German court: SUV driver must pay more than a car for running red light

BERLIN — A German court has ruled that a driver should pay more than the usual fine for running a red light because he was driving a sports utility vehicle. The verdict dated June 3 could set a precedent for similar cases.

In its ruling, published Wednesday, the Frankfurt court ordered the driver to pay 350 euros ($365), almost twice the regular fine of $200 for running a red light. It also imposed a one-month driving ban.

The court argued that the shape of the SUV, with its high, box-like hood, meant the driving infraction posed a greater risk to pedestrians than if the defendant had driven a smaller car. It also took into account the defendant’s previous driving convictions.

The verdict can be appealed.

Source: AutoBlog.com

Ensure a smooth driving experience with these premium power steering fluids

Autoblog is not affiliated with the brands featured in our articles, but when you make a purchase through links on our site we may earn a commission.

Looking for a high-quality power steering fluid for your vehicle? Check out our list of the finest power steering fluids, just for you. If you’re finding it difficult to turn your car’s steering wheel, then it’s about time you get your hands on a reliable power steering fluid. Power steering fluids are designed to lubricate the components of the power steering, making it much easier to turn the wheel and eliminating any annoying and unpleasant sounds that the steering wheel might make when turned.

With so many different types and brands of power steering fluids available on the market, choosing the right one for your vehicle can be quite confusing. To make the choice easier for you, we’ve reviewed the top-performing power steering fluids and also added a buying guide that covers everything you might need to know regarding high-quality power steering fluids. 

Comparing our favorite power steering fluids for 2022

Honda 08206-9002PE Power Steering Fluid: Great pick

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If you’re looking for a power steering fluid that’s not only effective but also comes at a great price, then get your hands on the Honda 08206 power steering fluid. Formulated especially for Honda vehicles, this power steering fluid works exceptionally well with all Honda vehicles. With 0.35 liters of fluid, this pack of three bottles of power steering fluid is sure to last you a while. This power steering fluid has been made to offer advanced protection for your vehicle, and it also reduces any squeaking sounds that the steering wheel might make when it’s turned. This high-quality power steering fluid does the job quickly and easily without damaging your vehicle in any way, and it comes at an affordable price, offering great value for your money.

Pros

  • Affordable price, great value
  • Works with all Honda vehicles
  • Three bottles included

Cons

  • Only suitable for Honda cars

Lubegard 23232 Synthetic Power Steering Fluid: Versatile

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Next up is the Lubeguard 23232 synthetic power steering fluid, another great product that’s suitable for all Asian, North American, and European vehicles. Thanks to its versatility, you can use this power steering fluid for multiple kinds of vehicles in your garage. The fluid helps reduce friction as well as protecting, sealing, and hosing the steering, extending its overall lifespan. This power steering fluid provides great cold- and high-temperature performance and eliminates “morning sickness” stiffness. It’s also great for use in electric hydraulic systems and can help clean sticky pumps and turbines. You get a decent amount of fluid with this choice, and overall this power steering fluid comes at a good price and works effectively in a wide range of vehicles.

Pros

  • Protects, seals and hoses steering
  • Compatible with many vehicles
  • Cleans sticky pumps and turbines

Cons

  • Has an unpleasant smell

Lucas Oil 10008 Power Steering Fluid: Also try

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If you’re in the market for a high-quality power steering fluid that can help improve steering and steering wheel response time, then take a look at the Lucas oil 10008 power steering fluid. Featuring a well-researched, premium formula, this power steering fluid is capable of extending pump life and sealing cylinders, valves, and rack and pinion gears. This power steering fluid is said to be compatible with all power steering systems, making it a great choice for your car, but some customers have reported issues when trying to use it with their Honda vehicles. Each bottle of this power steering fluid contains 32 fluid ounces, and thanks to the fluid’s high-quality components it makes flushing your power steering a breeze.

