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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.

J.D. Power study identifies top seats for your tush

File under News your fanny can use: The seating systems in the Ford Escape and Edge, the Audi A3, Chevrolet Cruze, Kia Cadenza, Porsche Cayenne and Toyota Tundra received top marks in a new J.D. Power study on seating and seat belt quality and satisfaction. The J.D. Power 2017 Seat Quality and Satisfaction Study asked more than 77,000 new owners and lessees of 2017 model-year cars and light trucks to rate their vehicle's seats and seat belts within the first 90 days of taking ownership. The survey is broken up into seven vehicle segments and scored on total seat problems per 100 within each segment, with awards presented to the seating system supplier. Canadian auto supplier Magna won three of seven first-place awards for its seating systems in the A3, Escape and Edge. Ireland-based Adient got top marks for its seats in the Cadenza and Cayenne. Lear Corp. won for the Cruze, and Avanzar Interior Technologies scored highest for seats in the Tundra. J.D. Power says its study is intended for automakers and suppliers with quality and satisfaction information to be used in developing and marketing seating systems. "But the results are just as interesting to a consumer audience," the company says. "After all, some drivers spend a considerable amount of time behind the wheel, and it's helpful to know which vehicles offer the most comfortable seats for those long commutes." Ain't that the truth. Ford was the only automaker whose seat systems, both manufactured by Magna, received top honors in two segments: the Escape for mass-market compact SUV and the Edge for mass-market midsize/large SUV. J.D. Power says it used 22 attributes to measure seat quality, three measures of seat belt quality and 12 to measure satisfaction. Awards were presented to the seating suppliers. Related Video: Image Credit: Audi Auto News Design/Style Audi Chevrolet Ford Kia Porsche Toyota Safety JD Power seats

VW has received several tentative bids for Ducati

Italy's Benetton family is vying with motorbike firms and buyout funds for control of Italian motorcycle brand Ducati, which is being sold by Germany's Volkswagen, sources involved in the process told Reuters. Volkswagen, whose Audi division controls Ducati, has received several tentative bids with the Benetton family's investment vehicle Edizione Holding valuing the Monster motorbike maker at $1.2 billion, one of the sources said. As well as Edizione Holding, U.S. buyout fund Bain Capital, which owns a stake in Ski-Doo snowmobiles maker BRB, and two Indian motorbike firms, Eicher Motors and Bajaj Auto, have also bid for Ducati, the sources said. Indian carmaker Eicher controls Royal Enfield, a motorcycle brand established in 1893 which ranks as one of the oldest. Strategic bidders also include U.S. automotive firm Polaris Industries, which earlier this year said it would wind down its struggling Victory Motorcycle brand. A shortlist of bidders for a second stage of the auction could be selected as soon as Saturday, two of the sources said. Volkswagen adviser Evercore has a long list of bidders including private equity funds such as Ducati's previous owner Investindustrial, CVC Capital Partners, Advent and PAI, all hoping to outbid industry players, the sources said. If it gets to the second round, Edizione Holding could seek to form a consortium with a financial investor, two of the sources said, in a bid to secure control of Ducati, whose racers have won the Superbike world championship 14 times, with Carl Fogarty and Troy Bayliss its most successful riders. Audi, Edizione Holding, Investindustrial, Advent and PAI declined to comment, while the other interested groups were not immediately available for comment. PRICING CHALLENGES For some buyout funds, Ducati's valuation of up to $1.4 billion – which sources said is based on a multiple of more than 10 times its core earnings of roughly 100 million euros – is a tall order as they lack the synergies that some motorbike makers could achieve. But Investindustrial founder Andrea Bonomi, who sold Ducati to Audi for about 860 million euros in 2012, is serious about a comeback, one of the sources said. China's Loncin Motor was among a group of industry players that initially showed interest in Ducati, alongside Harley-Davidson. The latter has, however, decided against making a bid due to Ducati's price tag, while it could not be established if Loncin Motor had carried on bidding.

Formula E is on track financially, with NYC race coming up

LONDON - Formula E could be breaking even already were it not investing for the future, chief executive Alejandro Agag said on Monday after the electric motor racing series reported continuing losses in its latest annual accounts. Accounts filed at Companies House showed Formula E Operations Ltd reduced its operating loss to 33.7 million euros ($38.32 million) at end-July 2016, a period covering its second season, from a previous 62.7 million. Net liabilities rose to 107.2 million euros from 72.1 million, while total revenues reached 56.6 million from a previous 19.7 million. "Everything is going according to plan," Agag, whose city-based series will be racing in New York for the first time on July 15 and 16, told Reuters in an interview at his London offices. "Actually we are doing incredibly well financially according to our plan. "We could have broken even this year but we decided to invest more in marketing and promotion. We decided to add races like the one in New York, which is in year one a race which is costing, we have significant capital expenditure." "It's really up to us when we want to go to break even or not. We could be in break-even now, we could be in break-even next season but we may decide to invest more in marketing and promotion." Agag said the shareholders, including John Malone's Liberty Global and Discovery Communications, were supportive of the strategy and the series had attracted more investors, sponsors and car manufacturers. The New York races will be held in Brooklyn's Red hook neighborhood, with lower Manhattan and the Statue of Liberty as a backdrop with technology partner Qualcomm securing the naming rights. MANUFACTURER INTEREST Agag, whose series plays down competition with Liberty Media-owned Formula One, said more carmakers were set to join a series increasingly aligned with their commercial focus. "I think Formula E has become the preferred destination for manufacturers and there are a few reasons for that," said the Spaniard. "Obviously, one is that it is electric and manufacturers are more and more focusing on electric cars...and we are the only platform really to help them promote that technology and those types of cars. "And second, because of the cost. The cost of the team in Formula E is very moderate." Whereas top Formula One teams can burn through $300 million a year, as can the likes of Toyota in the World Endurance Championship, the budgets of successful Formula E teams are between 10 and 15 million.

New Audi R8 Spyder V10 Plus is a topless brute

If the "normal" 540-horsepower R8 Spyder isn't doing it for you, the wait is over. Audi has upped its convertible, mid-engined Huracan sibling to Plus spec, which means the FSI V10 gets a whopping 70-horsepower bump, all the way up to 610. Plus, like its lowlier sibling, you get a power folding soft top that goes up or down at up to 31 mph. But wait, there's more! The normal R8 Spyder can hit 60 miles per hour in just 3.5 seconds, according to the manufacturer, while the new one will hit 62 mph in 3.3 seconds. (Since the first specs we have are for the European version, we get 0-100 km times rather than 0-60 mph times. It's clear the V10 Plus is notably quicker.) No matter where you buy one, each V10 Plus will rev out to 8,700 rpm. Top speed increases slightly, to 203.8 mph – much faster than you'd want to go with the top down, surely. The rest of the powertrain is standard R8. There's a seven-speed S-tronic dual-clutch gearbox, the only transmission available, and Quattro all-wheel drive standard. Like the standard R8, it can send up to 100 percent of its power to either axle in extreme situations, and there's a rear differential locker for added traction. While a variable-assist steering rack is an option, the standard steering box is an electromechanical unit. Inside and out, there's a lot of exotic stuff. Optional Audi laser headlights and standard Audi virtual cockpit tick the box for Euro technophiles, while diehard Audi Sport enthusiasts will appreciate the carbon fiber diffuser that adds up to 220 pounds of downforce to the package. Speaking of pounds, that top weighs 97 pounds, but the total package weighs 55 less than the regular R8 Spyder. That weight savings is due to lightweight bucket seats, carbon ceramic brakes (15 inches up front, 14 in the back), and lighter alloy wheels. The cars will be delivered in Europe in late summer. We'll know more about US-market cars soon, surely.

See the new Audi A8 early in Spider-Man: Homecoming

Audi is moving beyond being the primary car provider for Tony Stark in the Iron Man films, and is taking a major role in the upcoming Spider-Man: Homecoming film. Though product placement is generally obnoxious, at least this placement will give car enthusiasts a sneak peek at the new Audi A8. The car is slated for a full debut on July 11, but Audi says the car appears in Spider-Man, which comes out much sooner on June 28. Though the car has yet to be fully revealed, we know it will have a unique 48-volt electrical system and semi-autonomous driving technology. Audi says that some of that semi-autonomous technology will be on display in the film. As cool as that may be, we're concerned about other Audi placement in the film. Apparently an R8 convertible will reprise its role as Tony Stark's daily driver, which makes sense, but Peter Parker will be driving a TTS Roadster, which makes much less sense. In case you weren't aware, Peter Parker is a lower-middle class high school student, so unless there's a plot twist in which he comes into a lot of money suddenly, a new TTS isn't something we'd expect to see him drive. Audi doesn't give much context for the TTS's appearance, so maybe the friendly neighborhood Spider-Man borrows (or joyrides in) the Audi at some point. Related Video: Image Credit: Audi TV/Movies Audi Convertible Luxury Performance Sedan

