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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.

100k Mazda6 sedans recalled over tire-monitoring systems

A tire pressure monitoring system (TPMS) is, as you might have guessed, designed to monitor the air pressure in the tires, and alert the driver if pressure drops. But a problem found in the Mazda6 could keep the system from doing its job. According to the recall notice issued by the National Highway Traffic Safety Administration, the TPMS in the Mazda6 might not recognize a loss in tire pressure if all the tires slowly deflate at the same time. Under-inflated tires, it goes without saying, could increase the risk of a crash. As a result, Mazda is recalling 99,711 examples of the 2014-2015 Mazda6 to have the system's software updated. RECALL Subject : Tire Pressure Monitoring System/FMVSS 138 Report Receipt Date: OCT 27, 2014 NHTSA Campaign Number: 14V675000 Component(s): TIRES Potential Number of Units Affected: 99,711 Manufacturer: Mazda North American Operations SUMMARY: Mazda North American Operations (Mazda) is recalling certain model year 2014-2015 Mazda6 vehicles manufactured October 25, 2012, to October 10, 2014. If the pressures of four of the tires on an affected vehicle gradually drop at the same time, the tire pressure monitoring system (TPMS) may not warn the driver of the drop in pressure. As such, these vehicles fail to comply with the requirements of the Federal Motor Vehicle Safety Standard (FMVSS) No. 138, "Tire Pressure Monitoring System." CONSEQUENCE: A vehicle that is driven with under inflated tires may experience a sudden tire failure, increasing the risk of a crash. REMEDY: Mazda will notify owners, and dealers will update the TPMS software, free of charge. The recall is expected to begin on December 10, 2014. Owners may contact Mazda customer service at 1-800-222-5500. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.

Mazda3 five-door vs. Mazda CX-3

As a talking point, it won't rival North Korea, world hunger or Mideast peace, but the ongoing tug between car and crossover continues to resonate in the hallways of Autoblog HQ. And it might also generate some discussion on Mazda showrooms, where the Mazda3 five-door and Mazda's CX-3 crossover are parked within a few feet of each other. Not only do they enjoy proximity on the showroom, but they enjoy/suffer (your choice, depending on POV) pricing proximity on the window sticker. The Mazda3 five-door is the more mature model of the two, having been introduced to a world market in fall 2003. With a commonsense footprint enclosed by almost-organic, upscale sheetmetal, the Mazda3 – especially in 5-door form – punches well above its weight in the still-nascent hatchback category. With a redesign (third-generation) introduced in 2014, along with a more recent refresh, the newest sedan and hatchback merge Mazda's KODO design philosophy with a responsive platform, available 2.5-liter drivetrain and a comfortable – if not expansive – interior. What the Mazda3 5-door (photo at left) does not give you is the crossover's high hip point, despite having ground clearance almost identical to the CX-3 subcompact crossover. And while the stated passenger volume of the Mazda3 and CX-3 is almost identical, those cubes are arranged differently; the Mazda3 offers an interior package more linear, while the CX-3 is more upright. Mazda's subcompact CX-3 (photo at top) is a more recent entry, having been developed from the Mazda2 architecture and hitting the street two years ago. It sits below Mazda's CX-9 and CX-5 in the Mazda pecking order. And it is tiny, on a wheelbase of just 101 inches and offering an overall length of just 168 inches. It is seven inches shorter than the Mazda3, with a wheelbase five inches shorter. The net effect is a more compressed environment for passengers, along with the very real challenge of fitting something inside – such as a bicycle – even when that something has its front wheel removed. In the city, I like the CX-3's compactness, and relatively unrestricted visibility when compared to the Mazda3's overall length and lower seating. But when both are equipped with their six-speed automatics, and the Mazda3 is spec'd with its available 2.5 liter DOHC four, there's almost no comparison in their performance. With that spec the hatchback has Mazda's well-hyped zoom, while the CX-3 makes do with nothing but a 4-cylinder boom.