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U.S. auto sales in April expected to drop despite big discounts

DETROIT — U.S. auto sales in April likely fell nearly 8 percent from the same month in 2017 despite big discounts for consumers, industry consultants J.D. Power and LMC Automotive said on Thursday. For much of the past two years, the discounts offered by automakers have remained at levels that industry analysts say are unsustainable and unhealthy in the long term. April U.S. new vehicle sales will likely be about 1.31 million units, down from 1.42 million units a year earlier, the consultancies said. The forecast was based on the first 17 selling days of April. Automakers, including Ford and Fiat Chrysler Automobiles, will release April U.S. sales results on May 1. Earlier this month, No. 1 U.S. automaker General Motors said it will stop reporting monthly U.S. sales because the 30-day snapshot does not accurately reflect the market. GM will instead issue quarterly sales reports. U.S. new vehicle sales fell 2 percent in 2017 to 17.23 million units after hitting a record high in 2016. Sales are expected to drop further in 2018 as interest rates rise and more late-model used cars return to dealer lots to compete with new ones. LMC expects full-year 2018 U.S. new vehicle sales to come in at around 17 million units. "Uncertainty and unfavorable factors appear to be mounting for autos, including a volatile stock market, rising interest rates, rising oil prices and potential trade roadblocks," Jeff Schuster, LMC's head of global vehicle forecasts, said in a statement. The seasonally adjusted annualized rate of sales for April will be 16.6 million vehicles, down more than 2 percent from 17 million units in April 2017, the consultancies said. Retail sales to consumers, excluding lower-margin fleet sales to rental agencies, businesses and government, were set to decline about 9 percent in April. The level of consumer discounts, which can erode profit margins and undercut resale values, "remains the larger concern," the consultancies said. The average discount was $3,698, up $187 from April 2017. Discounts on trucks and SUVs were up $426, but down $226 on passenger cars. Reporting by Nick CareyRelated Video: Image Credit: Reuters Earnings/Financials Chrysler Ford GM JD Power

Lincoln Continental production likely to shift to Flat Rock

Lincoln production may be returning to Michigan, according to a new report from Automotive News. While the brand's current big sedan, the MKS, is built alongside the Ford Taurus, Ford Explorer, and their Police Interceptor counterparts at the Blue Oval's Chicago, IL factory, the production version of the Continental won't be screwed together in the Windy City. According to AN, "industry sources" claim the Continental will join the Ford Mustang and Ford Fusion – on which the big Lincoln is loosely based – at the company's Flat Rock, MI factory. The move isn't just based on convenience, though. Ford is selling a lot of Explorers, and shifting Lincoln production away from Chicago Assembly frees up production capacity for the popular SUV. "Chicago Assembly Plant is vital to our global manufacturing footprint and will continue to manufacture the Ford Taurus, Ford Explorer and Police Interceptor vehicles even after we phase out production of the MKS in 2016," Ford told Automotive News. "We will continue to match production to demand." Looking at the numbers further backs up the argument against Lincoln production in Chicago. Last year alone, Ford built nearly 285,000 Explorers and over 73,000 Taurus sedans, compared to just 8,300 Lincolns. Finally, as AN tells it, Ford is almost telegraphing the Continental's arrival in Flat Rock. The facility has a four-week shut down scheduled from June 15 through July 13, which is twice as long as the typical summer vacation, while there's another two weeks off slated for September. Related Video:

Ford Mustang GT Bi-Fuel CNG

Highly intrigued, we recently visited a Southern California Gas Company office to check out several hybrid vehicles promising something new. Unlike more commonplace gasoline-electric hybrids, we were there to evaluate innovative gasoline-compressed natural gas (CNG) hybrids - yes, they run on unleaded gasoline and compressed natural gas. According to the experts on hand, this arrangement delivers extended range and reduced emissions while chipping in with lower operating costs than pure-gasoline vehicles. There are advantages over its gasoline-electric counterparts, as well.
The program is part of a three-way collaboration between The Carlab, a Southern California-based automotive consulting firm, Landi Renzo USA, a company specializing in alternative fuel solutions, and America's Natural Gas Alliance, a group that promotes CNG. Long story short, the team has engineered a way to allow a modified internal combustion vehicle to seamlessly switch between two fuels (gasoline and CNG) with no driver intervention. In theory, and if it works as well as promised, it's a win-win for the vehicle owner and the environment.
Parked at the Gas Company office were six different gasoline-CNG hybrid vehicles. To demonstrate the technology's versatility (just about any gasoline vehicle may be modified) Carlab brought a varied assortment of bodystyles, each from a different automaker. After taking a quick glance at the half-dozen in the parking lot, we made a beeline for the performance-oriented Ford Mustang GT - a 2012 model - with the six-speed manual gearbox.