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U.S. auto sales fall in July, as Detroit dials back on inventory, rental sales

DETROIT — U.S. carmakers said on Tuesday they continued to slash low-margin sales to daily rental fleets in July as General Motors, Ford and Fiat Chrysler Automobiles struggled to curb a slide in retail sales. July is on track to be the fifth straight month in which the annual pace of car and light truck sales declined from the same month a year ago, in part because of fewer fleet sales, analysts and industry executives said. July 2016 sales hit a strong 17.9-million-vehicle pace. GM said the seasonally adjusted annual sales rate fell to an estimated 16.9 million vehicles in July. At midmorning on Tuesday, GM shares were down 3.4 percent at $34.77, Ford was down 2.8 percent at $10.91, and Fiat Chrysler shares were down 0.3 percent at $12.05 in New York. GM sales dropped 15 percent from a year ago to 226,107 vehicles, as the company cut rental fleet sales more than 80 percent. The automaker said inventories of unsold vehicles at month's end were 104 days, down from 105 days at the end of June. GM has promised investors to reduce inventories to 70 days by year-end. Ford said its July sales dipped 7.5 percent to 200,212 vehicles, as it cut fleet sales more than 26 percent. Inventories fell to 77 days from 79 the previous month. Fiat Chrysler said sales dropped 10 percent to 161,477, as it also cut back sales to daily rental fleets. Among the top Japanese companies, only Toyota reported a year-to-year gain, with sales up 4 percent to 222,057 — just 4,000 units behind GM. Honda sales were down 1 percent to 150,980 — its first-quarter sales continuing to decline in North America but seeing a big increase in China. And Nissan sales fell 3 percent to 128,295. GM, Ford and Fiat Chrysler have cautioned that second-half financial results likely will be lower than first-half results, in part reflecting production cuts in North America and pricing pressures. The automakers this year have been deliberately dialing back sales to rental-car companies, which often generate little to no profit, while struggling to keep retail sales from sagging further, according to industry analysts. Industry consultant LMC cut its full-year forecast for new vehicle sales to 17 million vehicles. Automakers sold a record 17.55 million vehicles in the United States in 2016.

Will states start to prevent you from registering cars that have pending recalls?

The impact of 2014 – henceforth known as Year of the Recalls – will have long-ranging consequences on the auto industry. One of the biggest changes, though, might not be in the way manufacturers inform the government of pending recalls or in the way Uncle Sam punishes automakers that violate its rules, but in the ability to sell cars with pending recalls. And strangely enough, the charge is being led by an automaker. Honda Executive Vice President Rick Schostek, pictured above, argued during a meeting of the Senate Transportation Committee that the government needs to take a role in mandating that consumers have recall services performed. That could include withholding registration for vehicles with pending recalls, Bloomberg reports. Honda is just one of the automakers currently embroiled in the massive Takata airbag recall. "It's a good idea," safety advocate Clarence Ditlow said, according to Bloomberg. "California won't give you a registration if you have an emissions recall. Why not a safety recall?" "Honda is going to use any innovative tools to find customers and get these recalls done," Schostek told the Transportation Committee. The exec, aside from echoing Ditlow's viewpoint, also argued for requiring dealerships and garages to inform vehicle owners of incomplete recalls, regardless of the service provided. Schostek also made an argument that state governments could step in, as well. Whatever ends up happening, it's fair to say that between Takata and General Motors, the future of recalls for American consumers are set for significant changes. News Source: BloombergImage Credit: J. Scott Applewhite / AP Government/Legal Recalls Honda Ownership Safety

Acura NSX and David Lee Roth wail together in Super Bowl spot

Super Bowl 50 is just over a week away, but carmakers are already rolling out their big ads. Acura's newly released commercial uses the screams and moans from Van Halen's David Lee Roth and the song Runnin' with the Devil to build excitement about the upcoming supercar. As Van Halen plays, the NSX evolves from a slab of metal into the turbocharged, hybrid coupe. In a patriotic touch, the commercial uses red, white, and blue to subtly communicate the supercar's US development and production. It's a clever ad, sure, but we wish it showed more of the new NSX's high-performance capability. There's never a bad time to listen to some Van Halen, though. The video above is the 30-second Super Bowl commercial, which airs during the first quarter. However, the clip below is a one-minute version that lets the visuals breathe more. The longer cut is the better one, but Acura's choice is understandable given the expense of Super Bowl ad time. Acura Rolls Out American-made NSX Supercar with Super Bowl Commercial Set to Van Halen Classic, Runnin' with the Devil Jan 29, 2016 - TORRANCE, Calif. Iconic Van Halen song infuses high-voltage energy into NSX rollout Comprehensive activation includes social media sweepstakes, enabling consumers to experience the NSX Acura is one of the first brands to use Twitter Conversational Video to launch Super Bowl spot Acura is showcasing the next generation NSX, the only supercar made in America1, to the soundtrack of an iconic American rock song in a new commercial that will debut during Super Bowl 50. The high-energy vocal effects of the Van Halen classic Runnin' with the Devil provide the powerful beat for the Acura commercial that will appear during the first quarter of the big game. The spot is a showcase of the Precision Crafted Performance brand direction that is core to the Acura brand and vividly represented in the NSX supercar. The new Acura Super Bowl commercial is posted to Acura.com and Acura social media channels for previewing before the big game and is augmented with a series of unique social media activations and live experiences, including one of the first applications of Twitter Conversational Video to launch a Super Bowl spot. "In our Acura commercial, we wanted to convey the excitement of the NSX to a big Super Bowl audience," said Jon Ikeda, vice president and general manager of Acura.