Top 10 Moments and Trends of 2021 in the Auto Industry
In a year that once again was severely affected by the COVID-19 pandemic, automakers, suppliers, dealers and of course consumers continued to face unprecedented changes and challenges.
Now is the time to look back at the moments and trends that we’ll most remember from 2021 in the auto industry—save for new vehicle debuts, which will be featured in a separate Top 10. Go to the next few pages to see the list.
Global Chip Shortage
Without question, the global chip shortage was the single most disruptive force in the auto industry this year. Automakers had to cut production, keep thousands of unfinished vehicles in parking lots and/or sacrifice some popular features including heated seats (GM) and touchscreens (BMW).
Empty Dealer Lots
A direct consequence of the chip shortage combined with supply and transportation issues globally, new vehicle deliveries plunged in the second half of 2021. With many consumers turning to used vehicles (despite steep price increases), dealer lots were sometimes eerily empty.
Rising Vehicle and Gas Prices
Gas prices soared to record heights in some parts of the country this year. One gas station owner in Quebec was so fed up with oil companies that he jacked prices to $2.40 per litre as a protest. Meanwhile, the average transaction price of a new vehicle in the third quarter of 2021 increased to $42,744—an all-time high according to J.D. Power. The same thing happened with used vehicles, actually.
Stellantis is Born
On January 16, Fiat Chrysler Automobiles (FCA) officially merged with French auto group Peugeot-Citroën (PSA) to form Stellantis, the world’s fourth-largest automaker in terms of sales, representing 14 different brands. Later in the year, the new company shed light on its EV plans.
Everyone Has an Electrification Plan
Electric vehicles are the future and a number of automakers announced their electrification plans at some point in 2021. The list includes Audi, Stellantis, Ford, Honda, Jaguar Land Rover, Lamborghini, Mazda, McLaren, Mercedes-Benz, MINI, Nissan, Toyota, Volkswagen and Volvo.
Voltswagen?
In late March, Volkswagen America posted an official statement announcing it would change its name to “Voltswagen.” However, it turned out to be an early April Fools prank as part of a marketing campaign surrounding the upcoming ID.4 launch. The whole thing angered many journalists, and the U.S. Securities and Exchange Commission (SEC) even got involved.
The (Temporary) Return of Auto Shows
After being cancelled due to the pandemic, auto shows returned in the fall of 2021 with the Munich and Los Angeles events, not to mention SEMA. There were also smaller, EV-dedicated shows, like the ones held in Montreal and Quebec City. Unfortunately, a new rise in COVID-19 cases is already forcing the cancellation of all Canadian auto shows that were supposed to take place this winter and early spring.
A Chinese SUV Lands in Canada
The onslaught of electric vehicles is only beginning, so don’t be surprised to see new car companies arrive and try to show struggling legacy automakers how it’s done. This fall, California-based Imperium Motor Company came to the Montreal and Quebec City EV shows to unveil a Chinese SUV that will be sold in Canada starting early in 2022. Meet the SEV.
A First Electric Pickup Hits the Road
The Rivian R1T finally entered production in September and deliveries began later in 2021, beating GM, Ford and Tesla’s own electric pickups. Units for Canada will be ready sometime in mid-2022. Oh, and the company announced it will install more than 3,500 fast chargers at over 600 locations in the U.S. and Canada by the end of 2023.
The Richest Man in the World
Thanks to a blowout earnings report and a big car order by Hertz, Tesla's market cap has surpassed $1 trillion USD—and CEO Elon Musk has emerged as the richest person in the history of the world. His net worth hit a peak of $318 billion USD in November. Musk was named TIME magazine’s Person of the Year.