Pros

  • Well-researched, premium formula
  • Compatible with many power steering systems
  • Easy to use

Cons

    • Not suitable for Honda vehicles

Quicksilver 858075Q01 Power Trim and Steering Fluid: Premium pick

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Made from high-quality ingredients, this Quicksilver power trim and steering fluid offers superior quality performance for your vehicle. This universal hydraulic power steering fluid is compatible with all vehicles and is designed to mix with all hydraulic fluids in steering and power trim systems. This power steering fluid helps protect seals and hoses, preventing oxidation, corrosion, and foaming as well. This power steering fluid comes in a sturdy, easy-to-manage bottle that’s been designed to ensure that no fluid is spilled during use. It’s great for maximizing the performance and life of all power steering units and can be a great way to keep your car running in tip-top shape.

Pros

  • Maximizes power steering’s life and power
  • Good value for money
  • Compatible with all vehicles

Cons

  • More expensive than similar fluids

Prestone AS269 Power Steering Fluid: Great value

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Last but not least, this Prestone power steering fluid features a premium full synthetic formula that’s been designed specifically for Asian vehicles. It consists of anti-wear agents that help extend the life of your power steering, and it also protects against corrosion and foaming, helping to maintain optimal steering performance. This power steering fluid works great in extreme temperatures, guaranteeing ideal performance in both high and low temperatures, and also consists of antioxidants to eliminate sludge formation. Its 100,000-mile fluid life is two times more than competing brands of power steering fluid, allowing you extra use and more time between replacements. Though it’s compatible with all Asian vehicles, it’s ideal for Honda, Acura, Toyota, and Lexus models.

Pros

  • Protects against corrosion 
  • The antioxidant formula for sludge elimination
  • Compatible with all Asian vehicles

Cons

  • Has an unpleasant smell

Buying guide: Power steering fluid

Types of power steering fluids

There are several different types of power steering fluids available in the market, the most popular of which are the following: 

Mineral oil-based

This type of power steering fluid is one of the most affordable options available. Mineral oil-based power steering fluids are often universal and easy to use, and their main job is to lubricate the system.

Silicone-based

Silicone-based power steering fluids are not universal and cost more than the other options. They contain many additives and are made for specific vehicles.

OEM transmission fluid

This type of power steering fluid isn’t universal, and it’s made of a specific formula that only works on a specific type of car. This type of fluid lubricates the system and acts as a coolant, and it’s ideal for sensitive systems. OEM transmission fluid is usually very costly.

Choosing the right power steering fluid

To choose an ideal power steering fluid for your vehicle, keep the following factors in mind:

Versatility

Though the majority of power steering fluids are not versatile, some are more versatile than others and can be used for different vehicles. These kinds of power steering fluids are compatible with all types of steering systems and engines, and if you have more than one kind of vehicle at home then you should look for a power steering fluid that can be used in various vehicles.

Performance

A power steering fluid’s performance determines whether it’s actually worth your money or not. The fluid should be capable of reducing wear, stopping leaks, and more– after a steering fluid flush, you should be able to turn and steer your vehicle much more smoothly. Look for a power steering fluid that’s multipurpose, as these kinds of fluids are ideal.

If you’re shopping online, you can get a better idea about the performance of a specific power steering fluid by checking online ratings and user reviews. This can help you determine the benefits and downsides of the fluid before making the purchase and give you a glimpse into what using the power steering fluid is like firsthand.

Ease of use

Though all you’ll need to do is pour it into your vehicle’s system, it’s still important that you look for a power steering fluid that’s easy to use. Some bottles are very slippery and difficult to manage, and this can result in fluid leaking out of the system. This not only results in fluid wastage but can also damage your vehicle. If you don’t want to damage your vehicle or leave your workstation a mess, then don’t forget to look for this.

Vehicle type

You should ideally pick a power steering fluid that’s specifically made for your vehicle. Since most power steering fluids on the market are not universal, you should get one that’s compatible with your vehicle. Using the wrong steering fluid for your system can damage its components, so before picking a power steering fluid for your car make sure to check the product description.

Working temperature

Power steering fluids work at a specific temperature, so you need to check the working temperature of the fluid before you begin using it. Some fluids work at very high temperatures, others work at low temperatures, and while this won’t cause any damage to your vehicle, it doesn’t offer ideal performance either. For optimal performance, pay attention to the working temperature of the power steering fluid. 

