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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.

Why Honda of America won't fit 2014 Fit models with start/stop

One of the most recent yet notable additions to the modern vehicle's growing suite of fuel-saving technologies is the humble start-stop system. It's rather simple - when the vehicle is stopped, the engine shuts off. It then fires back up when the driver starts to take his foot off the brake or step on the clutch. For one of the most important fuel sippers of the year, though, start-stop tech is a no-go.
Honda will not be offering the system on the North American-spec, non-hybrid Fit despite it being a standard item on both the hybrid (pictured above) and gas-only Japanese domestic models. According to Honda, it's ostensibly due to the momentary lag, that occurs when the gas engine re-fires and power is available. The start-stop-equipped Fits "will lose at stoplights to V6s," Nobuhiko Shishido, the lead powertrain engineer for the Fit, told Automotive News. This is just an observation on our part, but unless the new Fit turns up with dramatically more than the current car's 117 horsepower, it'll "lose at stoplights" regardless of whatever fuel-saving features are fitted.
The other issue Honda sees is more realistic. In the world of the EPA, stop-start systems are not taken into account in fuel economy testing. That makes the cost-adding technology a tough sell for US consumers who are forced to take a dealer's word on real-world economy gains over the milage numbers on the window sticker. That said, wouldn't it at least make sense to offer start-stop as an option? Have your say in the Comments below.

Honda builds up new Civic Type R ahead of Geneva debut

It's been a long time coming, but it's almost here. Or almost there, we should say, because it sadly won't be coming (at least in this form) to the United States. We're talking, of course, about the new Honda Civic Type R – a hot hatch we've been anticipating for about a year and a half now through a series of prototypes and concept cars. It's finally set to bow just weeks from now, in final production form, at the 2015 Geneva Motor Show. But before it does, Honda is giving us yet another taste of what to expect with a trio of teaser images and some juicy details. That Honda's new hot hatch would be powered by its new 2.0-liter turbo four we already knew, but now the Japanese automaker is telling us that it'll produce enough juice to propel the Euro-spec pocket rocket up to a top speed of 167 miles per hour. In a hatchback. That feat will be enabled in large part by its advanced aerodynamics, elements of which we can begin to see from the teaser images – including a big front splitter, deep side skirts, a giant rear wing and an almost completely flat underbody. It'll also be kept in check by a set of Brembo brakes with 13.8-inch drilled discs clamped by four-piston calipers up front and packed into a unique set of 19-inch alloys. It'll all be wrapped for the show stand in classic Japanese racing white, and we're even given a glimpse inside the cabin, where we can see red-glowing instruments, a red center marker at the top of the steering rim and that +R button we were promised. It's all shaping up to be a rather tempting package indeed, but will have to fend off the likes of the new Ford Focus RS and ever-improving challengers from the likes of Renault and Seat to dominate the European hot hatch scene. Hopefully we won't have to wait too long to see in what form Honda brings the fight to America, too.