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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.

GMC Terrain headlight recall fix is a sticker

This GMC Terrain recall over a headlight issue has gone from fascinating to absurd. It started when GMC discovered the headlights on the 2010-2017 Terrain were out of compliance with Federal Motor Vehicle Safety Standards (FMVSS). A pinpoint of low-beam light was being reflected off the high-beam reflector. This bounced a tiny sliver of bright light up into the trees and the sky beside the road, not into oncoming traffic. GMC did the right thing, reporting the noncompliance to the National Highway Traffic Safety Administration. Because the sliver of light was coming from the low beams and was four times brighter than the maximum allowable low beam brightness, the NHTSA told GMC to recall 740,581 units of the SUV. GMC asked for an exemption, admitting the bright spot could cause glare while noting the errant beam didn't affect other road users. The automaker hadn't received any complaints, only a comment from one owner saying the lights put a bright spot in the trees on the other side of the road. The NHTSA denied the request. GMC began notifying owners in April that they'd need to come in for a fix once a fix had been developed. That's the fascinating part. The absurd part, which Tire Meets Road uncovered, is that the fix is a "Headlamp Applique Kit." Which is a piece of frosted tape applied to the outside of the headlight that lets low-beam light through and tamps down any potential glare from the caroming beam. Notice that the parallelogram of frosted tape matches the L-shaped frosted area along the inside of the headlight housing. That portion was already a feature of the lamp, as can be seen in our 2016 Terrain Denali Quick Spin. The repair needs a trip to the dealer for a tech to place a positioning template over the headlight and put the applique kit in the proper spot. GM's instruction kit says the whole thing should take 0.2 of an hour, or 12 minutes—about the time it it would take to get checked into and out of the dealership service department. Owners aren't impressed, some calling the fix unnecessary and ridiculous, and the tape should make it clear that GMC feels the same way. Some owners have said they're going to skip the recall. Those drivers will find that just as GMC couldn't escape the legal ramifications, neither can they. Local motor vehicle bureaus keep track of recall compliance.

Weekly Recap: Volvo buys Polestar, makes performance a priority

Volvo is taking its performance business in-house, and the Swedish carmaker announced Tuesday that it bought tuning company Polestar, which has long been known for producing sporty Volvos. The move allows Volvo to ramp up its performance business, and it plans to increase Polestar-branded vehicle sales to 1,000 to 1,500 annually, up from the 750 total projected for this year. The companies have been working together on motorsports projects since 1996. Financial terms of the sale were not released, and Polestar workers will move over to Volvo. Former Polestar owner Christian Dahl will keep control of the Polestar racing team and operate it under a new name. In addition to sales volume, Volvo has ambitious plans for other parts of Polestar, including its aftermarket business. Volvo also said it will use its twin-engine hybrid technology for Polestar models in the future, though specifics and timing were not revealed. Meanwhile, Volvo announced it will offer a run of 265 total Polestars in the United States for the 2016 model year, with S60 and V60s available. "Driving a Volvo Polestar is a special experience. We have decided to bring this experience to more Volvo drivers, placing the full resources of Volvo behind the development of Polestar as the model name for our high performance cars," Volvo CEO Hakan Samuelsson said in a statement. OTHER NEWS & NOTES 2016 Chevy Silverado, GMC Sierra, get nose jobs Automakers tend to refer to light updates as 'facelifts,' and that's exactly what Chevy gave the 2016 Silverado and GMC Sierra. Chevy slightly changed the front end of the truck. Using the one photo released of the new Z71 model as a guide, we can see that the headlights went from a stacked vertical design to single bulbs, and they are set on top of LED running lights. The grille has more body-colored elements instead of shiny metal, and the hood has a new line running down the middle (look really closely). The design theme will be similar across the portfolio, though materials and details will vary, a spokesman said. Some models, like the High Country and LTZ will have more chrome, and the LEDs are only for the upper trims. Chevy also said it will use the eight-speed automatic transmission on more versions of the Silverado, and it updated the MyLink feature to support Android Auto and Apple CarPlay.