Auto blog

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.

Jeep to stop using bad Takata airbag inflators next week

FCA is gradually ceasing to produce vehicles equipped with Takata airbag inflaters found to be inherently faulty. These airbags, which lack a certain drying agent, have been linked with dangerous premature ruptures. According to FCA, the only vehicle still in production with the named airbag is the 2016 Jeep Wrangler, and in this case they are passenger-side airbags. Fiat Chrysler says it isn't aware of any incidents involving these air bag inflaters in Jeeps, but amidst concerns that vehicles with failure-prone airbags are still being marketed to customers, North American-market 2016 Wranglers will cease to be equipped with them starting next week. As per FCA's statement, global production is expected to end by mid-September. In addition to Toledo, Ohio, the Wrangler is produced in Egypt. FCA isn't going to sell the cars with the deemed-faulty airbags without disclosing the fact to the customers: anyone buying a 2016 Wrangler will be notified that the vehicle will most likely be subject to a recall in the future, even if there is not currently a recall announced for them. NHTSA has specified a "Coordinated Remedy Program" recall schedule for the coming years, and the airbag inflaters will degrade over a time frame of several years, when subjected to a humid environment. Related Video: News Source: Fiat Chrysler Automobiles, The Wall Street JournalImage Credit: Julien Amado / Autoblog Quebec Plants/Manufacturing Recalls Chrysler Jeep Ownership Safety Takata airbag recall

Going high-tech, the 4x4 way

Is It An Off-Road Adventure Or Just A Walk In The Park?
I remember having to get out and lock hubs and shift into neutral to engage low range.
Coming off press previews of the 2013 Land Rover Range Rover and the 2014 Jeep Grand Cherokee that involved some heavy-duty off-road rock climbing, I'm simply amazed at the capabilities that these vehicles possess. But even more impressive (or troubling depending on your perspective) is the relative ease with which you can operate these vehicles in seemingly impossible terrain.