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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.

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 recalls 1.4 million vehicles in the U.S.

DETROIT — Honda is recalling over 1.4 million vehicles in the U.S. to repair drive shafts that can break, window switches that can overheat and a software flaw. The software recall includes 737,000 Accords from 2018 to 2020 and Insights from 2019 and 2020. A programming flaw in a control computer can cause the rear camera, turn signals and windshield wipers to malfunction. Owners will be notified in late January about when they should take their vehicles to a dealer for repairs. Two drive shaft recalls cover 430,000 Honda Civic Hybrids from 2012, the 2007 through 2014 Honda Fit, the 2013 through 2015 Acura ILX and the 2013 through 2015 Honda Accord. TheyÂ’re in 22 states where salt is used to clear roads in the winter. The drive shafts can break due to corrosion. Dealers will inspect the left and right drive shafts and replace them if needed. Parts arenÂ’t available yet. Owners will get an initial notification in February and will be told later when to go to a dealer. About 268,000 CR-Vs from 2002 through 2006 are included in the power window switch recall. Water can get into an open driverÂ’s window and cause an electrical short, possibly touching off a fire. ItÂ’s the second recall for the same issue. The cars were recalled starting in October of 2012, but the repairs didnÂ’t work. Honda says it has reports of 16 fires but no injuries. Honda says owners should take the SUVs in for repairs as soon as they get a recall notice. Those will be mailed starting in late January. Owners can also check https://owners.honda.com/service-maintenance/recalls or call (888) 234-2138 to see if their vehicle is affected.