Price

Prices of power steering fluids vary. Some are generally inexpensive, whereas others are made from premium quality materials and cost much more than standard options. The price of the fluid also determines its performance to some extent, so make sure you’re using a high-quality fluid for your vehicle– don’t skimp out and opt for a power steering fluid that’s simply super cheap, as this can cause your vehicle to suffer. 

Remember, the better the quality of the product, the more you’ll need to pay for it. Price is always a factor, but since power steering fluid helps keep your vehicle healthy you should think of it as a long-term investment. 

Quantity

The quantity and size of the bottle help you determine how long the power steering fluid will last you. Power steering fluids are available in different quantities, from single-use bottles to bigger ones that offer multiple uses. Since power steering fluid is something that you’ll undoubtedly need to use now and then,  it’s better to opt for the choice that gives you a decent quantity for future use. 

Lasting power

The lasting power of a power steering fluid is another factor to consider. Some power steering fluids are capable of protecting the system while keeping it lubricated, and these types of fluids usually have a shorter lifespan compared to power steering fluids without protective agents. A good rule of thumb– the longer the lasting power, the longer-lasting and better performance the fluid can offer. 

Purpose

Is a power steering fluid multipurpose, or is it made for a specific purpose? What benefits can it offer your vehicle? What purpose is it specifically designed for? These are some of the questions you should keep in mind when choosing the ideal product for your vehicle. Other than that, avoid choosing any product that claims to work with transmission fluids. Though transmission fluids have similar properties to power steering fluids, you should choose a product that’s specific in its purpose.

Additives

The additives present in a power steering fluid are another important factor that you should consider, as this helps prevent leakage and corrosion. A power steering fluid without high-quality additives would not be as effective as one with these additives, so you should choose a product that comes with solid additives.

Power Steering Fluid FAQs

Q: Can you use any kind of power steering fluid for your car?

You should ideally use the power steering fluid that’s specifically made for your car type. If you can’t find one, look for a universal power steering fluid that’s compatible with all types of vehicles.

Q: Can the wrong power steering fluid damage your car?

Yes, using the wrong power steering fluid can damage the power steering’s sensitive components. You should always use the power steering fluid that’s designed specifically for your vehicle if possible.

Q: How do you know if your car needs power steering fluid?

One of the main symptoms that might indicate the need to use some power steering fluid is if you’re finding it difficult to turn the steering wheel. If you have to put in a lot of effort to turn the wheel, or if it makes loud sounds, then it’s time to get your hands on a high-quality power steering fluid.

Source: AutoBlog.com

Nissan Titan’s days likely numbered

Rumor has it the Nissan Titan is nearing the end of the line. A source told Automotive News (sub. req’d) that no replacement is planned for the truck originally introduced in 2003 to take on the Big 3 in the half-ton segment. Despite serious improvements in its second generation, it simply hasn’t caught on with many U.S. truck buyers. 

Sales of Nissan’s full-size pickup have dropped precipitously in recent years, from a high of nearly 53,000 annual sales immediately after its most recent redesign in 2017, to just over 27,000 units in 2021; Toyota managed to sell nearly 90,000 lame-duck Tundras in the same time period. For context, Ford sold 49,000 F-Series pickups in May of this year alone

Nissan hasn’t officially said one way or the other whether the Titan will be replaced, but given its abysmal sales performance and Nissan’s recent investment in a heavily overhauled Frontier, it seems likely that the current Titan will be the last. That doesn’t mean it’s necessarily in immediate danger of being discontinued, mind you. AN‘s source says it could be as soon as 2024 or 2025, but only Nissan knows what volume will sustain ongoing production. It could soldier on for several more years before ultimately biting the dust. 

Related Video

Source: AutoBlog.com

First Jaguar C-Type Continuation ready for delivery, and you can still buy one

Jaguar’s XK120-C is known by its far more famous name, C-Type, known for winning Le Mans twice, and known for being the first car equipped with disc brakes to win a race in international competition. That latter victory happened on June 29, 1952, at the sports car race held ahead of the Formula II Grand Prix at Reims, France, with Sir Stirling Moss at the wheel. Today marking the 70th anniversary of that win, Jaguar has chosen it to announce the first C-Type Continuation is ready for delivery.

