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Trucks, SUVs — and Camry — shine in mixed U.S. January vehicle sales

DETROIT — Automakers posted mixed U.S. new vehicle sales data for January, with American consumers continuing to abandon passenger cars for the larger pickup trucks, SUVs and crossover models that manufacturers also love because they are far more profitable. Total industry auto sales for the month rose 1 percent versus January 2016. According to Autodata Corp, which tracks industry sales, the seasonally adjusted annualized rate (SAAR) of U.S. car and light truck sales in January fell to 17.12 million units from 17.44 million a year earlier. Analysts polled by Reuters had expected a January SAAR of 17.2 million units. U.S. auto industry sales fell 2 percent in 2017 to 17.23 million vehicles after hitting a record high in 2016 and are expected to drop further in 2018 despite a solid economy. Interest rates are rising and around 4 million late-model used cars will return to dealer lots this year to compete with more expensive new ones. Automakers have used consumer discounts to boost sales, a growing concern for observers who say this undermines resale values and profits. Discounts declined in January, but remained above 10 percent of manufacturers' recommended prices. ""I think the industry has accepted that (sales) volumes will fall somewhat in 2018 ... and I don't think the industry is going to go over the cliff with insane incentives," Mike Jackson, chief executive officer of AutoNation Inc, told Reuters after his company, the largest U.S. auto retail chain, posted a higher quarterly net profit. Mark Wakefield, head of the North American automotive practice for consultancy AlixPartners, had a gloomier perspective. The industry's less-than-stellar sales performance for January showed "we are now past the peak," he said. "Automakers are now selling the deal instead of the vehicle," he said. "That's a tough spot to be in because that treadmill is hard to get off once you're on it." General Motors January sales rose 1.3 percent, driven by a 16 percent rise in fleet sales. Sales to consumers fell 2.4 percent. GM posted strong gains for models such as the Silverado pickup truck and Equinox crossover model, while its passenger cars continued to struggle. Ford The Blue Oval posted a 6.6 percent sales decline for January, with retail sales down 4.3 percent. Sales of Ford's F-Series pickup trucks - America's best-selling vehicle brand for decades — rose 1.6 percent. Passenger cars were down more than 23 percent.

Pedestrian deaths increase; cell-phone distractions may be culprit

In Philadelphia, city officials are running a public-safety campaign that implores road users to simply "Put. Phone. Down." In Florida, a similar advertisement reminds people, "Alert Today, Alive Tomorrow." What's unusual about these messages is that they target pedestrians. Amid widespread concern about distracted drivers on American roads, there's a growing body of research that suggests distracted walking is equally problematic. Pedestrians engrossed in their phone, text or Tinder conversations are stepping into intersections without so much as a glance at oncoming traffic. That may be one reason pedestrian deaths are increasing. They jumped 15 percent in a five-year period between 2009 and 2013, according to a study released this week by the Governors Highway Safety Association, with 4,735 killed in 2013. In the same time, overall traffic fatalities have fallen by 3.4 percent. Pedestrian deaths now comprise 14 percent of all traffic fatalities, and approximately one pedestrian death occurs every two hours in the United States. Alcohol is still a top culprit – it's involved in 49 percent of pedestrian deaths on either the part of driver or walker – but as cities rush to implement a wave of slower speed limits, wider sidewalks and street medians to counter pedestrian deaths, there's new focus on holding pedestrians accountable for eliminating distractions. "Undoubtedly, motorists are responsible for many pedestrian accidents," said a July newsletter from the National Motorists Association. "But pedestrians must also assume responsibility for their own safety." This week's report from the GHSA cites growing research that suggests pedestrians aren't yet doing their part. At 20 high-risk intersections, 26 percent of pedestrians wore headphones, 15 percent were texting and 13 percent talked on the phone, according to a 2013 University of Georgia study. More recently, a William Paterson University study issued earlier this year found more than 25 percent of New York City pedestrians were distracted by either their phones or headphones. Half of the pedestrians who crossed with a "Don't Walk" signal were distracted. "Getting smashed at the bar? Don't get smashed walking home." - Minnesota public-safety campaign.

Honda charged another $363 million over Takata airbags

The Takata airbag recall is growing increasingly expensive for Honda. In the latest hit to the automaker's bottom line, the company is revising the expected costs of its global safety campaigns by an additional 44.8 billion yen ($363 million) after the massive expansion in May. Months ago, Honda announced that it had set aside 50 billion yen ($425 million at the time) to meet the predicted expenses. According to Automotive News, due to the rather arcane laws of accounting, these new costs will actually be applied to the fiscal year that ended on March 31, rather than the current one. Honda's revised earnings will be announced in late June. The company previously reported an operating profit of 651.7 billion yen ($5.3 billion), which was down 13 percent from the previous year. There has been no change to planned dividends for investors. In the US, Honda and Acura have a total of about 6.28 million vehicles in need of a replacement airbag inflator, and the automaker says about two million of those are already repaired. In addition to the Takata campaign, the company has faced other financial setbacks during this calendar year. For example, in early January, it received a $70 million fine from the National Highway Traffic Safety Administration for failing to report 1,729 cases of injuries or deaths over 11 years. As part of a strategy to improve quality globally, Honda cut back its global sales forecasts for the coming year, and it also decided not to make any volume predictions through 2017. To: Shareholders of Honda Motor Co., Ltd. From: Honda Motor Co., Ltd. 1-1, Minami-Aoyama 2-chome, Minato-ku, 107-8556 Tokyo Takanobu Ito President and Representative Director Notice of Events after the Reporting Period Regarding Product Warranty Expenses Honda Motor Co., Ltd. (the "Company") and its consolidated subsidiaries have been conducting market-based measures in relation to airbag inflators, such as product recalls and a Safety Improvement Campaign. Due to factors arising since May 2015 such as an expansion of the scope of these market-based measures based on an agreement between our supplier and the U.S. National Highway Traffic Safety Administration, a change has arisen in the estimate relating to product warranty expenses. The amount of product warranty expenses now expected to be incurred is 44,800 million yen.