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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.

Electric turbos promise big performance and efficiency gains in the near future

An electric turbo system boosts efficiency between 15 and 20 percent, according to Audi.
Turbochargers, like acoustic guitars, use moving air to create magic. And electric turbochargers, like electric guitars, provide the ability to amp up that magic to amazing new levels.

Audi S1 nearly ready to rocket euros out of your pocket

Audi was out testing its upcoming S1 on the streets of Germany when our trusty spy photographers snapped the new, all-wheel-drive hot hatch that's set to succeed the limited-edition A1 Quattro.
Unlike the A1 Quattro, the S1 should sport a much less aggressive look overall. As shown in the spy shots, its wheel wells lack the meaty flairs of its predecessor while its rear wing is much more subdued. The wheels are more in line with what we expect from Audi's S models and its higher ride height is more conducive to common things like steep driveways and speed bumps that the 333-unit A1 Quattro might not encounter.
According to our spies, the S1 should hit the European market with anywhere from 220 to 250 horsepower, making it considerably more potent than competitors like the Ford Fiesta ST or Polo GTI from its parent company, Volkswagen (although it'll likely arrive at a considerably higher price than either of those pocket rockets). On the high end, that's roughly equal to the 252 ponies generated by the 2.0-liter, turbocharged four in the A1 Quattro