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Mixed sales results, but automaker stocks rise on need for cars in Houston

DETROIT — The Big Three Detroit automakers on Friday reported better-than-expected August sales and issued optimistic outlooks for demand as residents of the Houston area replace flood-damaged cars and trucks after Hurricane Harvey, sending their stocks higher. General Motors, Ford and Fiat Chrysler posted mixed August U.S. sales, with GM up 7.5 percent and Ford and Fiat Chrysler down. Japanese automaker Toyota improved sales by nearly 7 percent, while Honda fell 2.4 percent. Still, analysts focused on the potential for Detroit automakers to cut inventories and stabilize used vehicle prices as residents of Houston, the fourth largest city in the United States, are forced to replace tens of thousands, perhaps hundreds of thousands, of vehicles after the devastation from Hurricane Harvey. Mark LaNeve, Ford's U.S. sales chief, told analysts on Friday that following Hurricane Katrina in 2005 "we saw a very dramatic snapback" in demand. That said, Ford sales fell 2.1 percent in August. It sold 209,897 vehicles in the United States, compared with 214,482 a year earlier. Sales were down 1.9 percent in the Ford division and off 5.8 percent at Lincoln. Demand was down for cars, crossovers and SUVs. It was not clear how many vehicles in the Houston area will be scrapped, LaNeve said, saying he had seen estimates ranging from 200,000 to 400,000 to 1 million. Ford's Houston dealers may have lost fewer than 5,000 vehicles in inventory, he said. Ford is the No. 1 automaker in the Houston market, with 18 percent share, according to IHS Markit. The company plans to ship used vehicles to Houston dealers and has "every indication we would have to add some production" of new vehicles to meet demand, LaNeve said. Investor concerns about inventories of unsold vehicles and falling used car prices have weighed on Detroit automakers' shares most of this year. Now, automakers can anticipate a jolt of demand from a big market that is a stronghold for Detroit brand trucks and SUVs. "It's got to be a positive for the industry," LaNeve said. Investors appeared to agree. GM shares rose as much as 3.3 percent to their highest since early March. Ford increased 2.8 percent at $11.34, and Fiat Chrysler's U.S.-traded shares were up 5.2 percent $15.91, hitting their highest in more than five years. GM reported a 7.5 percent increase in U.S. auto sales in August, helped by robust sales of crossovers across its four brands.

How Audi will make roads friendlier to autonomous cars

Today, Audi announced some of the new projects it will be implementing on Germany's Digital Motorway Test Bed, which comprises a few sections of highway on which the government and industry can test autonomous and connected tech. Among Audi's projects is one specifically aimed at making roads easier for autonomous cars to navigate. Audi is looking to make the road and other objects more visible. The company has been researching materials that could make guardrails and road markers reflect radar waves more readily, and Audi will install test versions soon. The goal here is to help make these objects easier for the autonomous vehicle's sensors to see in inclement weather, and at greater distances in good weather. The company will also test additional road markings that will be easier to see for onboard cameras and will help the car place itself on the road. Audi will also try out new vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) technology that will be able to alert cars to speed limits, traffic conditions, ice patches and possibly allow for driving patterns such as platooning. This will be a significant step above the traffic light communication system Audi has released in select areas. The company will also be working on very detailed mapping of the area. Audi claims it will be accurate down to the centimeter. From what we've seen at MCity, the world as it stands presents all kinds of difficulties for autonomous vehicles, from worn-out signs to rough pavement. So any advances that make it easier for autonomous cars to see and communicate should help bring such vehicles to reality much sooner. Related Video: News Source: Audi Green Audi Technology Emerging Technologies Autonomous Vehicles v2v vehicle to vehicle communications vehicle to infrastructure technology connected cars v2i

Audi Q7 to be first diesel plug-in from VW group

Lending credence to prior reports, the next Audi Q7 will be available with a diesel-powered, plug-in-hybrid powertrain, Automotive News claims, after speaking to a source in the Volkswagen Group. Both the gas and diesel-powered Q7 will debut in 2015, with the diesel PHV to arrive after that. Unlike Europe's other plug-in diesel, the Volvo V60, Audi's Q7 will be sold on both sides of the Atlantic, the source told AN. You can see a few spy photos of the Q7 PHV above. Audi research and development boss Ulrich Hackenberg previously confirmed that diesel plug-ins would be arriving earlier this year, although it wasn't clear which models the ultra-efficient powertrains would be offered on, or which of those would be offered here in the US. Time to play the waiting game...