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U.S. auto sales fall in July, as Detroit dials back on inventory, rental sales

DETROIT — U.S. carmakers said on Tuesday they continued to slash low-margin sales to daily rental fleets in July as General Motors, Ford and Fiat Chrysler Automobiles struggled to curb a slide in retail sales. July is on track to be the fifth straight month in which the annual pace of car and light truck sales declined from the same month a year ago, in part because of fewer fleet sales, analysts and industry executives said. July 2016 sales hit a strong 17.9-million-vehicle pace. GM said the seasonally adjusted annual sales rate fell to an estimated 16.9 million vehicles in July. At midmorning on Tuesday, GM shares were down 3.4 percent at $34.77, Ford was down 2.8 percent at $10.91, and Fiat Chrysler shares were down 0.3 percent at $12.05 in New York. GM sales dropped 15 percent from a year ago to 226,107 vehicles, as the company cut rental fleet sales more than 80 percent. The automaker said inventories of unsold vehicles at month's end were 104 days, down from 105 days at the end of June. GM has promised investors to reduce inventories to 70 days by year-end. Ford said its July sales dipped 7.5 percent to 200,212 vehicles, as it cut fleet sales more than 26 percent. Inventories fell to 77 days from 79 the previous month. Fiat Chrysler said sales dropped 10 percent to 161,477, as it also cut back sales to daily rental fleets. Among the top Japanese companies, only Toyota reported a year-to-year gain, with sales up 4 percent to 222,057 — just 4,000 units behind GM. Honda sales were down 1 percent to 150,980 — its first-quarter sales continuing to decline in North America but seeing a big increase in China. And Nissan sales fell 3 percent to 128,295. GM, Ford and Fiat Chrysler have cautioned that second-half financial results likely will be lower than first-half results, in part reflecting production cuts in North America and pricing pressures. The automakers this year have been deliberately dialing back sales to rental-car companies, which often generate little to no profit, while struggling to keep retail sales from sagging further, according to industry analysts. Industry consultant LMC cut its full-year forecast for new vehicle sales to 17 million vehicles. Automakers sold a record 17.55 million vehicles in the United States in 2016.

Recharge Wrap-up: Cruz defends ethanol stance, Bloomberg gets EV numbers wrong?

Republican presidential hopeful Senator Ted Cruz is defending his stance against ethanol subsidies in an opinion piece in The Des Moines Register. In the piece, Cruz says he doesn't oppose ethanol, but opposes mandates and subsidies, favoring a "free and fair energy marketplace," and an "'all of the above' policy." "We should embrace all of the energy resources with which God has blessed America: oil and gas, coal, nuclear, wind, solar, and biofuels and ethanol," says Cruz, "But Washington shouldn't be picking winners and losers." To farmers' benefit, Cruz says he would enforce antitrust laws against those who try to keep ethanol out of the marketplace, and fight the EPA's hard blend walls prohibiting higher amounts of ethanol in gasoline. Read Cruz's article at The Des Moines Register, and read more from The Washington Times.Hybrid Cars calls out Bloomberg Business in a post saying it used inaccurate data in a piece highlighting dim plug-in sales. While the Bloomberg article, titled "Plug-in Electric Autos Left Behind in Record Year," accurately points out a slower year for EVs, it claims sales slipped 17 percent in 2015. According to data from Hybrid Cars, that decline was just 2.88 percent. Hybrid Cars claims that Bloomberg lumped a number of PHEVs with regular hybrids when it calculated the faulty data. Read more about the discrepancy and the more realistic picture of EV sales at Hybrid Cars.The National Biodiesel Board has hired Sandra Franco as general counsel. The Georgetown University Law Center graduate gained experience in environmental litigation during her time as a partner at the Morgan Lewis Law Firm. "There isn't an attorney in the country who knows renewable fuels law better than Sandra Franco, and we are thrilled to have her join our team," says National Biodiesel Board CEO Joe Jobe. "Sandra is a tremendously skilled and seasoned attorney who will help us ensure that the US biodiesel industry has a strong voice and expert counsel in Washington as well as on legal and regulatory issues across the country." Read more at Crop Protection News.Nissan and Infiniti will use Microsoft Azure to power the Connect Telematics System (CTS) for the Nissan Leaf and Infiniti cars in Europe. CTS allows a remote connection to the car, enabling customers to perform a variety of functions from afar. This includes adjusting climate control and programming charging from a smartphone.

Japanese automakers ramping production for renewed American sales

The 2011 earthquake and tsunami that struck Japan took quite the toll on the automotive industry in that nation. Not content to lean on that tragedy as excuse for slagging sales, the Japanese automakers are planning on a major production expansion in North America. The aim is to reclaim the market share lost from the Tsunami-based dip, and overcome a dollar/yen exchange rate that makes exporting to America unprofitable.
Following the Tsunami, Japanese automakers ramped up production in their North American facilities to compensate, but according to Automotive News, Nissan, Honda and others have all reported plans for still-further increased production in the year ahead. As part of this ramp-up, Mazda will open a facility in Salamnca, Mexico before March of 2014. Part of that increase in output is 50,000 units of a Toyota-badged compact car, which Mazda will produce.
Other Mexican production facilities opening include a Honda plant, which will open in Spring 2014 in Celaya, and a Nissan plant, set to open later this year in Aguascalientes. Nissan also said that it will need another plant in North America within the next five years. According to Nissan Boss Carlos Ghosn, the company aims to raise its stake in the US market from 8 percent to 10, and adding production will help achieve that goal. Even Mitsubishi is aiming to boost production at its Normal, Illinois plant. Production of the Outlander Sport is currently at 50,000, which Mitsubishi wants to raise to 70,000.