already spurring tens of thousands of battery-related manufacturing jobs in America. The UAW is going to want some security here.
After all, Fain’s right about the job situation for EVs vs. ICE cars. And it does put Democrats and other progressives in a tough spot: do they come down on the side of environmentalism or labor? Or is there a way to take care of both?
Your Turn
You’re taking a nice morning stroll on the National Mall and a green ’67 Corvette pulls up beside you. It’s President Joe Biden, whom you recognize from the news.
“Now, listen here, Jack,” he says to you, inexplicably. “I got a lot going on lately. Do Uncle Joe a solid and figure out this UAW labor situation for me? We can’t skimp on the electric vehicles—and that new GMC Hummer will tear your face off like you wouldn’t believe, Mack—but I can’t afford to lose those union voters. Get to work.”
He tosses you the keys to the Corvette and runs away. You notice he can move pretty quickly for a dude in his 80s.
Congratulations. You are now the Biden Administration’s automotive labor czar. You have to hopefully save the homegrown American auto manufacturing base, and keep the UAW happy to save your boss’s ass when he inevitably runs against Trump again next year, but you also have to help deliver on the (probably) electric future. What do you do?
Ok you UAW pussies. Stop your bitching and take a look at your real situation. The bastards you work for import a huge number of models. And have done so for decades. Now get off my lawn. (your friend) Joe Biden.
Who gives a shit about an endorsement? If you can’t figure out who to vote for without an endorsement from a union, newspaper or whoever than maybe don’t vote. Do some research, look at voting records and make your own choice.
{ opens up @s on Twitter }
Buncha nerds who are wrong come at me trying to hate the Cayenne, a good parsh that deserves no haterade. NERDS who are WRONG.
At least the Purosangue is a real Ferrari and not a rebadged Durango LOL
Ferrari should’ve used the Hellcat or even Hellephant engine in something 😀
Even if they made Purosangues in a Fiat/Alfa/Maserati factory, that would work. Or they could even use Belvidere, IL. Premium union labor for their premium car.
Lordstown was always a scam. They should sell teh factory to Rivian. I hope Rivian succeeds and doesn’t go under. I like them better than Tesla because they actually behave like a real car company run by adults, and they made the first EV viable for widespread commercial use.
Biden busted the railroad union, so no wonder the UAW doesn’t like him.
But then again, the UAW is stupid. You can be pro-union and anti-UAW. EVen other unions don’t like them. Have you seen their childish parking lots? So insecure and jealous!
If I was in charge of saving them, I would tell them to
MAKE BETTER CARS!!!!!!!!!!!!!!!!!
MAKE CARS PEOPLE ACTUALLY WANT!!!!!!!!!!!!
Bring back the Focus and Fiesta, with real automatic transmissions. Ford switched back to torque converters after they stopped selling them in the US. They fucking sabotaged them because they don’t want to sell anything other than the F150. I would also make them sell the Figo up here, too. They would keep making the Transit Connect.
Bring back small cars. The Chevy Sail, Cavalier, and Spark. Bring over the Mexican and Middle East market Neon.
They could also rebadge some Hondas and Toyotas.
Toyota Vios: Chevy Prizm
Honda Amaze/Brio: Dodge Attitude
Make them compose their executive leadership boards of half engineers, half labor. Go on Linkedin and other forums and search for people laid off or let go from Honda and Toyota and recruit the shit out of them.
Tell Jim Farley and Bill Ford to stop behaving like Chris Farley and Rob Ford.
Tell the UAW to drop the stupid childish parking policy, and to also eliminate the mandate that they get paid the same nationwide: different areas have different cost of living, and thus differing pay is justified. Tell them they don’t have to defend every single shitty employee. Tell them that management learing their jobs isn;t a threat to them, but it would actually make them better managers if they know what goes into making cars.
To make those things happen to the automobile market (which I totally agree with), you would need three things:
Of course, even thinking about something like that would have Americans calling for your tarred and feathered corpse, while UAW thinking is as short term as that of their Detroit bosses. So I expect some jingoism and perhaps a trade barrier or two instead of anything meaningful.
Signing on to the UNECE standards will automatically solve most of the problems.
Raising the gas tax is more effective than CAFE, especially when it’s laden with loopholes like the stupid footprint shit that just made cars bigger rather than more efficient.
For the commercial vehicle thing, require either a CDL or an EIN would go a long way.
Raising the gas tax would devastate the working class who can already not make the ends meet as it is but need a car to get to their 2 jobs.
Raise taxes on expensive vehicles.
“Ferrari should’ve used the Hellcat or even Hellephant engine in something”
I don’t see Ferrari fanatics ever accepting an engine with overhead valves… no matter how great it is, they won’t consider it a real Ferrari.
“Bring back the Focus and Fiesta, with real automatic transmissions. Ford switched back to torque converters after they stopped selling them in the US”
Nah… just bring back the Focus hatchback and the Taurus Sedan… the new Taurus sedan that is sold in China that is actually based on the Fusion platform. One smaller hatchback and one larger sedan… and no product overlap.
