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May 2016: FCA wins, Ford and GM stumble on weak car volumes

The May 2016 sales numbers are in, and it looks as though FCA is getting some vindication for boldly cancelling two slow-selling car models. Meanwhile, Ford saw overall sales dip and GM's May volume took a big dive versus the same month in 2015. While Marchionne's decision to axe the Chrysler 200 and Dodge Dart has drawn criticism as being short-sighted, it's working for FCA so far. Although the Dart and 200 aren't out of production yet and no capacity has been shifted to crossover or trucks, May's numbers show that the emphasis on Jeep and Ram models makes sense right now. FCA's US sales rose 1 percent last month compared to May 2015, putting the year-to-date total at 955,186 vehicles, an increase of 6 percent compared to the same period last year. Standouts included the Jeep Renegade, Compass, and Patriot, and the Fiat 500X. Ram pickup sales were down 3 percent. And your fun fact is that Alfa Romeo sales were up precisely 10 percent, for a total of 44 4Cs sold versus 40 in the same month last year. At FoMoCo, the Ford brand took a hit to the tune of 6.4 percent from May 2015 to 2016, registering 226,190 sales last month. Lincoln showed improvement on its modest numbers, going from 9,174 to 9,807, a 6.9 percent increase. Overall, Ford was down 5.9 percent for the month to 235,997; despite the slump, year-to-date total Ford sales are up 4.2 percent to 1,112,939. Strong sellers included Escape, Expedition, F-Series, and Transit - big stuff. Most small and/or efficient models (Fiesta, Focus, Fusion, C-Max) saw sales slides. Fusion sales were also down, likely due to effects of model changeover to the freshened 2017 model. Ford has promised four new crossovers and SUVs by 2020 and if things keep trending this way the company will be able to sell them, but things could change in the next four years. GM saw the worst of it for domestic brands. Retail and fleet sales were down for each of the four divisions, with the May 2016 total dropping 18 percent to 240,450 vehicles. GM's year-to-date sales are down 5.0 percent in 2016 to 1,183,705. Both the Sierra and Silverado were down significantly, and the majority of Chevy, Buick, GMC, and Cadillac nameplates saw sales decreases, with both small cars and larger utilities included. Not even big stuff could help GM this month, it seems. We'll have more on the rest of the industry's May sales as those figures trickle in.

GM recalls nearly 1 million vehicles for airbag defect

WASHINGTON — General Motors said on Friday it will recall nearly 1 million sport utility vehicles in the United States because the driver's airbag inflator may explode during deployment. The recall covers 994,763 Buick Enclave, Chevrolet Traverse, and GMC Acadia vehicles from the 2014 through 2017 model years with modules produced by ARC Automotive Inc. Dealers will replace the driver's airbag module. The National Highway Traffic Safety Administration said a driver in Michigan of a 2017 Chevrolet Traverse was in a crash in which the front-driver airbag inflator ruptured during deployment causing facial injuries. An April 25 inspection confirmed that the front driver airbag inflator ruptured in the vehicle. The National Highway Traffic Safety Administration (NHTSA) demanded the recall of 67 million air bag inflators because it believes there is a safety defect, but auto supplier ARC Automotive Inc rejected the U.S. regulator's request, documents released on Friday show. The auto safety agency said the inflators pose an unreasonable risk of death or injury. Even as ruptures mount, "ARC has not made a defect determination that would require a recall of this population," NHTSA said in its demand letter to the Tennessee-based company. "Air bag inflators that project metal fragments into vehicle occupants, rather than properly inflating the attached air bag, create an unreasonable risk of death and injury." GM said it was still investigating the issue with the assistance of a third-party engineering firm. "GM is taking this expanded field action out of an abundance of caution and with the safety of our customers as our highest priority," the Detroit automaker said. GM said it was aware of two prior ruptures of ARC-manufactured airbag inflators in 2015 Chevrolet Traverse vehicles, and GM conducted two earlier small recalls of about 3,000 ARC inflators. All three rupture events in Chevrolet Traverse vehicles involved the same inflator variant. ARC noted in a letter made public Friday that no root cause for those ruptures has been identified by ARC or GM. ARC said it was assessing the scope of GMÂ’s recall.  Government/Legal Recalls Buick Chevrolet GMC Safety Crossover SUV

Buick will go sedan-free by killing the Regal after 2020

Pour one out for the Buick Regal. Citing a growing lack of demand, the firm announced it will deep-six its last remaining sedan and its only station wagon after the 2020 model year. Buick spokesman Stuart Fowle told Motor Authority that buyers clearly prefer crossovers and SUVs; so far, nearly 90 percent of the company's 2019 sales have come from high-riding models. In other words, the company's decision to send the Regal to the pantheon of automotive history is business, not personal. "Buick continues to be ahead of the consumer shift towards SUVs," Fowle explained. Autoblog confirmed the decision applies to the sedan, which is available in a sporty GS configuration (pictured) that we praised as "the coolest car Buick has made in years," and the TourX wagon, which attracted Buick's wealthiest buyers and sold far better than the company expected. Its retirement underlines the colossal difficulty of selling a wagon that's not a Subaru Outback in America. View 46 Photos Buick didn't loudly announce its exit from the passenger car market, but it's beating Ford to the punch. The last Cascada rolled off the assembly line earlier in 2019, and the bigger Lacrosse is one of six cars whose retirement was announced by General Motors in 2018. Neither will be replaced, and the odds of seeing another Regal are extremely low. The company's message is clear: Buyers want crossovers and SUVs, so that's what they'll get. As a bonus, axing the Regal will finally allow Buick to end its reliance on former sister company Opel, which General Motors sold to Paris-based Peugeot in 2017. It developed the Regal, and manufactures it in a factory located next to Opel headquarters in Russelsheim, Germany. The Regal will live on elsewhere in the world. Buick will continue to sell it in the Chinese market because motorists there still buy sedans, and Opel/Vauxhall will keep offering its version of the car (called the Insignia) across Europe. The model recently received minor updates inside and out to remain fresh, but it competes in a segment that's free-falling and its days are likely numbered.