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The next steps automakers could take after sales drop again in April

DETROIT (Reuters) - Major automakers on Tuesday posted declines in U.S. new vehicle sales for April in a sign the long boom cycle that lifted the American auto industry to record sales last year is losing steam, sending carmaker stocks down. The drop in sales versus April 2016 came on the heels of a disappointing March, which automakers had shrugged off as just a bad month. But two straight weak months has heightened Wall Street worries the cyclical industry is on a downward swing after a nearly uninterrupted boom since the Great Recession's end in 2010. Auto sales were a drag on U.S. first-quarter gross domestic product, with the economy growing at an annual rate of just 0.7 percent according to an advance estimate published by the Commerce Department last Friday. Excluding the auto sector the GDP growth rate would have been 1.2 percent. Industry consultant Autodata put the industry's seasonally adjusted annualized rate of sales at 16.88 million units for April, below the average of 17.2 million units predicted by analysts polled by Reuters. General Motors Co shares fell 2.9 percent while Ford Motor Co slid 4.3 percent and Fiat Chrysler Automobiles NV's U.S.-traded shares tumbled 4.2 percent. The U.S. auto industry faces multiple challenges. Sales are slipping and vehicle inventory levels have risen even as carmakers have hiked discounts to lure customers. A flood of used vehicles from the boom cycle are increasingly competing with new cars. The question for automakers: How much and for how long to curtail production this summer, which will result in worker layoffs? To bring down stocks of unsold vehicles, the Detroit automakers need to cut production, and offer more discounts without creating "an incentives war," said Mark Wakefield, head of the North American automotive practice for AlixPartners in Southfield, Michigan. "We see multiple weeks (of production) being taken out on the car side," he said, "and some softness on the truck side." Rival automakers will be watching each other to see if one is cutting prices to gain market share from another, he said, instead of just clearing inventory. INVESTORS DIGEST BAD NEWS Just last week GM reported a record first-quarter profit, but that had almost zero impact on the automaker's stock. The iconic carmaker, whose own interest was once conflated with that of America's, has slipped behind luxury carmaker Tesla Inc in terms of valuation.

2022 Lexus NX gets new chassis, engines and even a PHEV

The Lexus NX is one of the more recent additions to the Lexus lineup, having made its debut for the 2015 model year. In that time, it's only received a couple of facelifts. Now, the small crossover is getting its first full redesign in the form of the 2022 Lexus NX. And while it may look evolutionary, it offers a load of new and welcome features. The new NX is now built on the TNGA-K platform, which also underpins the Toyota RAV4 and Camry and the Lexus ES among other small to midsize models. Lexus says it's structurally more rigid and offers a lower center of gravity. Fitted to this platform is a plethora of powertrains. The NX 250 gets a naturally aspirated 2.5-liter four-cylinder making 203 horsepower and 184 pound-feet of torque. It's available with front- or all-wheel drive. The NX 350h hybrid gets the same engine but with a couple of electric motors. That gives it all-wheel drive as well as 239 horsepower. The regular NX 350 gets a turbocharged 2.4-liter four-cylinder making 275 horsepower and 317 pound-feet of torque, plus all-wheel drive. Topping the range is the NX 450h+ with the RAV4 Prime's 2.5-liter four-cylinder and larger electric motors making 302 horsepower. It's also only available with all-wheel drive and has a 36-mile electric range. The non-hybrid powertrains now come with an eight-speed automatic, but the hybrids continue to use CVTs. All of these new mechanical updates fit under a fresh but familiar-looking shell. It's short and taut with many curves and creases, but it's generally smoothed and softened compared to the previous model. The most distinct change is at the rear where the NX adopts a full-width taillight like the IS and UX. It also features the brand's name spelled out in letters just below the taillight. The inside is more significantly updated, and the focal point is undoubtedly the new infotainment system. The old touchpad and mouse designs are dead, and the NX will be the first to use this new touchscreen system. It was developed by a division at Toyota's North American headquarters, and seems much more intuitive, though we'll have to reserve final judgment until we try it ourselves. It uses either a 9.8-inch screen or optional 14-inch unit. The latter incorporates dedicated touch buttons for comfort controls and physical temperature dials blended into it. The smaller screen uses all physical controls for comfort functions. Both have a physical volume knob, too.

Toyota's car subscription service rewards you for safe driving

Toyota has teamed up with Sumitomo Mitsui Auto Service Company to launch a new car subscription service with gamification elements in Japan. The program is called Kinto, and it'll offer two tiers: the first, called Kinto One, will allow you to drive one Toyota vehicle over a three-year period for anywhere between $420 and $900 a month. When the tier becomes available on March 1st, you can choose from the available Prius, Corolla Sport, Alphard, Vellfire and Crown models. The other tier called Kinto Select will give you the power to drive one of the available Lexus-branded vehicles for $1,630 a month for three years. Now, what truly makes Kinto potentially more interesting than other leasing services is a rewards program that awards points based on how well you drive. Toyota didn't really expound on how it will work, other than saying that it will "award points to customers based on their vehicle usage (such as for safe or ecological driving)." As TechCrunch notes, the assumption is that the vehicle's in-car connected system will come with the ability to monitor your driving. Best thing about it is that the points you earn aren't useless rewards you can't even use: you'll be able to apply them toward payments. Kinto's Select option will be available starting on February 6th, almost a full month before the more affordable Kinto One launches. Both will be available via select dealers in Tokyo on a trial basis, and they won't officially roll out across Japan until summer. The points program won't be available until fall, when Kinto One's options will also expand. Unfortunately, there's no word on whether Kinto will eventually roll out in the US and other markets outside Toyota's home nation.For more information on Vehicle Subscription Services, check out the Complete Guide.Reporting by Mariella Moon for Engadget.Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.