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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.

U.S. and Toyota Reach Settlement Over Safety Problems Disclosure

The U.S. has reached a $1.2 billion settlement with Toyota Motor Corp., concluding a four-year criminal investigation into the Japanese automaker's disclosure of safety problems, according to a person close to the investigation. Attorney General Eric Holder, Transportation Secretary Anthony Foxx and U.S. Attorney for the Southern District of New York, Preet Bharara, were announcing the settlement Wednesday morning, said the official, who spoke on condition of anonymity because the official was not authorized to discuss the settlement on the record before the announcement. TOP 5Most Researched Green Cars On AOL Autos 2013 Honda Fit EV MSRP : $36,625 2014 Chevrolet Spark EV MSRP : $26,685 2012 Mitsubishi i-MiEV MSRP : $29,125 2012 Ford Focus Electric MSRP : $39,200 2012 Toyota Prius Plug-in MSRP : $32,000 In a statement early Wednesday, Toyota said it has "cooperated with the U.S. Attorney's office in this matter for more than four years" and had "made fundamental changes to become a more responsive and customer-focused organization, and we are committed to continued improvements." The criminal investigation focused on whether Toyota was forthright in reporting problems related to unintended acceleration troubles. Starting in 2009, Toyota issued massive recalls, mostly in the U.S., totaling more than 10 million vehicles for various problems including faulty brakes, gas pedals and floor mats. From 2010 through 2012, Toyota Motor Corp. paid fines totaling more than $66 million for delays in reporting unintended acceleration problems. The National Highway Traffic Safety Administration never found defects in electronics or software in Toyota cars, which had been targeted as a possible cause. The settlement continues a string of bad publicity for Toyota, which before the unintended acceleration cases had a bulletproof image of reliability. Since the cases surfaced, the company's brand image has been damaged and it has lost U.S. market share as competition has intensified. Last year, Toyota agreed to pay more than $1 billion to resolve hundreds of lawsuits claiming that owners of its cars suffered economic losses because of the recalls. But that settlement did not include wrongful death and injury lawsuits that have been consolidated in California state and federal courts. In December, Toyota filed court papers after a four-year legal battle saying that it's in settlement talks on nearly 400 U.S. lawsuits, but other cases aren't included in the talks.

Are Toyota and Lexus planning to use Mazda's straight-six and new platform?

Japan's Best Car magazine has what appears to be a whopper of a rumor. The mag said it scooped Mazda's development of a straight-six engine that Mazda only revealed in March, the carmaker having buried the information in a financial statement. By way of Lexus Enthusiast and according to Google translate, Best Car writes that as it was speaking to a Toyota source on an unrelated matter, the magazine found out that Mazda's work on the straight-six was predicated on the engine's use in Toyota Group vehicles, which includes Lexus. Here's the account of how the engine and Mazda's coming front-engined rear-drive platform, dubbed "Large Architecture," will make their way to Toyota City: The first appearance for the straight-six, predicted to come in at a hair under 3.0 liters, is the Mazda Atenza/Mazda6 successor coming around 2022. The powertrain will get a 48-volt hybrid system for increased fuel economy, and the automaker's said to be considering a plug-in hybrid version. Toyota's first shot at the platform and the straight-six will be whatever fills the slot of the Japanese-market Mark-X sedan. We once had a version of the Mark-X in the U.S. as the Toyota Cressida. In Japan, it's sold as a rear- and all-wheel drive option to the Camry. The Mark-X is slated to end production in December this year — a "sporty four-door coupe" on Mazda's platform and with Mazda's engine eventually taking its place. Lexus has a number of plans for the components from Hiroshima. The next Lexus IS is said to evolve from the current sedan, using a Lexus V6 but migrating to Toyota's TNGA platform. Best Car says the IS after that, perhaps sometime around 2026, will hop onto Mazda's new platform and use the inline-six engine. Before that, the replacement for the Lexus RC in 2022 will sit on the Mazda platform and get that inline-six. What's more, Lexus will introduce a new model to slot between the $64,750 RC and the $92,950 LC employing Mazda's architecture and engine. Best Car says the model will act as a "next car" for RC owners, but we can't tell if the magazine means a two-door or a four-door coupe; the article also says the Lexus model will compete with the Audi A7. Toyota and Mazda partnered up in 2016 on technology sharing. Best Car's take is that, as was done on the Supra, Toyota is picking up all the tech it can from suitable sources so that it can continue to sell models that don't make sense to develop alone.