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Trucks, SUVs drive U.S. October new vehicle sales

DETROIT — Major automakers posted mixed U.S. new vehicle sales in October on Wednesday, though America's love affair with high-margin pickup trucks and SUVs remained in full bloom as larger, pricier vehicles fared better than passenger cars. Auto industry publication WardsAuto put the seasonally-adjusted annualized rate (SAAR) for light vehicle sales in October at a robust level of 18 million units. But after a long boom cycle, carmakers are still ill-prepared for the slight decline in sales anticipated for full-year 2017 and have taken too few steps to trim production, said Doug Mehl, a partner in consultancy A.T. Kearney's automotive practice. "When you make a new vehicle, you have volume assumptions tagged to it, and who wants to be the guy who says, 'I'm going to make less of this really cool model'?" Mehl said. "But eventually the market is the reality, and it's going to force companies one way or other here." General Motors GM reported a sales drop of 2.2 percent for the month, with consumer sales down 6.6 percent. But sales of high-margin pickup trucks, sport utility vehicles and crossovers all rose. GM also cut its inventory of unsold vehicles — a source of concern for the market — slightly. The automaker has worked to reduce its volume of excess inventory, including through significant production shutdowns in the third quarter. GM had said its inventory would rise in October. "We are heading into the fourth quarter with good momentum, thanks to a strong U.S. economy and very strong pickup and crossover sales," said Kurt McNeil, GM vice president for U.S. sales operations. GM slightly reduced consumer discounts as a percentage of average transaction prices to 13.5 percent, from 13.7 percent in the third quarter. Industry experts believe consumer discounts above 10 percent of the average transaction price are unhealthy as they erode resale values and are unsustainable in the long term. Consultants J.D. Power and LMC said last week that based on preliminary October sales numbers, discounts have exceeded 10 percent in 15 of the past 16 months. Ford The U.S. auto industry posted record sales of 17.55 million vehicles in 2016. New sales received a strong boost in September as consumers replaced vehicles damaged in southeast Texas by Hurricane Harvey the previous month. Full-year 2017 sales are expected to be slightly lower than 2016.

Even Ferrari swept up in latest Takata recall expansion

The scope of Takata's deadly airbag problems continues to widen. Eight manufacturers announced recalls Friday that affect more than 12 million vehicles, according to documents filed with federal regulators. The automakers include Honda, which is recalling 4.5 million units, Fiat Chrysler with 4.3 million, Toyota with 1.65 million, and Subaru, which is recalling almost 400,000. Some of these cars include the Saab 9-2x and Pontiac Vibe that Toyota and Subaru made for General Motors. Mazda will recall 730,000 vehicles and Nissan has 400,000 affected units. The smallest numbers were posted by Mitsubishi, with 38,000 Lancers manufactured from 2006 to 2007, and as a noteworthy high-end manufacturer, Ferrari is calling back 2,800 vehicles. These are all US-market cars. Beyond America, the Japanese Transport Ministry has announced seven million additional vehicles will be recalled, which means 19.6 million vehicles across the globe are affected by recalls announced. The defects have been traced to an insufficiently manufactured airbag inflator, which lacks a drying agent that would prevent the inflators from deteriorating over time. Thirteen deaths have been linked to the faulty airbags, which have become unstable and are prone to exploding and showering vehicle occupants with lethal amounts of metal shrapnel. A private equity firm, KKR & Co., has been named in a possible buyout of the struggling Takata. Related Video: News Source: ReutersImage Credit: Shutterstock Government/Legal Recalls Ferrari Honda Mazda Automakers Mitsubishi Nissan Pontiac Subaru Toyota Saab Safety

Honda, Acura lay out future plans: HR-V and more coming in 2022

Automakers and PR representatives are notoriously tight-lipped about upcoming vehicles. The infamous line that all of us in the car news business are familiar with is, "We cannot comment on future product." But this week, Honda opened up a little bit and laid out its big reveals for the coming year, and it's going to be a busy one. It all starts with the 2023 Honda HR-V, shown in the renderings above. The company didn't share a whole lot of details since it was focusing on the broad product plans, but it did note that it will be "unique to North America." It's not clear if it's just styling, which is abundantly obvious compared to the European HR-V and Japanese Vezel shown below, or if it will have a different platform and powertrains. We suspect the latter, since looking at the renderings, not only does it have a meaner, more aggressive look, but the glass in the greenhouse is different, as are the door handles. The HR-V is only the start of the big product rollout. More SUVs follow starting with the new CR-V, and then the new Pilot. A new Accord is coming, and of course there's the imminent Civic Type R. Acura's rollout is a bit more modest, with the big launches being the new Integra and the Type-S version of the MDX. Honda HR-V / Vezel View 11 Photos Plug-in hybrids aren't part of the plan There's one thing that Honda isn't including in its plans, and that's plug-in hybrids. When asked why, American Honda's executive Vice President of National Operations Dave Gardner noted that public and governmental feelings have moved from just reducing emissions to eliminating them entirely. As such, the time and effort to develop plug-in hybrids doesn't make sense when that could be applied to fully electric cars. Conventional, non-plug-in hybrids are still planned, and Honda is expecting ever increasing hybrid sales in the next few years. The company is expecting half of Accord sales will eventually be hybrid. As for Acura, hybrids aren't planned to be a big part of sales, with the brand jumping straight to EVs. Speaking of EVs, Honda's first North American electric car is still planned to be the Prologue. It's the electric model that's going to be based on a General Motors product. It's slated for the 2024 model year, and Honda is anticipating around 70,000 annual sales for it to start. Acura will get a counterpart to the Prologue, which may be named ADX. Related video: