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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.

Honda recalls 25k Fits over grab handle, airbag issue

Honda has issued another recall for the Fit. Only this time, it comes down to a very specific issue arising in a limited cross-section of production. The recall affects over 25,000 units in the United States alone. This problem results from the bracket affixing the rear grab handle, which was apparently manufactured incorrectly. As a result, the bracket may puncture the side curtain airbag as it deploys. That's bad news, so Honda is recalling the affected vehicles to have that bracket replaced. According to the manufacturer, the issue was discovered during its own internal testing procedures, and not because of any reported incidents. The problem only affects Fit hatchbacks from the 2015 and 2016 model years, manufactured between April 11, 2014, and July 2, 2015. Even within those confines, however, the recall is limited only to those in LX trim level and not equipped with a sunroof. That amounts to an estimated 25,367 units in the US - less than a third of the 84,000+ units American Honda sold in the same fifteen-month period. This is the third recall that has affected the Fit in as many months. Last month saw 143,000 units of the Fit and Civic recalled over a transmission issue. In September, the Japanese automaker called in another 18k Fits over a problem with their ignition coils. RECALL Subject : Improper Rear Grab Rail Bracket/FMVSS 214/226 Report Receipt Date: OCT 23, 2015 NHTSA Campaign Number: 15V697000 Component(s): AIR BAGS , STRUCTURE Potential Number of Units Affected: 25,367 Manufacturer: Honda (American Honda Motor Co.) SUMMARY: Honda (American Honda Motor Co.) is recalling certain model year 2015-2016 Fit LX-trim vehicles manufactured April 11, 2014, to July 02, 2015 and not equipped with a sunroof. In the affected vehicles, the rear grab handle brackets were not manufactured properly, and as a result, the brackets may puncture the side curtain air bags upon their deployment. As such, these vehicles fail to comply with Federal Motor Vehicle Safety Standard (FMVSS) number 214, "Side Impact Protection" and number 226, "Ejection Mitigation". CONSEQUENCE: If the side curtain air bags are punctured upon deployment, the outboard seat occupants may be at a higher risk of injury during a crash. REMEDY: Honda will notify owners, and dealers will replace the rear grab handle bracket, free of charge. The recall is expected to begin December 4, 2015. Owners may contact Honda customer service at 1-888-234-2138. Honda's number for this recall is JV8.

Five vehicles named Top Safety Pick+ including new Civic, MKZ

In an attempt to help push vehicle safety to a higher level, the Insurance Institute for Highway Safety created a stricter Top Safety Pick+ rating last year, which incorporates a brutal small overlap test and requires cars to get Good ratings in four out of the five categories (and no less than Acceptable in the fifth). Joining the list of the safest cars of 2013, the 2013 Volvo XC60, Lincoln MKZ, Honda Civic (sedan and coupe) and the 2014 Mazda6 have all received the coveted TSP+ rating.
The Mazda6 and Lincoln MKZ have both been completely redesigned, and both received Acceptable ratings in the small overlap test. The Honda Civic, coming off its emergency refresh for 2013, is the first small car to be subjected to the small overlap test, and IIHS says that one of the car's many upgrades includes a stiffer front structure allowing it to receive Good ratings in all categories. Similarly, the XC60 gets all Good ratings thanks to, according to IIHS, Volvo updating the airbag software allowing the side airbags to inflate during the small overlap test.
The 2014 Subaru Forester has not yet been subjected to the small overlap test, so it must make do with just a Top Safety Pick rating until the IIHS tests small utility vehicles, which is expected to happen later in the spring.