This is one of eight continuation C-Types the English automaker announced in January 2021, all of them built to similar specification as the 1953 C-Type that earned the model’s second win at La Sarthe, meaning a 3.4-liter, 220-horsepower straight-six sporting three Weber carbs and disc brakes at the four corners. This one is finished in Pastel Green paint with Suede Green seats, recalling the car Moss raced in Reims the year before.

The Continuations are being built at the Jaguar Classic Works in Coventry, each needing 3,000 hours to complete due to using the same build techniques that went into creating the original cars. After the build, Classics engineers put each example through 250-mile shakedown. Once the run is complete, Jaguar said it planned to host a motorsports-themed celebration for the octet. Owners can enjoy plenty of other track days as well, the Continuations being approved by the FIA to run in all FIA Historic events. Owners won’t need to worry about seeing their car everywhere, either, since the C-Type is a rarity even with these additions; Jaguar only built 53 of the original.

Seems an undisclosed number of C-Type Continuations are still available to purchase. If visuals can sway any prospective buyers, Jaguar created a configurator showcasing the 12 exterior colors, eight leather hues, and two roundels that can be optioned. The carmaker hasn’t mentioned pricing publicly, but it’s thought to be north of seven figures. 

Source: AutoBlog.com

New NHTSA chief: Agency will scrutinize auto-driver technology

WASHINGTON — The new head of the government’s road safety agency says it will intensify efforts to understand the risks posed by automated vehicle technology, so it can decide what regulations may be necessary to protect drivers, passengers and pedestrians.

In an interview Wednesday, Steven Cliff, who was confirmed last month as head of the National Highway Traffic Safety Administration, said the agency is assessing crash data recently reported by automakers and tech companies.

Any new regulations NHTSA may impose would fill what critics say is an urgent need to address the growing use of driver assisted systems on U.S. roads. The systems have been linked to crashes involving deaths and serious injuries, though they also have enormous potential to prevent crashes. There are no federal regulations that directly cover either self-driving vehicles or those with partially automated driver-assist systems such as Tesla’s Autopilot.

Before developing any new federal standards, Cliff said, NHTSA wants to better understand how driver-assist and autonomous technology should perform.

Cliff spoke Wednesday to The Associated Press in his first on-the-record interview since being confirmed by the Senate.

He said that when he first joined the agency in February 2021, he was surprised to discover that NHTSA had no data on automated vehicle crashes. As a result, Cliff said, he challenged the agency to require such reporting. Last month, NHTSA released data from July 2021 to May, concluding that automated vehicles were involved in nearly 400 crashes.

Cliff cautioned that while he believes federal standards are needed to regulate driver assisted technology, he wants to avoid rushing to embrace new rules that might potentially end up compromising safety.

“Any time we put a regulation on the books, we have to define not only what standard that technology needs to be held to, but we need to have an objective way to measure the performance of the system to ensure that it actually complies with the regulation,” he said from his office at the U.S. Department of Transportation’s headquarters in Washington.

The agency, Cliff said, is also working on performance standards for automatic emergency braking, which it plans to require on all new passenger vehicles and heavy trucks. The braking systems, which can detect and stop for pedestrians, other vehicles and obstacles, show great potential to help stem rising traffic deaths in the U.S., he said.

NHTSA, he said, will set metrics for how the braking systems detect objects to ensure that the systems respond appropriately.

“That’s part of any of the standards that we put in place,” he said.

Cliff declined to discuss any details of regulations that might be forthcoming.

“It’s important for us to take the data that comes from those incidents, better understand it in an engineering context,” he said. “I think it’s important to move quickly but not so fast that we’re getting it wrong.”

Of the nearly 400 crashes that were reported by manufacturers, Teslas were involved in more than all other automakers combined. But Cliff noted that Tesla has driver assisted technology operating on nearly all of its roughly 830,000 vehicles on U.S. roads, which makes neat comparisons to other automakers difficult. The company also provides nearly instantaneous wireless reporting of crashes, so it receives data faster than other automakers.

