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Trucks, SUVs drive U.S. October new vehicle sales

DETROIT — Major automakers posted mixed U.S. new vehicle sales in October on Wednesday, though America's love affair with high-margin pickup trucks and SUVs remained in full bloom as larger, pricier vehicles fared better than passenger cars. Auto industry publication WardsAuto put the seasonally-adjusted annualized rate (SAAR) for light vehicle sales in October at a robust level of 18 million units. But after a long boom cycle, carmakers are still ill-prepared for the slight decline in sales anticipated for full-year 2017 and have taken too few steps to trim production, said Doug Mehl, a partner in consultancy A.T. Kearney's automotive practice. "When you make a new vehicle, you have volume assumptions tagged to it, and who wants to be the guy who says, 'I'm going to make less of this really cool model'?" Mehl said. "But eventually the market is the reality, and it's going to force companies one way or other here." General Motors GM reported a sales drop of 2.2 percent for the month, with consumer sales down 6.6 percent. But sales of high-margin pickup trucks, sport utility vehicles and crossovers all rose. GM also cut its inventory of unsold vehicles — a source of concern for the market — slightly. The automaker has worked to reduce its volume of excess inventory, including through significant production shutdowns in the third quarter. GM had said its inventory would rise in October. "We are heading into the fourth quarter with good momentum, thanks to a strong U.S. economy and very strong pickup and crossover sales," said Kurt McNeil, GM vice president for U.S. sales operations. GM slightly reduced consumer discounts as a percentage of average transaction prices to 13.5 percent, from 13.7 percent in the third quarter. Industry experts believe consumer discounts above 10 percent of the average transaction price are unhealthy as they erode resale values and are unsustainable in the long term. Consultants J.D. Power and LMC said last week that based on preliminary October sales numbers, discounts have exceeded 10 percent in 15 of the past 16 months. Ford The U.S. auto industry posted record sales of 17.55 million vehicles in 2016. New sales received a strong boost in September as consumers replaced vehicles damaged in southeast Texas by Hurricane Harvey the previous month. Full-year 2017 sales are expected to be slightly lower than 2016.

Infiniti teases QX Monograph concept for Pebble reveal

Infiniti is planning on showing a new concept car during Monterey Car Week called the QX Monograph. In case you lost track of time, that’s next week, as the concept car will officially be unveiled on Thursday, August 17. Infiniti is planning on holding a press conference at The Lodge at Pebble Beach where Alfonso Albaisa, senior VP of design, will present the vehicle. Infiniti says the new concept will showcase the “future direction of InfinitiÂ’s design direction.” A single teaser image gives us a glimpse of the grille and the Infiniti logo on the front. There isnÂ’t a lot Infiniti is saying about the QX Monograph yet, but weÂ’re told it features “digital piano key” lighting, bold proportions and the aforementioned double-arched grille. Of course, since itÂ’s a QX model, we should also expect it to be an SUV concept and not any other body style. Beyond the concept car, Infiniti says itÂ’s bringing never-before-seen quarter-scale design models from Nissan archives to display publicly. In total, four of these models will be shown, including the 1916 DAT 41, 1966 Prince Skyline 2000-GTB, 1970 Nissan Skyline H/T and the 1995 Nissan Skyline GT-R. Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Mercedes to build CLA at Nissan plant in Mexico [w/poll]

Volkswagen may have paved the way for American customers to get used to the idea of German cars produced in Mexico, but it won't be the only one for long. BMW is said to be considering production of the 1 Series, 3 Series and Mini south of the border, Audi is working on its own factory in San Jose Chiapa, and now Mercedes-Benz is reported to be following suit as well. Only instead of building its own plant, Daimler is tipped to use a Nissan factory in Aguascalientes.
According to a report in Manager Magazin recently cited by Automotive News Europe, that's where Mercedes is considering building the GLA, CLA and another A-Class sedan. Just what the point would be of another sedan based on the A-Class in addition to the CLA, we're not sure, but if Benz can produce the larger CLS in addition to the E-Class and S-Class sedans, we suppose there'd be room for an A-Class sedan alongside the CLA as well.
We're still waiting on confirmation and comment from Mercedes on the prospect, but one way or another, the increase in Mexican production of German automobiles seems to be a foregone conclusion.