Most of their customers don’t give a fuck about any of that shit or the racing heritage lol. Ferrari doesn’t need the customers that would hate on them anyway because for every one of them, there are three who will buy it anyway.
They’re just like ooooooooooooooooooooooooooooooo I have a FERRARI, I’m SOMEBODY!!!!!!!!!!!!!!!!!!!
If the car is fast, it’s fucking fast.
Ferrari could’ve rebadged a Viper, added an automatic transmisison, and doubled the price, and they would’ve sold every single one they could possibly make.
The Urus is a rebadged Touregg made in Slovakia. The Huracan is a rebadged R8.
“Ferrari could’ve rebadged a Viper, added an automatic transmission, and doubled the price, and they would’ve sold every single one they could possibly make.”
This was basically the idea behind the SLS AMG
None of what you mention as a way to save the UAW in your post is controlled by the President or his delegates. You don’t seem to know the purpose and function of a union.
The whole point of the union is to get everyone better pay by negotiating together for the equal pay. And then protecting the employees equally to the best of their ability against management.
(Trust me, in every union there are employees that aren’t defended quite as well as others for various reasons, but that will never be official union policy and it never should be)
Being union means being united, and it also means understanding that nobody is perfect, so you’re also committing to accepting each others’ imperfections, at least to the degree that those flaws don’t harm the union itself.
The Purosangue is probably so popular because it looks like a Mazda CX-30.
We know the truth!
hopefully, it won’t rust like a Mazda does 😛
Ferrari Purosaggurana….?
I think I’ll call it the Ferrari Purolator.
It looks like a Prius but somehow not as good. I don’t know about you but if I were going to buy a bazillion dollar car, I might want it to look a little more distinctive than literally every other car on the road.
My other idea was “Ferrari Printa-da-money”
The Purosangue is neither mass market or high volume, being one of the most expensive cars in Ferrari’s regular production range and only expected to account for 20% of total Ferrari sales volumes.
I think everyone thought they were going to do a Urus rival instead it is a much more expensive car for the super rich to use on a road trip to a ski resort.
Retrain the union members for jobs in the battery plants. Those plants, while heavily automated, still need humans to work on the line.
All those UAW can learn to code! Good enough for coal miners, good enough for UAW members. /s
The Purosangue leaves me absolutely cold. It’s an update of Mr Harrah’s “Jerrari” and, like spinach, I say “to hell with it.” If it pleases the Big Bucks people, so be it. If there was ever going to be a Ferrari in my driveway, it would most likely be a 308 or 348. Or, if I aced the Powerball, maybe a 250GT.
The EV/unions situation looks pretty bleak to me. I can foresee a time when many companies get their underpinnings from Red Star Skateboards in Shanghai (which gets its drive units from The East Is Red Motors in Shenyang) and clap their own bodies on them. That won’t require many workers at the nameplates’ end of the process.
So what to do? Two things: First, pray for E-fuels and the retention of actual automotive production and, second, make unions less of a bonanza for their officers and more responsive to the legitimate needs of the memberships.
I think making the unions less of a bonanza for the leadership is a big part of this. As for the membership, send them to the battery factory. Time to learn how to manufacture something new.
The UAW needs to help create new jobs for their members. Hey Marty, you don’t install pistons anymore. We’ll train you on this machine that winds a million miles of copper for the new motor. Jenny, you don’t have a job installing all those pullies anymore, we’ll train on how to make a heatpumps for these new electric cars.
Unions are supposed to not only protect their members, but also train them as new technology comes out.
I don’t know about that. Could be argued that the ‘Union’ is there for the union. Beyond that they are there to get their members the most pay, benefits and preserve the job. Training is not a job of the union, that’s the company’s department. The union may push the company to provide training.
As far as getting people to change their job, there are a substantial block of UAW that don’t want to change because this is what they know and they have been doing this all their lives. Their family has been building vehicle all their lives, their friends build vehicles, etc., etc. Go tell them to assemble electric motor or battery packs or do anything that does not involve directly building/assembling vehicles and they will buck.
I was in an electrical union in my 20s. We had training days all the time. That was the only way to go from an apprentice to a journeyman. Companies didn’t provide it, your dues did.
For the legacy auto workers only wanting to do what they have done for every, same as their friends and family, well that’s their problem for not wanting to change. Baulk all they want, and sit at home complaining about no job, it’s their choice not to learn something new.
https://en.wikipedia.org/wiki/Who_Moved_My_Cheese%3F
Exactly. It’s harsh to say, but adapt or retire. There are jobs available that aren’t getting filled, do one of those.
First I would wipe the drool from my mouth over the Vette.
The next step is what the UAW needs. Get back to roots and not money for the sake of money. Make sure people get a fair wage, work conditions, benefits.
Then take the Vette and follow the Golden Parachute.
