2012 Lexus Is 250 Base on 2040-cars

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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.

Krafcik says US Gov. shutdown is slowing Oct. auto sales

The government shutdown is eroding consumer confidence in the auto market, says John Krafcik, CEO of Hyundai's US sales unit, and could lower October sales by as much as 10 percent, Automotive News reports. "It's that anxiety that keeps customers, potential buyers, on the sidelines when making a big purchase like an automobile," Krafcik says, adding that industry sales could be off by five to 10 percent in October compared to September.
The fourth quarter, which started October 1, usually consists of increased auto sales as dealerships clear their lots to make room for the next year's models. Leading up to the fourth quarter this year, the auto industry was doing well in the fragile, recovering US economy, although September deliveries decreased by 4.2 percent, due in part to this year's Labor Day sales being recorded for August.
To help its customers, Hyundai announced it is deferring new-car loan and lease payments for furloughed federal workers until they're called back to work and also offering them a three-month payment deferral if they buy a new Hyundai in October. "We have already had requests from over a thousand people to have their payments deferred," Krafcik says.

Lexus LF-FC concept is a preview of the next LS [w/video]

As far as flagship luxury sedans go, the Lexus LS is one of the oldest on the market. But the upscale Japanese automaker is out to fix that in short order. And to give us a taste of what's to come, it's presenting the concept you see here at the Tokyo Motor Show today. Called the LF-FC, the show car clearly points the way forward for the next-generation LS. The design adopts the latest take on the brand's "L-finesse" styling language, with a large, spindle-shaped front grille leading to sharp creases cutting their way across the entire surface. Lexus refers to the roofline as approaching that of a four-door coupe, though it clearly places more of an emphasis on rear-seat space. Power comes from a conceptual hydrogen fuel cell whose components have been scattered throughout the vehicle to optimize weight distribution. The fuel cell drives the rear wheels and sends power to hub motors in the front wheels as well for all-wheel-drive capability. Those 21-inch rims are made of carbon fiber, with aluminum spokes, to minimize unsprung weight. Naturally, Lexus has equipped the concept with all the latest electronic aids to track the flow of traffic and even drive autonomously through it. Of course a vehicle like this is designed around the driver and occupants. The white and brown interior space features four individual bucket seats, because really, who wants to dream of riding in the middle? Interior appointments look suitably tasteful, all done in satin-finish wood and metal with white and brown leather, and would look at home on the next generation of first-class aircraft cabins. Lexus has equipped the concept with gesture control that incorporates a floating holographic image to show users where to place their hands to operate the audio and ventilation systems touchlessly. In typical concept style, the LF-FC sits wider and squatter than the production sedans at which it takes aim. More telling, however, is the overall length: at 208.7 inches, it's a few thumbs longer than even the extended version of the current Lexus LS, and a touch longer than the current long-wheelbase Mercedes S-Class, Audi A8, BMW 7 Series, Jaguar XJ, and Maserati Quattroporte. We're looking forward to seeing the production version in the form of the next LS in due course to see how it measures up against the competition, and not just in terms of size. Related Video: Lexus LF-FC Flagship Concept Revealed at the Tokyo Motor Show TOKYO (Oct.