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The next steps automakers could take after sales drop again in April

DETROIT (Reuters) - Major automakers on Tuesday posted declines in U.S. new vehicle sales for April in a sign the long boom cycle that lifted the American auto industry to record sales last year is losing steam, sending carmaker stocks down. The drop in sales versus April 2016 came on the heels of a disappointing March, which automakers had shrugged off as just a bad month. But two straight weak months has heightened Wall Street worries the cyclical industry is on a downward swing after a nearly uninterrupted boom since the Great Recession's end in 2010. Auto sales were a drag on U.S. first-quarter gross domestic product, with the economy growing at an annual rate of just 0.7 percent according to an advance estimate published by the Commerce Department last Friday. Excluding the auto sector the GDP growth rate would have been 1.2 percent. Industry consultant Autodata put the industry's seasonally adjusted annualized rate of sales at 16.88 million units for April, below the average of 17.2 million units predicted by analysts polled by Reuters. General Motors Co shares fell 2.9 percent while Ford Motor Co slid 4.3 percent and Fiat Chrysler Automobiles NV's U.S.-traded shares tumbled 4.2 percent. The U.S. auto industry faces multiple challenges. Sales are slipping and vehicle inventory levels have risen even as carmakers have hiked discounts to lure customers. A flood of used vehicles from the boom cycle are increasingly competing with new cars. The question for automakers: How much and for how long to curtail production this summer, which will result in worker layoffs? To bring down stocks of unsold vehicles, the Detroit automakers need to cut production, and offer more discounts without creating "an incentives war," said Mark Wakefield, head of the North American automotive practice for AlixPartners in Southfield, Michigan. "We see multiple weeks (of production) being taken out on the car side," he said, "and some softness on the truck side." Rival automakers will be watching each other to see if one is cutting prices to gain market share from another, he said, instead of just clearing inventory. INVESTORS DIGEST BAD NEWS Just last week GM reported a record first-quarter profit, but that had almost zero impact on the automaker's stock. The iconic carmaker, whose own interest was once conflated with that of America's, has slipped behind luxury carmaker Tesla Inc in terms of valuation.

Plug In America asks Georgia to not reverse EV incentives

Like Ray Charles, Plug In America's Michael Thwaite has Georgia on his mind. Thwaite is putting out the call on behalf of the electric-vehicle advocacy group to get people to stop the state's plug-in vehicle incentives from going the way of Atlanta Flames. And he's using math that may or may not be funny. Thwaite's public enemy Number One is Chuck Martin (R-Alpharetta), who's pushing legislation (specifically, House Bill 122) to wipe out the $5,000 tax credit (one of the highest among US states). Martin is also said to have more than 60 state legislators backing him up. Thwaite says that the money is well spent, since each electric vehicle keeps more than $2,200 from being spent outside the state by getting folks to charge up through local utilities instead of paying for gas imported from those darned oil-rich nations. Last year, Martin proposed a bill (HB 257) that would cap incentive-generating EVs in the state at about 2,000 units a year, but state legislators ran out of time before taking a vote on it, so the issue got tabled for another year. And that year is almost up. The issue is far from academic, since Atlanta remains a city that generates some of the highest Nissan Leaf sales in the country – largely because of those state incentives. Check out Mr. Thwaite's note below. Don't Let Georgia State Incentives for Electric Vehicles Disappear The state of Georgia has enjoyed tremendous support for electric vehicle adoption from its legislators, but that is at risk. Georgia legislators need to hear your voice in favor of electric car incentives. Chuck Martin (R-Alpharetta) is introducing legislation (House Bill 122) to eliminate the state electric vehicle tax credits of $5,000. He has already amassed more that 60 legislators to support the bill. We need you to let them know that the public supports EVs! Georgia has become a beacon for electric vehicle sales. The tax credit has helped make Georgia the national leader in Nissan LEAF sales, an electric car built here in the US. Please take a moment to complete the action below to ensure that your representative hears your voice to maintain the EV incentives and defeat this bill. Georgia's Public Service Commission member Tim Echols argued passionately for keeping the credits. Aside from the environmental benefits and the positive message sent to millennials about the importance of moving away from polluting fossil fuels, he makes a powerful economic argument.

Nissan considering 200-mile Leaf to take on Chevy Bolt?

With 30,200 units sold, the Nissan Leaf posted its best year ever in the US in 2014. However, Nissan needs to keep looking over its shoulder because the Chevrolet Bolt Concept from the 2015 Detroit Auto Show clearly has success EV in its sights. Chevy claims that for roughly the same price (after incentives) as a Leaf, the future Bolt could offer a 200-mile range. Although, evidence continues to mount that the Japanese brand is hard at work on its next-gen electric hatchback capable of significantly longer driving distances. According to TheDetroitBureau.com, the next Leaf will reportedly debut in about two years and will be offered in a high-output version with 200 miles or more of range. It will all be possible thanks to new lithium-ion batteries with lower weight and higher power density. If accurate, the changes would more than double the model's current EPA-estimated 84-mile range and put the hatchback on sale at roughly the same time as the Bolt's debut, if it happens. "We want to be competitive," said Nissan CEO Carlos Ghosn to TheDetroitBureau.com during the Detroit Auto Show. "It may have even more range." In another speech, he also predicted that the company's EVs would become even more affordable. The statements are hardly a surprise from the company boss. Ghosn is a big proponent of electric power over other zero-emissions alternatives because it is cheaper overall, among other reasons. The latest speculation about battery innovations from the next Leaf actually echoes earlier leaks about the car. Ghosn suggested during a Japanese TV interview that the range could double for the new generation, and an unnamed engineer believed that 250 miles of driving was at least possible. Featured Gallery 2013 Nissan Leaf View 55 Photos News Source: TheDetroitBureau.comImage Credit: Nissan Green Nissan Technology Hatchback Electric Chevy Bolt