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November U.S. new car sales mixed as automakers deepen discounts

DETROIT — Major automakers posted mixed U.S. November new vehicle sales on Friday and predicted a competitive December as they rushed to sell vehicles and boost their numbers before 2017 ends. Automakers are trying to sell down 2017 model-year vehicles, offering high discounts to consumers as the year-end nears. In 2016, the industry reported record annual sales of 17.55 million units. According to consultancies J.D. Power and LMC, discounts have been above 10 percent of the average transaction price for 16 of the past 17 months, a level experts say is unhealthy and unsustainable. The November sales results come as the National Automobile Dealers Association said on Friday it expects new vehicle sales to decline to 16.7 million units in 2018, after dropping to 17.1 million for the full year in 2017. If that forecast comes true, the race to move new vehicles off dealers' lots will only intensify next year. Brandon Mason, a director at PwC's automotive practice, said a worrying trend for the industry was a rising number of subprime loans. He said subprime levels are at just over 20 percent of originations, against more than 30 percent prior to the Great Recession, but recent increases remain a concern. "That's a bit of a red flag," Mason said. "It's something to keep an eye on as we move into 2018." November results by automaker: General Motors: Sales fell 2.9 percent, with sales to consumers flat against the same month in 2016. Much of the decrease was driven by lower fleet sales. GM said strong SUV and crossover sales pushed its average transaction price for the month above $37,000 for the first time. The level of unsold cars, which has been a concern for analysts and the industry, rose slightly to 83 days' supply, from 80 days at the end of October. "More vehicles are sold in December than any other month, and we are very well positioned because we have momentum in so many segments, but especially in crossovers," said Kurt McNeil, U.S. vice president of sales operations. Fiat Chrysler Automobiles: Fleet sales are low-margin, and FCA in particular has targeted a significant reduction in this type of sale in 2017. It posted a 4 percent overall decrease in sales for November, but fleet sales were down 25 percent while sales to consumers were up 2 percent on the year. Ford: The No. 2 U.S. automaker reported a 6.7 percent increase for the month, with fleet sales up nearly 26 percent and retail sales 1.3 percent higher than in November 2016.

2015 Pikes Peak Hill Climb: Practice Day 1

Based on what we learned from the first day of practice for the 2015 Pikes Peak International Hill Climb, the quickest race pace up the paved road to more than 14,000 feet above sea level may not be from internal combustion locomotion anymore. "If it all goes well, and the planets align, [under nine minutes] shouldn't be out of the question," said Paul Wilding, team manager for Nobuhiro "Monster" Tajima's Rimac Automobili Monster Sport E-Runner entry. Wilding added that if Tajima's car held up during the week it could finish first overall, which would be the first time an EV takes the overall crown at the hill climb. Last year, the gap between overall winner Romain Dumas' Norma M20 RD Limited and the fastest EV was just over two seconds. In the 2014 race, Tajima finished third in his class. "We think this car is the fastest way up now," said Wilding. "There's no affect from the altitude – this car is a monster, our driver is a monster." The practice, which isn't mandatory but is sanctioned by race officials, concluded Tuesday morning with a few surprises ahead of Sunday's race. Tajima will be racing for the fourth consecutive year in the all-electric modified division. Wilding said today's conditions weren't ideal and the race Sunday could be more challenging than initially expected. "It was a lot bumpier than we expected today," he said. "But today means nothing. It was all [reconnaissance]. Tomorrow means everything." The Honda ARX-04B LMP2 prototype brought to Pikes Peak had a difficult start to the week. Honda Racing spokesman Eric Mauck said the car struggled and didn't run in practice Tuesday. "We're looking for data and research more than anything else," Mauck said. "We're not going for Sebestain's record this year, we're just looking to gather information for years to come." Colorado-native, Honda driver, and Formula E racer Justin Wilson will pilot the LMP2 up the mountain Wednesday – assuming the car is ready. "He's obviously a guy that Honda thinks very highly of. Anytime we have an opportunity to put Justin behind the wheel of anything we want to," Mauck said. Honda driver Tetsuya Yamano, who is driving an all-electric Honda CR-Z in the exhibition class, echoed Mauck's assessment. "We're not making a racecar," Yamano said through an interpreter. "This is part of [research and development] and we're looking to get as much data back to engineers in Japan as possible ...

2017 Honda Accord Hybrid First Drive

Honda waited until the Accord Hybrid was on sale for an entire month before inviting journalists out for a test drive. Usually, these events are previews, a chance for those in the industry to get an advance feel for what's about to go on sale. Not this time. The new 2017 Honda Accord Hybrid has been available at your local dealer for a month now. It's high time we got caught up. We were able to do just that at a drive event in Napa Valley last week. We can't say that the new Accord was a hoot to drive, but an Accord isn't supposed to be thrilling. It's supposed to sell boatloads of units a year, and that's why a hybrid version is so important. With ever-increasing fuel-efficiency standards coming around the world and an uncertain future when it comes to gas prices, having a car like this in the stable is obviously important. Of course, the future is only one side of the coin. As we said, the Accord Hybrid is on sale now, in a time of relatively low gas prices in the US, where sedan sales are being outpaced by CUV and SUV sales. This is the reality that the Accord Hybrid is facing. Honda, though, is confident. Just how good does the automaker think the new Accord Hybrid is? We'll guess about twice as good. That's because Honda execs said they expect to sell about 30,000 units a year, about double the volume of the 2014 Accord Hybrid. That's the official sales plan, anyway. The car went on sale June 15, 2016, so we're already off to the races. Sure, only 31 Accord Hybrids were sold in the second half of June, but we can't draw any conclusions this early in the process. Without a doubt, 30,000 sales is respectable for a hybrid (Toyota sold 30,640 Camry Hybrids in 2015), but let's just note for the record that Honda sold 355,557 Accords last year. If it manages to sell 30,000 Hybrids a year, and Accord sales numbers remain stable, that'll be just 8.4 percent of the overall total. The car should easily appeal to 30,000 buyers a year. The car should easily appeal to 30,000 buyers a year. The clean and attractive exterior design hasn't been massively overhauled from the 2014 Accord Hybrid, but why change what isn't broken? The headlights are updated, the front fascia has sharper lines, the taillights are more impressive – and that's about it.