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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.

Audi R18 E-tron gets new livery, mixes it up in city traffic [w/video]

The 24 Hours of Le Mans is still months away, but Audi Sport apparently can't wait to get started. It has just debuted the new livery for its 2014 R18 E-tron Quattro with a public drive through the streets of the town of Le Mans, while simultaneously announcing that it has a new, larger engine.
Factory driver Tom Kristensen piloted the prototype about six miles from the cathedral in the city center to the famous race track and completed a lap of a shortened version of the course. The car wears a new color scheme, which is similar to what it has raced with in the past, employing a combination of white, silver and red, plus a touch of black. Portions of the car are also reflective to show up better at night. The last time we saw the R18, it was displayed in a black and red livery. The team has also revealed that the 2014 will be powered by a new 4.0-liter diesel V6, an increase of about 300 cubic-centimeters from last season.
Audi Sport said that the stunt was inspired by the classic days of the race when drivers used to arrive to the city in the same cars they were going to race. Even back then, it's doubtful they arrived several months early, though. The 2014 R18 will make its competition debut on April 20 at the Six Hours of Silverstone. Scroll down to watch a video of it making the drive through town and read the full press release.

Stanford goes from Pikes Peak to Thunderhill with autonomous Audi TTS

In the years since Stanford University engineers successfully programmed an Audi TTS to autonomously ascend Pikes Peak, the technology behind driverless cars has progressed leaps and bounds. Back then the Audi needed 27 minutes to make it up the 12.42-mile course – about 10 minutes slower than a human driver. These days, further improvements allow the vehicle to lap a track faster than a human. The researchers recently took their autonomous TTS named Shelley to the undulating Thunderhill Raceway Park, and let it go on track without anyone inside. The Audi reportedly hit over 120 miles per hour, and according to The Telegraph, the circuit's CEO, who's also an amateur racing driver, took some laps as well and was 0.4 seconds slower than the computer. To make these massive technological advancements, the Stanford engineers have been studying how racers handle a car. They also hooked up drivers' brains to electrodes and found the mind wasn't doing as much cognitively as expected. It instead operated largely on muscle memory. "So by looking at race car drivers we are actually looking at the same mathematical problem that we use for safety on the highways. We've got the point of being fairly comparable to an expert driver in terms of our ability to drive around the track," Professor Chris Gerdes, director of Stanford's Revs Program, said to The Telegraph. With progress coming so rapidly, it seems possible for autonomous racecars to best even elite drivers at some point in the near future. Related Video: