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Mixed sales results, but automaker stocks rise on need for cars in Houston

DETROIT — The Big Three Detroit automakers on Friday reported better-than-expected August sales and issued optimistic outlooks for demand as residents of the Houston area replace flood-damaged cars and trucks after Hurricane Harvey, sending their stocks higher. General Motors, Ford and Fiat Chrysler posted mixed August U.S. sales, with GM up 7.5 percent and Ford and Fiat Chrysler down. Japanese automaker Toyota improved sales by nearly 7 percent, while Honda fell 2.4 percent. Still, analysts focused on the potential for Detroit automakers to cut inventories and stabilize used vehicle prices as residents of Houston, the fourth largest city in the United States, are forced to replace tens of thousands, perhaps hundreds of thousands, of vehicles after the devastation from Hurricane Harvey. Mark LaNeve, Ford's U.S. sales chief, told analysts on Friday that following Hurricane Katrina in 2005 "we saw a very dramatic snapback" in demand. That said, Ford sales fell 2.1 percent in August. It sold 209,897 vehicles in the United States, compared with 214,482 a year earlier. Sales were down 1.9 percent in the Ford division and off 5.8 percent at Lincoln. Demand was down for cars, crossovers and SUVs. It was not clear how many vehicles in the Houston area will be scrapped, LaNeve said, saying he had seen estimates ranging from 200,000 to 400,000 to 1 million. Ford's Houston dealers may have lost fewer than 5,000 vehicles in inventory, he said. Ford is the No. 1 automaker in the Houston market, with 18 percent share, according to IHS Markit. The company plans to ship used vehicles to Houston dealers and has "every indication we would have to add some production" of new vehicles to meet demand, LaNeve said. Investor concerns about inventories of unsold vehicles and falling used car prices have weighed on Detroit automakers' shares most of this year. Now, automakers can anticipate a jolt of demand from a big market that is a stronghold for Detroit brand trucks and SUVs. "It's got to be a positive for the industry," LaNeve said. Investors appeared to agree. GM shares rose as much as 3.3 percent to their highest since early March. Ford increased 2.8 percent at $11.34, and Fiat Chrysler's U.S.-traded shares were up 5.2 percent $15.91, hitting their highest in more than five years. GM reported a 7.5 percent increase in U.S. auto sales in August, helped by robust sales of crossovers across its four brands.

2020 Hyundai Palisade vs. Ascent, Pilot, Highlander and CX-9: How they compare on paper

We've finally had our first drive of the 2020 Hyundai Palisade and found it to be well-equipped for sales success. It nails the formula that some of the most successful three-row crossovers have, the aforementioned seating capacity, high driving position, all-wheel-drive availability and a V6 engine. Of course, it also offers a unique and menacing-looking exterior that ought to stand out in the parking lot. To dig deeper into how it compares to other three-row family crossovers, we've fired up the old Autoblog Comparo Generator 3000 (™) and lined the all-new 2020 Palisade up against the 2019 Subaru Ascent, 2019 Honda Pilot, 2019 Toyota Highlander and 2019 Mazda CX-9. Besides being two of last year's best-selling three-row SUVs, the Pilot and Highlander are also the closest in general concept to the new Palisade, while the Ascent and CX-9 also offer a comparable turbocharged four-cylinder powertrain. The CX-9 is also one of our favorites in the segment, and the Ascent is one of the newest entrants on the scene. There are of course numerous other worthy contenders, including the Chevrolet Traverse, GMC Acadia, Volkswagen Atlas, Nissan Pathfinder, Hyundai Santa Fe and the best-selling Ford Explorer, so if you want to see their specs, check out the Autoblog compare tool. Performance and fuel economy The Subaru, as is so often the case, is the oddball. It has a 2.4-liter turbocharged horizontally opposed four-cylinder (aka a flat-four or a boxer-four) that produces a comparatively modest horsepower rating, but a greater amount of torque. That's typical for turbocharged engines such as Mazda CX-9's turbo inline-four that produces 250 horsepower on premium fuel (227 hp on 87 octane) and 310 lb-ft of torque (the VW Atlas also offers a base turbo-four). The Hyundai, Honda and Toyota, meanwhile, go about it the old-fashioned way, with naturally aspirated V6 engines displacing 3.8 liters in the Hyundai, and 3.5 liters with the two Japanese crossovers. The Toyota and Hyundai lead the pack in horsepower, with the Toyota taking top honors by just 4 horses. The Honda weighs less, though, so their acceleration should be comparable. The Subaru actually accelerates on par with its V6-powered competitors, probably due in part to its continuously variable transmission. The fuel economy trophy goes to the Ascent.

Toyota recalls pre-collision system on Avalon and ES models

Toyota is recalling 31,000 US examples of the 2013-2015 Avalon, Avalon Hybrid, Lexus ES350, and ES 300h because the Pre-Collision System could potentially cause an accident. According to the company, it's possible for the safety aid to misidentify a steel joint or plate in the road as a hazard and apply the brakes. The sudden, unexpected activation could lead to a crash. Toyota spokesperson Cindy Knight told Autoblog that the company has reports of two accidents in the US related to this issue, and there are also two alleged injuries. The company has no reports of fatalities. Toyota is taking a serious approach to deal with this problem. First, the company plans to disable the system on these sedans. Once the parts are available, dealers will replace the system with improved components. The company doesn't yet know when these repairs will begin, but owners should receive notification of the recall in November, according to Knight. Toyota isn't alone in needing to tweak safety equipment. Ford faced a similar issue when the company recalled 36,857 examples of the 2015 F-150 because passing a large, reflective semi could inadvertently activate the collision warning system. An update for the adaptive cruise control module software fixed the problem. TOYOTA RECALLS CERTAIN AVALON AND LEXUS ES VEHICLES TORRANCE, Calif., November 3, 2015 – Toyota Motor Sales, USA, Inc. today announced that it is conducting a safety recall of approximately 31,000 Model Year 2013-2015 Avalon, Avalon Hybrid, Lexus ES350 and ES300h sedans. In the involved vehicles, under certain situations, the PCS (Pre-Collision System) could interpret a steel joint or plate in the roadway as an object that triggers PCS activation. If this occurs, the PCS warning buzzer sounds and the system may apply the service brake automatically. Unexpected braking could increase the risk of a crash. For all involved vehicles, the PCS function will be disabled as an interim remedy. As the permanent remedy, Toyota dealers will replace PCS components with improved ones. Information about automotive recalls, including but not limited to the list of involved vehicles, is subject to change over time. For the most up-to-date Safety Recall information on Toyota, Lexus or Scion vehicles, customers should check their vehicle's status by visiting toyota.com/recall and entering the Vehicle Identification Number (VIN). Safety Recall inquiry by individual VIN is also available at the NHTSA site: safercar.gov/vin.