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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 development chief discusses future rotary platform

The switch can again be flicked from "The Rotary Engine is Doomed" to "The Rotary Engine Lives!" Mazda is re-tooling the once nearly forgotten rotary to work as a range extender for hybrid vehicles, with a chance for it to do even more than that. The latest information sounds rather promising for those still holding out a candle for the rotary. Mazda's powertrain development chief, Ichiro Hirose discussed future rotary plans with the Australian Drive at the CX-30 crossover's launch. Hirose told Australia's Drive that Mazda is currently working with a very flexible and efficient rotary hybrid platform that doesn't necessarily come with the heavy emissions and fuel consumption baggage the rotary engine has earlier been saddled with. Hirose calls the rotary-based solution "XEV," referring to its adaptability. "It has the generator function and also it can be used to provide the drive force to give you traction. [...] Because the rotary engine is compact in terms of its packaging size [and] if we should choose to do so we can have the generator, rotary engine and electric motor all in one [driveline] because of the small packaging." The result is an electrified platform that could be made to work as a mild hybrid, series hybrid or a battery electric vehicle with a rotary range extender (if given a plug), depending of the required implementation. It's as if Mazda had a slider to adjust the balance of using a rotary engine and using electric power, to make the platform more of a jack-of-all-trades. Hirose explained: "If you reduce the other way around it could be a pure battery-electric, using really the rotary engine as a range extender and, according to the balance, you can even provide something akin to the series hybrid that is providing the drive force. [...] So, we are looking at a wider coverage and scope. Based on this architecture it allows us to do that, to explore the huge range of applications we can have with the rotary." The platform would also be flexible when it comes to meeting various stringent emissions standards. To be able to sell XEV-based vehicles globally would mean introducing a certain setup for one region and one for another, keeping in mind when the rotary power would kick in and how. While Hirose keeps the question open whether these vehicles would make it for sale in the United States, he says Mazda would be able to make them pass U.S regulations. "I'm just saying that — theoretically — if we were to introduce it in the U.S.

2016 Mazda CX-9 caught on video

We already know from earlier spy shots that the second-generation Mazda CX-9 is advancing in development, but here's an opportunity to actually see the crossover on the road. The video shows the CX-9's rear, but wait 50 seconds for a good look at it in profile and from the front. The CX-9 is no longer wearing the same camouflage from the last spy photos, but this time it has more cladding to hide the lines. Even with the obfuscation, you can still get a sense of the general shape. The CUV largely looks like a stretched version of the CX-5, which is a great place to start. Rumors suggest the new CX-9 will debut in November at the 2015 Los Angeles Auto Show and to launch in 2016 for the 2017 model year. Power is tipped to come from a turbocharged, 2.5-liter Skyactiv four-cylinder, and all-wheel drive is expected to be available. Related Video: