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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.

Federal prosecutor fights bail for men accused of helping Carlos Ghosn escape

BOSTON — A U.S. prosecutor on Monday urged a judge to keep a former Green Beret and his son locked up as Japan prepares to formally seek their extradition on charges that they helped former Nissan boss Carlos Ghosn flee the East Asian country. Assistant U.S. Attorney Stephen Hassink argued during a virtual hearing that Michael Taylor and his son, Peter Taylor, have a "clear and present reason to flee" after being accused of helping Ghosn, who faces financial misconduct charges in Japan. "They're actually some of the best defendants that IÂ’m sure this court has seen positioned to actually succeed in that flight," Hassink said. He argued the men, who have been held without bail since being arrested in Massachusetts last month, helped smuggle Ghosn out of Japan in a box on Dec. 29, 2019. Ghosn then allegedly fled to Lebanon, his childhood home, which has no extradition treaty with Japan. Ghosn, Nissan's former chief executive, was charged with engaging in financial wrongdoing by understating his compensation in Nissan's financial statements. He denies wrongdoing. The Taylors' lawyers countered that had they wished to avoid prosecution they could have remained in Lebanon, where they were in January when Japan said it would seek their arrest, rather than return to Massachusetts. "If he's an expert of escape, he would not have returned to the United States," Robert Sheketoff, a lawyer for Michael Taylor, argued. He and other defense lawyers argued the case against their clients was flawed and that Michael Taylor, a U.S. Army Special Forces veteran and private security specialist, is at heightened risk of complications from COVID-19, which could spread in the jail. The hearing itself was held through a Zoom videoconference because of the coronavirus pandemic. U.S. Magistrate Judge Donald Cabell said he hoped to rule "as quickly as I can." Related Video:

Nissan and Infiniti recall 1.2 million vehicles because backup camera might go blank

Nissan North America has issued a recall for more than 1.2 million vehicles due to the ability to change backup camera settings to the point where there is no image in the display. The recall, which was filed with NHTSA on Sept. 12, 2019, includes cars, trucks, crossovers, SUVs, vans, and coupes across both the Nissan and Infiniti lineups.  Reported by Automotive News, NHTSA recall No. 19V654000 affects a total of 1,228,830 vehicles across two brand lineups and more than two dozen models. It includes the 2018-2019 Nissan Altima, Frontier, Kicks, Leaf, Maxima, Murano, NV, NV200, Pathfinder, Rogue, Rogue Sport, Sentra, Titan, Versa Note, Versa sedan; and 2018-2019 Infiniti Q50, Q60, QX30 and QX80. It also lists the 2019 Nissan GT-R and Taxis, as well as the 2019 Infiniti QX50, QX60, Q70, and Q70L. According to the recall, it is possible to adjust the backup camera and display settings "such that the rearview image is no longer visible and the system will retain that setting the next time the vehicle is placed in reverse." Although this type of occurrence would be extremely rare and most likely a mistake made by the driver, its real possibility means all of these cars are technically breaking the law. Federal Motor Vehicle Safety Standard (FMVSS) No. 111, "Rear Visibility," says so. According to Automotive News, this recall is not limited to the United States and also affects vehicles in Canada, South Korea, and Israel. The recall begins Oct. 19, 2019, and Nissan will provide affected customers with a free software update to fix the issue.