Since Cliff’s arrival, the agency has stepped up enforcement efforts aimed at Tesla, including a push for a dozen recalls since the start of 2021. The agency is investigating why Teslas working on Autopilot seem to crash into emergency vehicles parked along freeways. And it has received more than 750 consumer complaints involving Teslas breaking unexpectedly for no apparent reason.

At the same time, Cliff added, Tesla has been cooperative with NHTSA since his arrival at the agency.

“I think we work well with them,” he said, “and when we have identified that there are risks, they’ve taken action, and that’s appropriate.”

Cliff, whose background is in chemistry and air pollution regulation with little auto safety experience, takes over the agency at a critical time. The agency has estimated that nearly 43,000 people were killed on U.S. roads last year, the highest such figure in 16 years.

Safety advocates say NHTSA has become more aggressive in regulating automakers since Cliff’s arrival from the California Air Resources Board, the state’s pollution regulator. Cliff, who first joined the California board in 2008 as an air pollution specialist, rose to become its deputy executive officer. Years earlier, he received a bachelor’s degree and doctorate in chemistry from the University of California, San Diego.

He concedes that he has had to become a quick study on auto safety. But he said that assessing the science and the data is similar to the work he did in California.

In December, Cliff told the Senate Commerce Committee that he would work to adopt regulations such as those urging seat belt use, and would implement mandates under the new federal infrastructure law to reduce drunken driving.

He said he believes that automatic emergency braking in new vehicles should help reduce fatalities and that the agency will take a “safe systems approach” to stem the deaths. Those approaches could include roadway design and reductions in speed limits.

In addition, he said, NHTSA is trying to understand why Black Americans die in crashes at a greater rate than other groups.

“In some cases,” Cliff said, “a lot of that has to do with infrastructure, but also the vehicles themselves. So improving the new vehicle fleet is part of the solution, but it’s also important that we educate drivers.”

Source: AutoBlog.com

Jaguar’s electric future will reportedly start with trio of SUVs

Jaguar is barely hold on, with its global sales in 2021 coming in at just 86,270 units, down 15.8% on the pandemic-affected previous year.In response, the company is preparing a transformation plan that will see it turn into a purveyor of high-end, high-margin electric vehicles potentially edging close to Aston Martin and Bentley territory.
The first of these new Jaguars is due on sale in 2025 and none of the current model lines will continue pass that point. A concept is rumored to be in the works for a reveal in late 2024.
Jaguar remains tight lipped on what its future lineup will be like but Autocar, citing insiders, reported on Wednesday that a trio of SUVs is coming. The trio is alleged to include two- and four-door mid-size offerings, to be positioned as separate models, plus a full-size offering. And the price of entry will likely fall above 80,000 British pounds (approximately $97,500), according to Autocar.
A common platform, dubbed Panthera, is being developed in-house, albeit with partner firms like Magna and Nvidia. Magna, which builds Jaguar’s I-Pace under contract, is helping to develop the powertrain components while Nvidia, which is currently working with a lot of car companies, is helping to develop connectivity and self-driving aspects.
Sadly, there’s no word on a sports car. Jaguar’s participation in Formula E and its string of Vision Gran Turismo concepts suggest the idea isn’t dead at the company, though it’s possible the plan is to build a solid financial base before introducing a niche model like a sports car.
Source: MotorAuthority.com

Hyundai Ioniq 6 pics show a concept car come to life

The Prophecy has come true. The Hyundai one that is. The Hyundai Ioniq 6 is the production version of the sleek Prophecy concept, and it has arrived without too much compromise, just as the Ioniq 5 did before it. Hyundai’s reveal only shows us the design, though, so we’ll have to wait for details on specifications and pricing.

