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November U.S. new car sales mixed as automakers deepen discounts

DETROIT — Major automakers posted mixed U.S. November new vehicle sales on Friday and predicted a competitive December as they rushed to sell vehicles and boost their numbers before 2017 ends. Automakers are trying to sell down 2017 model-year vehicles, offering high discounts to consumers as the year-end nears. In 2016, the industry reported record annual sales of 17.55 million units. According to consultancies J.D. Power and LMC, discounts have been above 10 percent of the average transaction price for 16 of the past 17 months, a level experts say is unhealthy and unsustainable. The November sales results come as the National Automobile Dealers Association said on Friday it expects new vehicle sales to decline to 16.7 million units in 2018, after dropping to 17.1 million for the full year in 2017. If that forecast comes true, the race to move new vehicles off dealers' lots will only intensify next year. Brandon Mason, a director at PwC's automotive practice, said a worrying trend for the industry was a rising number of subprime loans. He said subprime levels are at just over 20 percent of originations, against more than 30 percent prior to the Great Recession, but recent increases remain a concern. "That's a bit of a red flag," Mason said. "It's something to keep an eye on as we move into 2018." November results by automaker: General Motors: Sales fell 2.9 percent, with sales to consumers flat against the same month in 2016. Much of the decrease was driven by lower fleet sales. GM said strong SUV and crossover sales pushed its average transaction price for the month above $37,000 for the first time. The level of unsold cars, which has been a concern for analysts and the industry, rose slightly to 83 days' supply, from 80 days at the end of October. "More vehicles are sold in December than any other month, and we are very well positioned because we have momentum in so many segments, but especially in crossovers," said Kurt McNeil, U.S. vice president of sales operations. Fiat Chrysler Automobiles: Fleet sales are low-margin, and FCA in particular has targeted a significant reduction in this type of sale in 2017. It posted a 4 percent overall decrease in sales for November, but fleet sales were down 25 percent while sales to consumers were up 2 percent on the year. Ford: The No. 2 U.S. automaker reported a 6.7 percent increase for the month, with fleet sales up nearly 26 percent and retail sales 1.3 percent higher than in November 2016.

2017 Honda Civic rolls into dealerships Monday starting at $20,535

Honda announced pricing for the British-built Civic hatchback today as well as availability. Starting this Monday, you'll be able to walk into a Honda dealership and pick up a hatch for as low as $20,535. For that price, you can take home a base-level Civic LX with the 1.5-liter, turbocharged engine and a 6-speed manual transmission to channel the 174 horsepower and 167 lb-ft of torque to the pavement. Stepping up to the Sport trim adds a dual-outlet center-mounted exhaust and brings the power total to 180 and torque up to 177. The price also jumps to $22,135. Adding the CVT to either trim adds an extra $800 and, although horsepower ratings remain unchanged, the torque output drops down to 162 on both models. The highest Civic hatchback trims are the EX, EX-L with navigation and Sport Touring, and they are all only available with a CVT. The EX and EX-L trims start at $23,635 and $26,135 respectively, and bring niceties including heated seats and dual-zone climate control. The new Sport Touring trim tops the range and takes everything the EX-L and normal Sport trims have and adds red illuminated instruments, and a 540-watt 12-speaker sound system. Unlike the other trims, the Sport Touring model will not be available until later this year and pricing hasn't been announced yet. Compared with other hatchbacks in the compact car segment, the Civic hatch has a slightly higher starting price. Most of the competition starts at just under $20,000. However, the Civic does effectively top the charts for horsepower. The only car that beats it is the Mazda3 hatchback with the 2.5-liter engine, which produces 184 horsepower. However, you'll have to spend at least $26,280 to get that version of the 3. The next closest model is the VW Golf with 170 horsepower and a starting price of $20,715, and the rest of the competition produces 160 horsepower or less. So if you're looking for some pep on a budget, the Civic looks like a solid choice, and if it drives like the sedan and coupe, it looks even better. Related Video: Featured Gallery 2017 Honda Civic hatchback Image Credit: Honda Honda Hatchback Economy Cars pricing honda civic hatchback compact cars civic hatchback

Honda exec says US market near capacity, could hurt subprime buyers

Is there a point in the US auto industry where companies should start considering the welfare of their customers ahead of selling more cars? American Honda Executive Vice President of Sales John Mendel thinks that level exists, and we may be getting very close to it.
According to Automotive News, Mendel believes that finding more customers in the market could require pursuing subprime buyers and offering longer-term loans. However, he refuses to use those tactics. While selling models this way can improve things briefly, the strategies hurt resale prices and lower vehicle profits over time. The company won't do "stupid things in the short-term that damage the person who bought yesterday," he said to Automotive News. "It's a very, very short-term tactic especially in the subprime area."
American Honda, which combines the Acura and Honda brands, has seen market share decline from 9.7 percent to 9.1 percent through July 2014, according to Automotive News, and Autoblog's By the Numbers stats showed it posted falling sales in five of the seven months with data this year. Though, Mendel claims that was partially because the company focused on retail sales over fleets. The delays of the launches for the Honda Fit and Acura TLX likely didn't help either.