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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.

Mazda's game plan: Compression ignition, superchargers, EVs — and still fun to drive

Today, Mazda announced its new Sustainable Zoom-Zoom 2030 initiative. Dumb marketingspeak name aside, this is Mazda's general plan to make its cars more efficient while still keeping Mazda's fun-to-drive character. The most notable part of this announcement is Mazda's new Skyactiv-X engines and the addition of EVs and electrified powertrains starting in 2019. As we reported back in January, this new supercharged Skyactiv-X engine family will be the first to use high-compression ignition, or HCCI, rather than traditional spark plugs. Each year, fuel economy and CO2 emissions standards grow ever tighter. Each and every automaker around is looking for ways to improve both factors. Initially, most have chosen to downsize engines and add turbochargers. That's why Mazda's new Skyactiv-X engines are going to be so special. They essentially work like a diesel engine, using extremely high compression to ignite the fuel rather than the flame from a spark plug. Adding a supercharger rather than a turbo retains a smooth and immediate engine response. Look for a 10 to 30 percent increase in torque and a sizable boost in fuel economy. Mazda's engine already have some of the highest compression ratios around, but these new engines will push well into diesel territory. The biggest issue so far with gasoline compression ignition is controlling when the gasoline ignites. Mazda claims to have solved this issue, seamlessly moving from spark to compression ignition. This new plan comes 10 years after the first Sustainable Zoom-Zoom initiative was announced. With Sustainable Zoom-Zoom 2030, Mazda wants to focus on the Earth, society, and people. Together with the new engines, Mazda hopes to create a sustainable future that still involves engaging and fun-to-drive automobiles. First, Mazda wants to consider emissions over the entire life of a car. That means reducing emissions generated while building the car or fueling and charging a car in addition to those released while it's on the road. The goal is to reduce emissions to 50 percent of 2010 levels by 2030, and a 90 percent reduction by 2050. New electrified models will debut in 2019 in markets that have a high ratio of clean energy for power generation. Mazda's focus on society aims to improve safety with the Mazda Proactive Safety philosophy. Like with Skyactiv, this ethos goes far beyond simply improving an engine or adding new active safety technology.

2019 Mazda CX-5 fuel economy takes a hit with new turbocharged engine

We learned all about the 2019 Mazda CX-5 last week, and now we've discovered fuel economy for its new 2.5-liter turbocharged engine. Unsurprisingly, it gets slightly worse fuel economy than its naturally aspirated counterpart. The 2019 turbo crossover, which only comes in all-wheel drive form, gets 22 mpg city and 27 mpg on the highway. Front-wheel drive CX-5s with the naturally aspirated 2.5 liter net you 25 mpg city and 31 mpg highway — all-wheel drive drops 1 mpg in both categories. For a little comparison, the turbocharged engine makes 250 horsepower and 310 pound-feet of torque on 93 octane gasoline, while the non-boosted engine makes 187 horsepower and 186 pound-feet of torque. You're definitely taking a hit in fuel economy, but the gain in power might be worth it, since the decrease isn't that terrible. Cars in its price and power range with all-wheel drive have comparable fuel economy. The Ford Escape with the 2.0-liter turbo is rated at 20/27; Chevrolet's Equinox with the 2.0-liter turbo is 22/28 and the VW Tiguan gets 21/29. There isn't really a clear winner in fuel economy for this much power when you look around the segment, but Mazda's engine is half a liter larger than everyone else. This translates to better torque than most of its competitors, but Mazda manages similar fuel economy. Also similar to many of these decked-out compact crossovers is the new high price of the Mazda we wrote about before. You won't be getting in to the turbocharged CX-5 for any less than $35,865. If you wanted a bigger Mazda like the CX-9, its fuel economy figures aren't significantly worse than the CX-5. Front-wheel drive versions are rated 22/28, and it drops 2 mpg in each category for all-wheel drive. The updated 2019 CX-5 should be coming to dealers soon. Related video: Featured Gallery 2019 Mazda CX-5 View 9 Photos Green Mazda Fuel Efficiency Crossover SUV mazda cx-5