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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.

GM to add 1,200 workers at 2 Michigan factories

DETROIT — General Motors is adding 1,200 jobs at two Michigan factories to build midsize SUVs and two new luxury sedans. GM said Friday that its Lansing Delta Township plant will get a third shift and 800 more workers to build the Chevrolet Traverse and Buick Enclave SUVs, which have three rows of seats. The Lansing Grand River plant will get a second shift and 400 more workers to build two new Cadillac sedans, the CT4 and CT5. Employees laid off at other GM factories will fill the new jobs first, then workers will be added, GM spokesman Dan Flores said. The company has not determined yet how many new people will be needed, he said. Both additional shifts will start working sometime between April and June, the company said. Lansing Delta Township now employs about 2,500 salaried and blue-collar workers, while the Grand River plant has 1,400. GM sold more than 147,000 Traverse SUVs in the U.S. last year, a 0.4% increase from 2018. Enclave sales were up 3% to just over 51,000, according to Autodata Corp. Related Video:

Cadillac recalls 120k examples of ATS for fire risk

Cadillac is recalling a total of 119,339 units (96,145 in the US alone) of the 2013-2016 ATS sedan, because the coil antenna module that powers the rear defogger can overheat. The problem has been linked to four fires, but there have been no injuries, fatalities, or crashes, according to the automaker. During manufacturing, the antenna might have been produced with "critically weak terminal connectivity." If being cycled on and off often or used continuously, these faulty examples can overheat, leading to a fire in the driver's side rear pillar. According to the company, "less than 1 percent of the recalled vehicles are expected to have the condition." According to the National Highway Traffic Safety Administration (in a PDF), the fix is a reflash for the ATS' Electronic Climate Control module that automatically turns on the rear defogger when the engine starts. In addition, 2013 models keep the system on continuously at low temperatures at highway speeds and this is also being disabled in the update. The changes are meant to cycle the coil less often, but owners can still turn it on manually. Related Video: GM Statement: General Motors is recalling approximately 96,145 2013-16 model year ATS sedans in the U.S. Some of these vehicles may have been manufactured with critically weak terminal connectivity in the coil antenna module, which powers the rear defogger system. If the module has the condition and is subjected to excessive cycling or continuous operation, it may overheat and a fire may develop inside the rear pillar on the driver's side of the vehicle. Less than 1 percent of the recalled vehicles are expected to have the condition. GM is aware of four fires but no injuries, fatalities or crashes. Including Canada, Mexico and exports, the total population of the recall is approximately 119,339. RECALL Subject : Rear Defogger Coil Antenna Module may Overheat Report Receipt Date: SEP 03, 2015 NHTSA Campaign Number: 15V558000 Component(s): VISIBILITY Potential Number of Units Affected: 96,145 All Products Associated with this Recall Vehicle Make Model Model Year(s) CADILLAC ATS 2013-2016 Details Manufacturer: General Motors LLC SUMMARY: General Motors LLC (GM) is recalling certain model year 2013-2016 Cadillac ATS sedan vehicles manufactured April 23, 2012, to September 2, 2015. In the affected vehicles, the coil antenna module that powers the rear defogger system may generate excessive heat due to excessive cycling or continuous operation.