The exterior design is just as rounded and striking as the concept. It even retained the little spoiler at the rear and the unusual vertical accents on the rear bumper. The proportions have suffered a bit in the move to production. There’s far more sheetmetal on the sides and above the wheels, making the car taller overall and a bit less wraith-like. But it’s still a striking machine, and it’s certainly sleek in a physical sense. Hyundai claims it has a drag coefficient of 0.21, which was achieved with the shape of the car, plus active grille openings, the spoiler and vents at the rear, underbody panels, and the optional camera mirrors. We’re not expecting those camera mirrors to be offered in the United States, though.

Inside, the Ioniq 6 looks clearly related to the Ioniq 5. It has a similar panel housing 12-inch screens for instruments and infotainment, and a similar dashboard and steering wheel design. But it’s enhanced with new features such as more ambient lighting that can be split into two different colors. It features a floating center console, which appears to house buttons and switches such as those for the windows. This is to remove any switchgear from the doors. Also, the four pixels on the steering wheel light up, and apparently they can communicate things to the driver. Exactly what, though, Hyundai did not share.

And there’s a lot Hyundai hasn’t shared. It didn’t say a word about the powertrain except that it will use the E-GMP platform like Ioniq 5, Kia EV6 and Genesis GV60. So it will have an 800-volt battery system and the ability to power appliances. It will likely also be available with a single rear-motor or dual motors front and rear. But as for the size of the battery and the motor output, Hyundai hasn’t said. Pricing also remains a mystery, though the upgraded interior suggests this may be more expensive than the Ioniq 5. Fortunately, the details are coming in July, so we should know more soon.

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Source: AutoBlog.com

Sheetz chain lowers price for E15 gas to $3.99 for July 4 travel

Sheetz, a convenience store chain, has lowered the price of gas for the July 4 holiday weekend to $3.99 for a gallon of 88-octane regular. Note that Sheetz’ Unleaded 88 is a blend of 85% gasoline and 15% ethanol. Sheetz says (scroll to the bottom of the FAQ page): “E15 is gasoline blended with 15 percent ethanol, giving drivers a better, more affordable choice at the pump. It’s a high-performance fuel that increases horsepower while burning cleaner and cooler than regular gasoline and according to the EPA, any car 2001 or newer can benefit from using it. It reduces harmful emissions and contains fewer toxic additives all while decreasing the need for foreign oil.”

If you have a vehicle capable of using ethanol blends as high as E85 (85% ethanol and 15% gasoline), the price for the biofuel-heavy blend has been set at $3.49.

AAA says the current national average price for a gallon of regular is $4.88. Fear of a global recession is being cited as driving the price down by 8 cents since last week. The current national average for E85 stands at $4.14 per gallon.

  • Autoblog’s Cheap Gas Prices Near Me finder tool

Sheetz operates over 600 stores in Pennsylvania, North Carolina, Virginia, West Virginia, Ohio and Maryland. The price cut will be effective through the July 4 weekend. Click here to find out if there’s a Sheetz location near you or anywhere you may be traveling this holiday weekend.

Be sure to check the guidance on the inside of your gas flap, or your owner’s manual, to see whether either formulation is acceptable in your vehicle. And if they are acceptable to use, then to borrow the company’s slogan, then why the Sheetz not?

Source: AutoBlog.com

2023 Infiniti QX55 starts at $50,175, an increase of $2,650

Infiniti has added “more standard luxury amenities, driver-convenience features, and Infiniti Premium Care” to all grades of the 2023 QX55. The plusher digs come at a price, though. The entry-level Luxe and mid-level Essential trims have each gone up by $2,650, the 2023 Luxe costing $50,175 after the $1,025 destination charge, the 2023 Essential costing $55,275. The top Sensory trim has only been increased by $750, rising to $58,825.

The dosh buys perforated leather upholstery, 4-way power lumbar adjustment for the driver’s seat, a USB-C port for the back passengers, rear door handles with integrated LED welcome lighting, auto-folding heated outside mirrors with blind spot detection, and ProPILOT Assist across the board. Three-year standard maintenance program Infinity Premium Care is thrown in, too, providing routine inspections, oil changes and tire rotations for purchasers and lessees. Every variant also comes with wireless Apple CarPlay, but Android Auto still requires a cord.

