1995 Toyota Supra Turbo on 2040-cars

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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.

Toyota recalls 52k units of 2011-2012 Avalon for potential short circuit

Toyota is issuing a recall for roughly 52,000 examples of its 2011 and 2012 Avalon sedans in the US because a possible short circuit in the wiring for audio system's subwoofer may cause a fire. According to Toyota, it's possible for the subwoofer's wires to move out of position if contacted by cargo in the trunk. If one of the wires then contacts the metal frame of the speaker, it could trigger a short circuit. "If this occurs, the subwoofer could overheat, increasing the risk of a fire," according to the automaker. "There were two reports of thermal events – no outright fires," said Toyota spokesperson Cindy Knight to Autoblog. Toyota reports there are no reports of injuries, fatalities or crashes from this problem. Dealers will repair this problem at no cost, but until then, they will immediately disconnect the rear subwoofer as a precaution for owners. The recall notices will be sent out in mid-February, according to Knight. TOYOTA RECALLS CERTAIN 2011-2012 MODEL YEAR AVALON VEHICLES TORRANCE, Calif., January 28, 2015 – Toyota Motor Sales, U.S.A., Inc., today announced plans to conduct a safety recall of approximately 52,000 Model Year 2011-2012 Avalon sedans. In the involved vehicles, cargo could contact one of the audio system subwoofer wires located inside the trunk, and move the wire out of its normal position. If one of these wires contacts the metal frame of the subwoofer, it may result in an intermittent short circuit. If this occurs, the subwoofer could overheat, increasing the risk of a fire. Toyota is not aware of any crashes, injuries, or fatalities caused by this condition. Owners of the involved vehicles will receive a notification by first class mail. Toyota dealers will provide a repair for the audio system. Until the remedy is available, as a precaution, Toyota dealers will disconnect the rear subwoofer. Detailed information is available at www.toyota.com/recall and by calling Toyota Customer Service at 1-800-331-4331. ###

Fewest vehicles ever found eligible for Most American survey

Once again, the most American car on the market is from an American brand. The Ford F-150 retained its number one spot in Cars.com's annual survey of the most American vehicles, trumping the Toyota Camry, which remains at number two.
Ford taking the top spot is small consolation, though, as the Detroit Three aren't too well represented here. General Motors scored a win at number seven, with the Chevrolet Corvette, while Chrysler squeaked in at number ten, with the Dodge Viper. Outside of those three vehicles, Toyota and Honda dominate the top ten.
What's most remarkable, though, is that there were so few cars available for this year's list.