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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.

Next-gen Mazda MX-5 could use carbon fiber to cut weight

The current Mazda MX-5 Miata has only been out for a few years, but the automaker is allegedly looking for ways to lighten the next one. According to a report from Autocar, Mazda is looking to carbon fiber to help the next-generation MX-5 cut weight and use a smaller engine. Despite having more safety features, modern amenities, and a stiffer body, the current MX-5 is the same size as the original sports car from 1990 and weighs less than its immediate predecessor. In a recent interview with Autocar, Nobuhiro Yamamoto, head of the Miata program, revealed that the next generation of the Miata will probably stay the same size, but could be even lighter thanks to the utilization of carbon fiber. The current MX-5 uses high-strength steel and aluminum, and Mazda doesn't use carbon fiber in any of its cars. Carbon fiber is expensive to incorporate into road-going vehicles, and so Yamamoto notes that Mazda has been hard at work making it more affordable. A lighter car could result in a smaller engine, Yamamoto said. In the US, the MX-5 comes with a 2.0-liter four-cylinder engine that makes 155 horsepower, while the Japanese and European version comes with a 1.5-liter, 130-hp engine. A smaller engine would make the sports car even lighter. It's unknown at this time if the automaker is collaborating with another automaker or a supplier to make produce carbon fiber, or if it'll make it in-house. There's no word on how much carbon fiber the next MX-5 will wear or how it will affect the sports car's price. Autocar reports that the next MX-5 won't arrive anytime before 2021, which could make the ND MX-5's lifespan an unusually short five years long. With cars getting heavier, it's nice to hear that Mazda is working on finding a way to make its lightweight sports car even lighter. Related Video: News Source: AutocarImage Credit: Mazda Mazda Convertible Coupe Lightweight Vehicles

Mazda recalls 2016-2018 Mazda3s for faulty windshield wipers

As the waves of rain showers continue to roll across the United States, Mazda has issued a recall related to a car's most important springtime feature: windshield wipers. Due to a faulty relay, the wipers on some 2016-2018 Mazda Mazda3s might stop functioning. The recall potentially affects 187,798 cars. According to NHTSA recall No. 19V272000, some 2016-2018 Mazda3s might have a malfunctioning windshield wiper relay within the front body control module that causes the wipers to become inoperable. As a resolution, Mazda will replace the old modules with new ones that have an "improved wiper relay design." This can be done at Mazda dealerships for free. This is not the first time the 2016 Mazda3 has been in the news for a recall. Although previous faults have been on smaller scales, the model previously had issues with a fuel shutoff valve causing a fuel leak, a deformed fuel tank causing a fuel leak, an improper weld on the fuel tank recirculation pipe causing a leak, and corroded parking brake actuators. Mazda has set June 3, 2019, as the expected recall start date, and owners may call Mazda customer service at 1-800-222-5500 to check on the status. The Mazda recall reference number is 3219D. News Source: NHTSA Recalls Mazda Hatchback Sedan mazda mazda3 windshield wipers