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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.

Lexus LF-30 Electrified Concept announces the brand's entry in EVs

The star of the Lexus booth at the biennial Tokyo auto show is an extremely futuristic concept named LF-30 Electrified that previews the firm's cars could look like — and be powered by — in 2030. The LF-30 Electrified uses clever technology to take Lexus into the electric vehicle segment for the first time. Lexus has leveraged parent company Toyota's expertise in the field of hybrid powertrains to become one of the industry's pioneers in the segment, but it has always shunned fully electric drivetrains. The LS-30 signals an about-face. Drawing on lessons learned while designing hybrids, engineers developed a 536-horsepower drivetrain that consists of a mammoth, 110-kilowatt-hour lithium-ion battery pack and four in-wheel electric motors that can deliver front-, rear-, or all-wheel drive. Don't let the press images fool you; the LS-30 is huge. It's nearly as long as the firm's LS flagship sedan, closer to a Chevrolet Suburban in width, and it weighs almost 5,300 pounds. It can nonetheless reach 60 mph from a stop in 3.8 seconds, and it can travel for up to 310 miles on one charge according to the overly optimistic WLTP testing cycle. Those figures might be irrelevant, because the driver can become a passenger by turning on the on-board autonomous technology and letting it worry about how quickly to accelerate, and when to charge. There's even a drone that Lexus calls an Airporter that autonomous transports luggage, for example, from in front of the owner's house directly to the car's trunk. Odds are you won't even need to tip it. Traveling in the LF-30 feels different depending on where you're sitting. The driver experiences a new concept Lexus calls Tazuna that draws inspiration from how a rein can create a mutual understanding between a horse and a rider; it sounds similar to what Mazda aimed for with the Miata, which famously channeled Jinba Ittai, or horse and rider as one, but it's a completely different take on it. The driver can adjust the stereo or dial a destination in the navigation system without taking his or her eyes off the road thanks to steering wheel-mounted switches and a large head-up display. The driver feels a lot like a jet fighter pilot, then. The passenger, on the road hand, is traveling first-class thanks to a seat inspired by high-zoot air travel, and a gesture-controlled screen. The rear seats recline, and the folks sitting in them can watch movies on a voice- and gesture-controlled glass roof called SkyGate.

Here We Go Again: Lexus attacks EVs in new ad [UPDATE]

UPDATE: We got a comment from founding member of Plug In America Paul Scott on this ad. It's available below. The last time Lexus attacked plug-in battery vehicles in an ad, it had to apologize. The company is remaining on message, though, and has revisited a hybrid-vehicle advertising campaign that implies that driving a battery-electric vehicle is a big waste of time, because of all the charging you need to do. With the new spot, Lexus once again raised hackles of plug-in vehicle advocates because, once again, the accuracy is questioned. "The ad's message was that a consumer could [drive] a vehicle with advanced technology today, without sacrifice or change in habit." – Lexus spokesman Brian Bolain Lexus is running print ads (click to enlarge) in publications like Wired poking fun at EVs, the International Business Times says. Lexus highlights range anxiety in the spot, comparing the amount of time it takes to fully recharge an EV – and the idea that air conditioning and using the radio can shorten an EV's range – to the fun of just driving a Lexus. "The [print] ad was merely intended to paint a picture of life with a hybrid, which is basically no different from life with a traditional gas-powered vehicle, versus life with an EV, which can have challenges or at least uncertainties," Lexus spokesman Brian Bolain told AutoblogGreen. "In other words, at its core, the ad's message was that a consumer could participate in driving a vehicle with advanced technology today, without sacrifice or change in habit." The campaign picks up where Lexus's previous anti-EV campaign left off this spring. A website promoting Lexus's hybrids (and parent company Toyota's H2 vehicles) claimed that there was a hydrogen refueling infrastructure set up in 20 US states (not anywhere close to true). Plug-in advocates were also quick to note that higher-powered EV recharging systems can allow a plug-in to be recharged in far less than the four hours the Lexus site claimed. Of course, Toyota has a lot more skin in the game when it comes to hybrids and, starting next year, hydrogen fuel-cell vehicles than it does for plug-ins. Through August, the company sold just 842 RAV4 EVs and about 11,500 Toyota Prius Plug-in Hybrids in the US. That compares to almost 19,000 Nissan Leaf EVs and a Tesla Model S count that's likely close to that figure as well (Tesla breaks out neither monthly sales numbers nor US-only sales for the Model S).