Hold on a second Kristen Lee is actually Fancy Kristen now?!? I did not expect to see her driving a Ferrari when I clicked the link. I haven’t really followed her career since she left the old lighting site but that’s awesome. I’m happy for her.
You know she would be a welcome addition to The Autopian. Although now she might be actually be too fancy for the likes of us.
I’ve read some of her stuff at other sites, and it’s good, but I miss the Fancy Kristen stories.
I enjoyed her writing on the “German lighting site”. It’s good to see that she got out of there and made it to a real news outlet.
I’m not sure I believe this “less parts less labor” nonsense for EVs. Maybe there are less individual mechanical pieces, but all that electronic crap has to be wired up and bug tested.
And I haven’t forgotten how Biden forced the rail industry to keep working despite the strike. That was a huge mistake on his part. But given the political climate we have going into next year, all unions across the US better hope the Rs don’t win, or they’ll be kissing their unions goodbye.
I may have mentioned this on other stories, but it seems like an interesting coincidence that we have a lot of layoffs and prices going up just before next year’s election. Almost makes me think that corporations remember the sweet tax breaks they got under Trump and want to get those again. This is just me spouting nonsense though, pay me no mind on it.
Honestly, my advice for Biden would be “retire.” Just retire! Move aside for a younger candidate to seek reelection in his stead.
Between his age and significant yikeses like his handling of the rail situation, I can’t blame the UAW for withholding an endorsement right now. It’s still early (too early—the perpetual election cycle is exhausting), and Biden should’ve done better on labor issues. Hopefully big unions holding back will force their hands a bit on labor rights. The dems really should do more than just run the lesser evil, for goodness’ sake.
First and foremost let’s call the Purosangue what it is…a hatchback. It’s not an SUV. Wealthy troglodytes eat up the SUV marketing just as much as the normies lining up to buy CUVs do….but at the end of the day they’re just slightly repackaged hatchbacks. For god knows what reason the combination of the words hatch and back seem to arouse some sort of deep rooted insecurity in most buyers (I’d assume because hatchback is synonymous with economy car/cheerful little cars that are NOT INTIMIDATING or MANLY) so manufacturers have to raise them slightly to sell them.
But let’s be real here, they’re hatchbacks. The Purosangue is the ultimate hot hatch. Don’t @ me. Anyway in regards to the UAW stuff all I’m going to say is it would be pretty rad if we had an actual labor party here in the states instead of one “protect the interests of the 1% at all costs and treat workers like subhuman filth while distracting them with culture war nonsense” party and one “protect the interests of the 1% but in a more friendly way while maybe possibly helping workers every now and then but not TOO much” party. But I know that’ll never happen. Happy Friday everyone!
“…it would be pretty rad if we had an actual labor party here in the states instead of one “protect the interests of the 1% at all costs and treat workers like subhuman filth while distracting them with culture war nonsense” party and one “protect the interests of the 1% but in a more friendly way while maybe possibly helping workers every now and then but not TOO much” party.”
You nailed it. It’s easy to forget that the vast majority of policymakers got there because the 1% wanted them there.
An SUV is a lifted Wagon with oversize wheels. A CUV is a lifted hatchback with oversize wheels. I agree that the Purosangue looks like a hatchback. The eye test wins!
Ok, I’m Mr. Manager now. I sit down with the BIG 3 and tell them, “Look, there’s obviously going to be cuts in the labor force as EV’s take less and less parts to make. But you know what we really don’t have right now? Enough chargers. So here’s what we do, for every plant that gets converted to EV manufacturing you must also start building new and remanufactured chargers there too otherwise you ain’t gettin’ shit for tax breaks, capiche? You keep most of the jobs, you help out the infrastructure, and you get to wave the built in the USA flag. Understood? Now get the fuck out of here, I need a sandwich.”
This is an interesting proposal. Seems similar to what Tesla did, and they appear to have the best, most robust charging network out there.
Love it. Make it so.
This is a great proposal. Oh, and negotiate for maintenance contracts, too. We need more chargers that were already installed to work.
Biden also decided to kneecap the rail workers union. I wouldn’t blame any union for withholding an explicit endorsement after he basically union-busted.
The Democrats’ base is no longer union workers (who have already abandoned them). It is upper middle class suburbanites who are upset when their Amazon packages are delayed by stopped trains. His decision was perfectly rational given political realities of the 20s.
I’m just gonna say I disagree. There’s no constructive path beyond that.
If you say so.
The voting patterns of union workers and affluent suburbanites since the rise of Trump are public knowledge, I’m not exactly breaking any news here.
You can disagree with the decision on the merits, but it was clearly a political calculation.
I’m glad to know I’m upper middle class. I wasn’t aware until you told me what category I fall in. Thank you.
Company that sells every unit it manufacturers due to intentional supply constraints sells all of new model.
Water, is it still wet? Footage at 11.
The Flush: contemplate where things are at on a wider scale, allow the existential dread to do it’s thing, find the nearest brown liquor and take that straight to the dome.