Moving to the Essential upgrades to adaptive LED headlights in a cube design with auto leveling, adds Traffic Sign Recognition to the ADAS suite, and extends feature content with items like climate controlled front seats, around-view monitor, and 3D building graphics for the navigation system.

The QX55 Sensory picks up even nicer leather seating, four-way power lumbar adjustment for the front passenger, heated outboard seats in the second row, a heads-up display, and a motion-activated rear hatch.

The powertrain holds steady with the 2.0-liter variable-compression four-cylinder making 268 horsepower and 280 pound-feet of torque, “shifting” through a continuously variable transmission and sending power to both axles. The 2023 QX55 can be configured at the Infiniti site now, arriving at dealerships sometime this summer.

Source: AutoBlog.com

Polestar’s lukewarm stock debut sends a troubling signal to EV makers

The lukewarm reception for Polestar, the latest electric-vehicle company to go public in the U.S., is sending an ominous message to other startups: The purge isn’t over. 

Yes, the auto industry is due for a transformation as oil prices soar and the need for cleaner transportation becomes increasingly apparent. But, runaway inflation and a looming economic downturn is making investors leery of speculative investments, which includes EV makers despite the allure of the coming revolution. 

Polestar’s tepid welcome — the stock jumped 16% on its first day of trading Friday and then dropped 15% on Monday — is the latest evidence of that skepticism. The Swedish electric carmaker went public after merging with blank-check company Gores Guggenheim Inc. The company’s market valuation stands at about $24 billion as of Monday’s close. The stock price was climbing back up on Tuesday but was still down from its debut, hovering just below $11 a share.

“EV stocks benefited greatly from the abundance of liquidity that had been sloshing around the system for two years,” said Matthew Maley, chief market strategist at Miller Tabak + Co. “Now that this liquidity is disappearing, investors are going to have to revalue these EV names.” 

Tighter market conditions aren’t the only obstacles facing startups. The challenges are manifold, with raw material costs surging, supply-chain shortages refusing to let up and high car prices threatening to weigh on demand. Any new entrant to the EV industry is in an especially tricky situation, since materials used in EV batteries have seen some of the most intense inflation, forcing companies to raise the price of their already expensive cars, trucks and SUVs. 

On top of that, the automakers don’t yet have loyal customer bases to lean on. That’s a big advantage for stalwarts like General Motors, Ford Motor and even EV market leader Tesla.

“When you are spending that kind of money for a vehicle, you at least want it to be reliable and know that the company will be around in a few years time,” said Greg Martin, managing director and co-founder of Rainmaker Securities. 

Several EV-makers have lately seen the initial enthusiasm for their stocks evaporate. Anaheim, California-based Phoenix Motor is trading nearly 11% below its June 7 IPO price of $7.50 per share. Rivian Automotive has fallen 64% since its debut in November, while Luxembourg’s Arrival SA has lost more than 90% since listing in the U.S. 

They’re part of a broader wave of weakness among recent IPOs as investors shy away from risk due to higher market volatility — a main reason this has been the weakest first half in nearly two decades for global stock offerings.

Yet, the market valuations of EV startups Rivian or Lucid Group still don’t fully reflect all the risks, experts said. Rivian is currently valued at about $26 billion, while Lucid Group stands at around $31 billion. In comparison, century-old Ford, which has a slew of EVs coming out in the next few years and a broad portfolio of profitable internal combustion cars and trucks, is worth about $48 billion.

Rivian shares trade at a multiple of 129 times its sales, and Lucid at 359 times. For Ford, that number hovers around 0.4 times, according to Bloomberg data. For EV trailblazer Tesla, often criticized for its own high valuation, the price-to-sales multiple is 12.

“The entire EV sector — Tesla included — remains overvalued based on any conventional metrics,” said Steve Sosnick, chief strategist at Interactive Brokers. While investors are still willing to pay a premium for the prospect of an EV future, certainly not all of the startups can meet the promise that the market is pricing in, Sosnick said. “That promises more swings ahead as investors handicap the eventual winners and losers.”

Source: AutoBlog.com