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Weekly Recap: The implications of strong new car sales

New car sales are on a roll in the United States this year, and analysts are optimistic the industry will maintain its torrid pace. Sales increased 1.6 percent in May and reached an eye-popping seasonally-adjusted selling rate of 17.8 million, the strongest pace since July 2005, according TrueCar research. That positions the industry for one of its strongest years ever, as consumer confidence, low interest rates, low fuel costs, and an influx of new products propel gains. In addition to the positive economic factors, May also featured warmer weather across much of the US, an extra weekend, and it came on the heels of relatively weak April sales. Analysts suggest income tax refunds and the promise of summer driving and vacations also traditionally help May sales. "While 2015 will be one of the best years in the history of the US industry, in some ways it may be the very best ever," IHS Automotive analyst Tom Libby wrote in a commentary. "Not only are new vehicle registration volumes approaching the record levels of the early 2000s, but now registrations and production capacity are much more closely aligned so the industry is much more healthy." Capacity, an indicator of the auto sector's health, is also expected to grow. Morgan Stanley predicts it will eventually hit at least 20 million units per year, as many companies, including General Motors, Ford, Tesla, and Volvo are investing in new or upgraded factories. "The best predictor of US auto sales is the growth in capacity, and frankly, we're losing count of all of the additions – there's literally something new and big every week," Morgan Stanley said in a research note. Transaction prices, another telling indicator, also continue to show strength. They rose four percent in May to $32,452 per vehicle, and incentives dropped $10 per vehicle to $2,661, TrueCar said. "New vehicle sector and segment preference indicates consumers are confident about the economy and their finances," TrueCar president John Krafcik said in a statement. Still, Morgan Stanley noted the robust sales did little to immediately impact automaker stock prices and suggested it might be a prime time to sell if sales reach the 18-million pace. "Perhaps the biggest reason may be that investors have seen this movie before," the firm wrote.

GM might share the Chevy Volt's powertrain tech with rivals

Car shoppers might eventually find the award-winning powertrain from the second-generation Chevrolet Volt under the hood of another automaker's vehicle – at least if General Motors global powertrain chief Dan Nicholson gets his way. According to Automotive News, Nicholson would be open to partnerships with other companies to share the range-extended setup. "We want to be the partner of choice in propulsion system development in this complex and turbulent era we are approaching," he told the trade publication. For an automaker that wants an electrified solution, the Volt's system would be an easy choice. It combines a 1.5-liter four-cylinder with two electric motors and an 18.4-kWh lithium-ion battery. The EPA estimates the setup is good for 106 MPGe combined and 53 miles of EV range in the Volt. Wards selected the powertrain for its 10 Best Engines list for 2016, and the Chevy won the Green Car of the Year Award. According to Automotive News, a partnership could have serious financial implications for GM and its collaborator. Rival automakers could get a competitive powertrain without the huge expense of research and development. Meanwhile, The General would benefit from larger economies of scale to drive down prices. Don't look for the Volt's powertrain to arrive in other vehicles too soon, though. GM spokesperson Kevin Kelley told Autoblog that he was "not aware of anything going on" in regards to negotiations with other automakers. In the meantime, we'll keep our eyes open for companies borrowing the Bowtie's advanced tech. Related Video: Related Gallery 2016 Chevrolet Volt: First Drive View 24 Photos News Source: Automotive News - sub. req.Image Credit: Copyright 2016 Sebastian Blanco / AOL Green Chevrolet GM Technology Hybrid Videos Sedan

GM again delays plant that will build the Silverado EV

  General Motors Co. will again push back the planned opening of an electric pickup truck plant in suburban Detroit and has delayed a Buick plug-in amid uncertain growth in battery-powered car sales. Mary Barra, the company’s chief executive officer, told analysts Tuesday on an earnings conference call the automaker is postponing until mid-2026 the opening of its Orion Assembly factory, which will make the Chevrolet Silverado EV. This is the second delay for the plant, which was originally slated to start production in late 2024. Shares of the automaker fell 4.1% to $47.52 as of 9:39 a.m. in New York. The stock is up about 32% so far this year. The delay is a main reason why GM wonÂ’t be able to meet its previous goal of having production in place to make 1 million EVs by the end of next year. The company said they will add production as buyers show more interest in electric vehicles. “We continue to make sure we continue to scale the business to customers and where they are at,” GM Chief Financial Officer Paul Jacobson said on a call with reporters. GM reported on Tuesday a 60% jump in second quarter profit compared with a year ago, topping Wall StreetÂ’s expectations on strong demand for its traditional gas-powered trucks in the US market.