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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.

Buick tops in Consumer Reports' annual brand rankings

Buick is the first US-based automotive brand to crack the top 10 in Consumer Reports magazine's annual brand report cards. US automakers also placed three vehicles on the magazine's list of "top picks" for vehicles, the first time that's happened in 17 years. The rankings were unveiled Tuesday in the magazine's annual auto issue. Buick placed seventh in the brand rankings. But the brand rankings and top picks still were dominated by Japanese and German manufacturers, with Lexus, Mazda, Toyota, Audi and Subaru taking the top five brand spots. The magazine calculates each brand's overall score with a composite of its vehicles' road-test scores and reliability scores for each model in its annual survey of subscribers. It's the third year for the brand rankings. Porsche placed just ahead of Buick at number six, while Honda, Kia and BMW rounded out the top 10 brands. Mercedes-Benz, Acura and Infiniti all suffered precipitous declines in their rankings due to unreliable new models or poor road test scores. Mercedes fell out of the top 10 to 21st, while Acura dropped from number two to 11 with an unimpressive test of the new RLX sedan, the magazine said. In the model rankings, the top overall finisher was California-based Tesla's Model S electric car, for the second year in a row. The Model S, which cost the magazine $89,650, finished first due to its performance and technical innovations, the magazine said. Buick's Regal midsize car beat the BMW 328i as the top sports sedan, and the Chevrolet Impala was named the top large car. The model rankings show Consumer Reports' favorite among the 270 vehicles its team has recently tested. The rankings are closely watched in the auto industry, since shoppers consistently cite Consumer Reports as a main source of car-buying advice. Other top picks included the Subaru Impreza in the compact car category, Subaru Legacy in midsize cars, Toyota Prius as the best green car, Audi A6 luxury car, Subaru Forester small SUV, Toyota Highlander midsize SUV and the Honda Odyssey minivan. Japanese vehicles won six of 10 top pick categories, but that was the smallest number in the 19-year history of Consumer Reports top picks. "For years domestic automakers built lower-priced and lower-quality alternatives to imports, but those days are behind us," said Jake Fisher, the magazine's director of automotive testing. But other U.S.-based automakers still had problems.

2017 Buick LaCrosse an evolution of sharp Avenir concept

After years as a bloated, uninspiring, but comfortable near-premium sedan, Buick has taken the wraps off a leaner, lither, far more stylish LaCrosse. The third-generation model has just made its debut at the 2015 Los Angeles Motor Show. While there's a lot to talk about, let's first address the new, Avenir-inspired sheetmetal. The fascia is basically the concept car smoothed over into production form, featuring the same winged trishield. In place of the chrome-trimmed waterfall, the LaCrosse gets a blacked-out, recessed grille with a chrome surround. It looks good in photos but it's better in person, adding a real sense of complexity and depth to the front end. The headlights and lower fascia, meanwhile, adhere closely to the concept. The same cannot be said of the LaCrosse's tail. While the taillight lighting pattern is similar, the overall shape of the lighting element is radically different, refining the design featured on the back of the Regal. Also gone, sadly, is the Avenir's boattail rear deck. Instead, the LaCrosse gets a small rear deck that curves up into a pleasant duckbill spoiler. The rest of the tail is pleasantly restrained. Perhaps the weakest point is the profile, where Buick has instituted a "split-spear" design, featuring a strong shoulder line above the rear wheel well, which sits below an even stronger character line that curves down and towards the front of the car. It strikes us as just a little too much, like the Impala. Underneath that sheetmetal, Buick has managed to trim nearly 300 pounds of body fat, nearly half of which came from the vehicle's actual structure. That 300 lbs, according to Buick's engineers, is equivalent to a Kenmore side-by-side refrigerator, in case you needed a helpful comparison. Despite the weight savings, Buick has upped the torsional rigidity for this new model by 15 percent. The LaCrosse's cabin features a strong, cockpit-like design, with a high, floating-bridge center console. This is possible due to Buick's adaption of the Electronic Precision Shift system, introduced earlier this month on the new Cadillac XT5. Despite the new-fangled console design, Buick's retained the wraparound cabin style introduced on the second-gen model. Based on a quick crawl around the interior, space is great in front, although ingress in back is somewhat difficult due to the roofline. You're probably wondering why we haven't said anything about the mechanicals just yet.