Essentially sporty | 2017 Audi A4 Quattro Quick Spin

Two boxes checked on the options list set our long-term Audi A4 2.0T Quattro Prestige apart, dynamically, from the rest. One is the Sport Package, and namely the sport suspension with its lowered ride height. The other is the 19-inch wheel package, which includes 245/35 summer tires. The A4's sport suspension is taut without being rough. The car feels as though it's gliding over the road, but some of the chop makes its way into the cabin. It mostly isn't bothersome, but you can feel – and especially hear – any larger imperfections you happen to hit with one the tires. Our car's 19-inch wheels, with their low sidewalls, amplified the potholes, too. Largely, though, it's comfortable and supremely smooth if the road's not all torn to heck. The sport suspension does an excellent job of eliminating squat and dive, and side-to-side body roll, which aids comfort. That ride makes for really smooth sailing in your daily driving duties, especially since the rest of the car feels so civil. The transmission works smoothly and seamlessly in the background in automatic mode. We do notice some of the gear changes if only because we're tuned into how impressively smooth and quick they are. On its own, the transmission tends to shift low in the rev range so you don't get a lot of engine noise with normal driving. We know that there's some athleticism hiding under this car's preppy facade when we look down at the speedometer and realize we're going quite a bit faster than it feels. It's so well composed, though, that we'd be perfectly okay with putting our grandmother in the passenger seat without feeling like we were going to freak her out if we were to happen to exceed the posted speed limit. But after dropping Grandma off, it's time to put the car into Dynamic mode (tightening up steering and ramping up the throttle behavior) and switch the gear lever from D to S. Using the paddle shifters on the Our personality and that of the car changed, becoming more aggressive. back of the steering wheel, the A4 transforms into a truly engaging driving machine. It shifts very quickly, and the sound of the engine becomes more noticeable in part because you can rev it higher, but also because you're more tuned into it. Upshifts and downshifts happen in an instant, to help make full use of engine's sweet spots.

Porsche accused of using steering inputs to cheat on emissions tests

Last week, the German transport authority KBA announced it was investigating Porsche and Audi for cheating on emissions tests. Wirtschaftswoche, a German economic publication, says the KBA's investigation focuses on a system that uses steering inputs to determine whether or not the car is being tested. While Audi has recalled 24,000 models, Automotive News reports that currently Porsche denies any wrongdoing. According to KBA, if the affected cars measured a steering input of 15 degrees or more, they would emit excess nitrogen oxide emissions. It's important to note that this is different than Volkswagen diesel CO2 emissions. The cars broke European strict emissions standards, so it's unclear what impact this has on cars in the US. Audi has recalled the A7 and A8, though it's unclear which Porsche models the KBA is investigating. Fifteen degrees is a small amount of steering input. The wheel can move that much just to move around a pothole or bump in the road. Essentially, if you're driving, you're moving the wheel at least 15 degrees in one direction or the other. If these allegations turn out to be true, it's going to be another blow to Volkswagen, Audi, and Porsche. While public trust in Volkswagen is supremely low, for the most part, Porsche's image has remained fairly clean. NOx emissions don't have as big of a long-term effect as CO2, though they're still bad for humans. Related Video: News Source: Wirtschaftswoche, Automotive News Government/Legal Green Recalls Audi Porsche Emissions

Munich prosecutors expand Audi investigation

Munich prosecutors said they have widened an investigation at Audi to examine the carmaker's sales in Germany and elsewhere in Europe after the federal government accused the Volkswagen division of cheating on emissions tests in its home market. Audi on Thursday recalled around 24,000 older A7 and A8 models in Europe, 14,000 of which were sold in Germany, to update transmission software, which it said was causing nitrogen oxide (NOx) emissions to exceed EU limits. Munich prosecutors have been investigating Audi on suspicion of fraud and criminal advertising in the United States where parent Volkswagen's emissions scandal broke in September 2015. They have expanded the inquiry to include vehicle sales in the brand's home region, a spokesman for prosecutors said. Audi said late on Thursday that it would continue to fully cooperate with authorities and Germany's KBA motor vehicle authority, which the carmaker had notified about the latest emissions irregularities. The affected Audi models with so-called Euro-5 emission standards, and built between 2009 and 2013, emit about twice the legal NOx limits when the steering wheel is turned more than 15 degrees, the German transport ministry said. Prosecutors said the suspicion in the Audi investigation still centered on fraud, adding they have not yet received updated information from the KBA on the situation in Germany. Their investigation came to a head in March when prosecutors searched Audi's headquarters in Ingolstadt in connection with the emissions scandal, as well as a second German plant and subsequently even the law firm that VW had hired to clear up dieselgate.Related Video: Government/Legal Green Audi Emissions volkswagen diesel

Peek into Audi Q8/SQ7 interior: Fewer buttons, more screens

Our spy photographers have had plenty of luck shooting the flagship Audi Q8 SUV in trials at the Nurburgring. In the latest encounter, the exterior reveals no more than in previous shots, as you'll see compared with the previous exterior gallery below. What's new this time: We get a look inside. Seen with the doors open, it appears the Q8 will get frameless windows. The photographer also managed to get a glimpse into a SQ7-based Q8 to view the new controls and displays. That is, fewer controls, more displays. The Q8 is set to share not just the platform but also the engines with the Q7 with one possible exception. There's a rumor that the possible RS Q8 could get a twin-turbo 4.0-liter V8 delivering over 600 horsepower. - the same engine said to be destined for its Italian cousin, the Lamborghini Urus. The Audi Q8 is expected to go on sale in 2018. Related Video: