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Automakers, dealers are rushing cars to Houston after Harvey

DETROIT — Houston-area car retailers and automakers are rushing to reopen dealerships and beef up inventory to replace many hundreds of thousands of vehicles damaged in flooding from Hurricane Harvey. Pete DeLongchamps, vice president for manufacturer relations at Group 1 Automotive, the third-largest U.S. auto dealer group, said the company prepared for the storm with a plan designed after Hurricane Katrina in 2005. This included moving moved inventory to higher ground and cleaning roof drains to avoid cave-ins. Group 1 thus lost a "relatively small percentage" of inventory and reopened its roughly 25 dealerships in the Houston and Beaumont area by Thursday. "Things have been moving fast and furious with a large number of tow-ins already," DeLongchamps said. "Our customers have lost a lot of vehicles, we need to help them replace." Harvey brought record flooding to Houston and killed at least 35 people. The storm is expected to briefly depress already slowing U.S. auto sales but could eventually help boost demand as damaged cars are replaced. Automakers report U.S. August sales on Friday. Estimates for the number of Harvey-damaged vehicles needing replacement range up to 500,000. By Thursday, AutoNation, the largest U.S. auto retail chain, had reopened its 17 Houston stores and is moving cars and trucks from other regions, company spokesman Marc Cannon said. The company plans to move 500 to 1,000 used cars to an AutoNation USA used car store and stage a sale Sept. 21-23, when many would-be buyers should have insurance checks to replace destroyed vehicles, Cannon said. AutoNation is still assessing how many vehicles it lost, but it too moved vehicles to higher ground ahead of the storm. General Motors spokesman Jim Cain said the number of damaged vehicles at dealerships "is relatively modest." "But there are still several dealerships that are inaccessible, so the number will increase," he said. GM will move new and used vehicles to Houston, "but it won't be done until the infrastructure and our dealers are ready." Ford is still assessing damage and inventory needs, a spokeswoman said. CarMax, the biggest U.S. used car dealer, will reopen its six Houston area stores on Labor Day, spokeswoman Claire Hunter said. "We are mobilizing additional inventory to the region as we speak," Hunter said. Paul Lips, chief operating officer at ADESA, a unit of KAR Auction Services Inc., which with Manheim dominates the U.S.

Detroit Three to lose dominance of North American auto output in 2017

DETROIT — North American vehicle production by the unionized Detroit Three automakers will fall behind the combined North American output of Tesla and automakers from Europe and Asia for the first time this year, IHS Markit forecast on Wednesday. In 2017, the Detroit Three could build 8.6 million vehicles in North America, while Tesla and foreign automakers build 8.7 million, IHS Markit analyst Joe Langley said. By 2024, the gap will widen, with Asian and European automakers and Tesla combining to build about 9.8 million vehicles in North America. General Motors, Ford and the North American operations of Fiat Chrysler Automobiles NV will combine to build 8.1 million vehicles, down 6 percent from this year. Mexico is on track to increase its share of North American vehicle production, Langley said, moving to 4.5 million vehicles a year by 2024 from about 4 million vehicles currently. The milestone for the growth of Tesla and foreign automakers in North America comes as the Trump administration is pushing to limit imports of vehicles from Mexico in negotiations to overhaul the North American Free Trade Agreement. The declining share of North American vehicle production for the Detroit automakers also challenges U.S. and Canadian unions that represent their workers. Canadian workers are on strike at a GM factory in Ontario to protest the automaker's decision to cut jobs and move to Mexico some production of sport utility models built there. Foreign automakers over the past year have announced plans for a wave of new or expanded plants in North America, while Tesla is ramping up to build as many as 500,000 cars a year at its plant in Fremont, Calif. Often referred to as "transplants," the foreign-owned factories are poised to become the mainstream of the North American auto industry. Automakers are increasingly using factories in China or Mexico to build vehicles that used to be assembled solely in the United States, Langley said. He cited as an example Ford's decision to shift production of the Focus small car for North America to a Chinese assembly plant. Reporting by Joseph WhiteRelated Video: Image Credit: Reuters Plants/Manufacturing Chrysler Ford GM

Ford reveals 345-horsepower output for new Focus RS [w/video]

When Ford revealed the new Focus RS at the Geneva Motor Show, it promised it would deliver "well in excess of 315 horsepower." It didn't say exactly how much that would come to, but now it has. On the eve of its dynamic debut at the hands of Ken Block at the Goodwood Festival of Speed, Ford has confirmed that its new hot hatch will pack 350 metric horsepower. Those reaching for their calculators will find that works out to 345 horsepower by our standards. The power output is backed up by 324 pound-feet of torque, capable of being boosted up to 347 for up to fifteen seconds at a time. Those figures come from a retuned version of the same 2.3-liter EcoBoost turbo four as the one available in the Mustang, but produces over ten percent more power thanks to a new turbocharger, upgraded intake and exhaust, and a larger radiator. All that muscle will be channeled to all four wheels through Ford Performance's new all-wheel drive system with dynamic torque vectoring, launch control, and selectable drive modes, including a Drift Mode that (as you can see from the video below) allows the hot hatch to get more than a little sideways. Ford still isn't saying what those specs will translate to in terms of measurable performance figures, but as far as output goes, things are looking pretty good. The 30th Ford RS model already packs more power and torque than the new Honda Civic Type R (306 hp, 295 lb-ft), Volkswagen Golf R (292 hp, 280 lb-ft), Subaru WRX STI (305 hp, 290 lb-ft) or the Nurburgring-conquering Renault Megane 275 Trophy-R (271 hp, 266 lb-ft) and Seat Leon Cupra (276 hp, 258 lb-ft). It even respectably holds its own against the more upscale BMW M235i (320 hp, 330 lb-ft), Mercedes A45/CLA45 AMG (355 hp, 332 lb-ft), and Audi RS3 (362 hp, 343 lb-ft). Whether it'll outshine them all in real-world conditions remains to be seen, but we're looking forward to finding out whenever Ford deems fit to drops those performance stats on us. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.