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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 on sales upswing in Europe but won't build there

Auto sales in Europe have been a tricky proposition for some years, but Mazda has seen some success on the backs of the CX-5 and new Mazda6. According to a report form Automotive News Europe, though, that doesn't mean we should be looking for the Japanese manufacturer to set up production operations there.
Mazda's European CEO, Jeff Guyton, explained to AN that "Our intention is to have manufacturing scale. That gives you scale economy and quality through repeatability." In other words, a big honking plant in one part of the world is preferable to a half dozen small factories building the same vehicles.
European sales for Mazda are up 5.4 percent in the first half of 2013, with 74,000 units sold. That kicked the Zoom-Zoom brand's market share up from one to 1.2 percent. Small gains, but gains nonetheless. According to Guyton, Mazda would need to sell 200,000 units of just one model in Europe for local production to make sense. Mazda's best European year saw 320,000 units sold across the entire range.

2016 Mazda CX-5 [w/video]

It's difficult for me to get excited about crossovers. I try hard not to be the stereotypical car guy: ignoring the fact that the rest of the world loves these tall hatchbacks, while yelling, "station wagons make more sense!" until I've voided my lungs of air. Deep down I am that guy, but I work around it. Historically the Mazda CX-5 is one crossover that has been quasi-immune to my knee-jerking. It doesn't weigh two tons, offers a manual transmission (in poverty spec, but still...), and looks faster than its competitors. Most importantly, the CX-5 can round a corner without wobbling like a Slinky at the top of the stairs. No item on that list of plaudits would likely crack the top ten "desirables" for average small CUV shoppers. So, for the 2016 update, Mazda instead upgraded the in-cabin experience along with the requisite nips and tucks to the exterior. I borrowed a 2016 model CX-5 to see whether or not those concessions to comfort affected the car-nerd stuff. And to see if the Mazda could still be my go-to CUV recommendation. Driving Notes The engine options are unchanged for 2016. You can still have the fine, 2.5-liter four-cylinder engine, with its 184 horsepower and 185 pound-feet of torque, or its wimpier 2.0-liter lil' brother. My fully spec'd Grand Touring came with the bigger engine, which feels adequately powerful for the class, but not quick. In an era where turbocharged engines are everywhere, revving the Skyactiv 2.5-liter up to its torque peak at 3,250 rpm takes some commitment. I'm annoyed that there's no manual offered with the 2.5L (a combo I can have in both the Mazda3 and Mazda6), but I don't hate the automatic transmission. The six-speed unit is unobtrusive 99 percent of the time; something I regretfully can't tell you about certain nine-speed autos. There are no paddles to play with, but you can tap the shift lever up and down if you're struck by a need for total control. With a new center console and dash, and the addition of the Mazda Connect infotainment system, the '16 CX-5 feels like a new vehicle from behind the wheel. An attractive, pliant, leatherish material swaths the neat console and surrounding real estate. And the perforated leather seats feel damn near upscale. I think that Mazda Connect's version of the central control knob (with handy adjacent volume knob) is almost luddite-proof in its simplicity. There's no latency between twisting and reaction on the screen.