2013 Volkswagen Eos Komfort on 2040-cars

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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.

New info on how VW, Porsche, Audi V6 TDI engine cheat works

The German newspaper Bild am Sonntag is reporting that US investigators have found three pieces of software that work in concert to turn off the emissions control equipment in certain diesel models after a set period of time. The engine in question, the 3.0-liter TDI turbodiesel, was found in certain Volkswagen Touareg, Audi Q7, and Porsche Cayenne models – the sale of which was suspended in the US late last year. Since most emissions compliance testing takes around 20 minutes, the software in the three VW Group models shuts off the emissions control equipment after 22 minutes, a straightforward end run around the testing. Remember that the 3.0-liter TDI engines aren't included in the big buyback and recall program announced for the smaller 2.0-liter, four-cylinder TDI engines. The 3.0-liter engines will likely get their own program, but we don't know when to expect it or exactly what it will look like. Last month, California rejected a proposed fix for the larger TDI engines, and VW went back to the drawing board. Since the company is unlikely to create two fixes, one for California and one for the rest of the nation, the company can't really proceed until they figure out a solution California will accept. The EPA hasn't officially commented on the report, and we don't know how Bild am Sonntag came across the information, but we'll be closely watching what emerges after this report. Related Video:

Recharge Wrap-up: First VW e-Golf in US up for auction, meet Project Ain't Fuelin'

Volkswagen is auctioning the first e-Golf in the US to raise money for Global Green USA. The auction is live now, and bidding goes until 3:30 pm Eastern on October 29. Global Green USA will use the proceeds to help find solutions to climate change, and the winner will get to enjoy emissions-free driving before the car e-Golf goes on sale in November. If you don't live in or near California, Connecticut, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, Rhode Island, Vermont or Washington DC, you might want to sit this one out, as the car will only be available to pick up at dealers in those initial launch states. Go bid now, or learn more in the press release below. Berlin, Germany will use Solaris electric buses for a complete bus line in 2015. The downtown line will run 3.8 miles between Zoologischer Garten Station and Sudkreuz. The transport operator Berliner Verkehrsbetriebe (BVG) will use four of the Solaris e-buses for the test, each about 39 feet long. The buses use a 200-kilowatt inductive charging system at the ends of the line to recharge in just a few minutes. The government-funded test runs through 2016, but BVG pans to use the electric buses beyond that timeline. Read more at Green Car Congress. The American Petroleum Institute (API) is worried that the Obama administration will use ethanol requirements to influence a Senate race in Iowa. In the midst of a close race against Republican Joni Ernst, Representative Bruce Braley, the Democratic candidate, is urging Obama to reject a cut in the Renewable Fuel Standard. The November election approaches, meanwhile the EPA continues to delay issuing an ethanol requirement for the year, with or without its proposed 16-percent reduction. Rejecting the cut could help get farmers and ethanol producers on the side of Braley. "We are very concerned that the signals we are seeing from the administration is that the political calculations are outweighing sound fuels policy," says API's Bob Greco. Read more at Businessweek. Project Ain't Fuelin' aims to fix up old cars to return them to original fuel economy, and then surpass it. Episode 3 of Valvoline's Under The Hood video series features Daniel Gray of MPGomatic, who is doing just that to a 1999 Honda Civic HX Coupe. He aims to get 50 mpg out of the old Civic by tuning it up, tinkering with the aerodynamics, switching to more efficient tires and other modifications.