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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.

Weekly Recap: Auto execs face life in prison for recall delays under proposed legislation

The stiff punishments are part of broader transportation legislation, but clearly McCaskill has automakers in her sights.
Missouri Senator Claire McCaskill threw down the gauntlet this week, proposing a bill that could send auto executives to prison for life if they were found to have delayed a recall. She also wants to eliminate the limit for fines for auto safety violations, which are currently capped at $35 million.

2017 Cadillac CT6 Plug-in Hybrid is the most efficient and torquey CT6 of all

Cadillac is returning to the hybrid game after discontinuing the ill-fated ELR, this time with an existing car and a new drivetrain. The company has taken its CT6 flagship and given it a turbocharged 2.0-liter four-cylinder, a pair of motors, and a big battery pack. The result of this combination is a CT6 that manages a rating of 65 MPGe, can go 30 miles on a full electric charge or 400 miles combined with the engine. The powertrain produces 335 horsepower and 432 lb-ft of torque. That's the same amount of power as the 3.6-liter V6 CT6, and more torque than that engine or the twin-turbo 3.0-liter V6. Cadillac claims the CT6 plug-in is capable of hitting 60 miles per hour in 5.2 seconds and reaching a top speed of 150 mph. The green and grunty CT6 plug-in will be available this coming spring, and it will have a premium price of $76,090. Cadillac says that its equipment list is comparable to the CT6 Premium Luxury trim level, which starts at $64,590 with the 3.6-liter V6, and $68,590 with the twin-turbo V6. However, in addition to the hybrid powertrain, Cadillac throws in a number of features that are options on the conventional gasoline models. To get the hybrid's rear seat infotainment system and enhanced night vision, a buyer would have to add $5,800 in option packages. That still leaves the twin-turbo model $1,700 shy of the hybrid, but that's not a terrible trade for the option of fuel-free driving for at least some of the time. Related Video: Featured Gallery 2017 Cadillac CT6 Plug-in Hybrid View 15 Photos Image Credit: Cadillac Green LA Auto Show Cadillac Hybrid Luxury Sedan cadillac ct6 2016 LA Auto Show