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Auto sales in March and first quarter down nearly across the board

Nearly every major automaker reported weak U.S. sales for March and the first quarter of 2019, citing a rough start to the year, but said a robust economy and strong labor market should encourage consumers to buy more vehicles as 2019 rolls on. GM, which no longer releases monthly sales figures, saw first-quarter sales fall 7 percent, with declines across all brands. Sales of Silverado pickup trucks fell nearly 16 percent and the high-margin Chevy Suburban large SUV dropped 25 percent. Ford also no longer releases monthly sales numbers, but is due to release its first-quarter sales figures on Thursday. According to industry data, Ford's sales fell 2 percent in the quarter and 5 percent in March. Ford representatives did not immediately respond to requests for comment. FCA reported a 7 percent fall in U.S. sales in March and a 3 percent drop for the first quarter. All of FCA's brands dropped in March, except for Ram, which saw a 15 percent increase in pickup truck sales. "The industry had a tough first quarter, but with spring finally starting to show its face and continued strong economic indicators ... we are confident that new vehicle sales demand will strengthen going forward," FCA's U.S. head of sales, Reid Bigland, said in a statement. Toyota reported a 3.5 percent fall in U.S. sales in March and 5 percent for the first quarter, hurt by declining demand for its Corolla sedans and Camry vehicles. "While some of our competitors are abandoning sedans, we remain optimistic about the future of the segment," Toyota said in a statement. Nissan posted a 5.3 percent drop in sales in March, and its first-quarter sales were down 11.6 percent. Honda and Hyundai bucked the trend. Honda's U.S. sales rose 4.3 percent in March and 2 percent in the quarter, while Hyundai's were up 1.7 percent and 2.1 percent, respectively. Passenger-car sales suffered throughout the January-March quarter compared with the same period in 2018 as Americans continued to abandon them in favor of larger, more comfortable pickup trucks and SUVs, which are far more profitable for automakers. The battle for market share in the particularly lucrative large-pickup truck market intensified in the quarter, as Fiat Chrysler Automobiles' Ram brand outsold the U.S.' No. 1 automaker General Motors' Chevrolet-brand trucks. The two automakers have both launched redesigned pickup trucks.

Detroit automakers observing 8:46 of silence to mark Juneteenth

GM Executive Vice President of Global Manufacturing Gerald Johnson, right, talks with employees at the Fairfax Assembly & Stamping Plant in Kansas City, Kansas. (file photo - GM)     All three Detroit automakers are observing Juneteenth, a day commemorating the end of slavery, on Friday by observing 8 minutes and 46 seconds of silence, among other companywide efforts to advance the causes of social and racial justice and equality. Juneteenth marks the date, June 19, in 1865 when Union soldiers, led by Maj. Gen. Gordon Granger, arrived at Galveston, Texas, and announced the Civil War had ended and enslaved African Americans were to be freed. President Abraham Lincoln had officially ended slavery more than two years prior via the Emancipation Proclamation, but Union forces didn't reach Texas until that time, so there was virtually no enforcement. The 8:46 timestamp is significant because it was the length of time that a police officer in Minneapolis knelt on the neck of George Floyd during an arrest, ultimately killing him and sparking waves of protests across the U.S. and overseas. Autoblog asked automakers about their plans to mark Juneteenth, what they were doing to advance the cause of social justice for Black people, and how many African Americans they employ in both blue- and white-collar jobs. We heard back from GM, Ford, Fiat Chrysler and Honda but not from Nissan and Toyota. General Motors GM’s U.S. workforce is 17.2% Black and 69.2% white, according to its most recent corporate Diversity and Inclusion Report. GM's total global employment is 173,000, and it says women and minorities represent 40% of its team of corporate officers. For reference, the Census Bureau says African Americans make up 13.4% of the U.S. population of roughly 328 million people. White people constitute 76.5%. As previously reported, GM planned to pause production at its factories on each shift today and observe silence for 8 minutes and 46 seconds. The company will also have a digital countdown clock atop the GM's headquarters in Detroit for the moment of silence. Additionally, Chairman and CEO Mary Barra has said she will lead a new Inclusion Advisory Board made up of people from within and outside GM to suggest areas for change and hold the company to its commitments to fight injustice and racial inequality.

FCA and Peugeot reportedly agree on merger

Citing a Wall Street Journal report, the Detroit Free Press says "Fiat Chrysler and PSA Groupe have agreed to merge." The Journal reported on talks between the two car companies only yesterday. It's said that Peugeot's board met yesterday to approve the deal, FCA's board met today, and an announcement could come as soon as tomorrow, Thursday. Both automakers have released statements, but neither company has released any information beyond admitting to ongoing talks. If the merger happens, the combined entity would become the world's fourth-largest carmaker with a $50 billion valuation, slotting in behind Toyota, the Volkswagen Group, and the Renault Nissan Mitsubishi alliance. Among the merger options possible, "an all-stock merger of equals" is the one analysts and Moody's seem to give the best grade. The reported merger would come about four months after FCA walked away from merger talks with Renault. FCA said the French government scuppered those talks over the role of Nissan in a reformed entity, but there were also brewing issues with French unions, and ongoing turmoil among Renault and Nissan leadership thanks to continuing fallout from ex-CEO Carlos Ghosn's arrest last year. FCA makes most of its revenue in the U.S. and rules Italy, while Peugeot is the second-best-selling automaker in Europe with its own brand in France and Opel in Germany. The two companies already have a partnership in Europe making vans, one that FCA CEO Mike Manley has spoken highly of. Among the list of obvious benefits in a potential merger, FCA would get access to Peugeot's small, modern platforms, $10.2 billion in cash, and electrified and hybrid architecture developments, the latter especially important to FCA as those are fields where it lags. Peugeot would get much easier access to the U.S. market, and the money-printing brands Jeep and Ram. A merged carmaker would have combined sales of nearly 9 million a year, based on 2018 results. By comparison, both Volkswagen and Toyota sell over 10 million cars a year, while the Renault-Nissan-Mitsubishi alliance almost 11 million. Peugeot CEO Carlos Tavares has proved he knows how to do turnarounds and mergers. After leaving a position as Carlos Ghosn's right-hand man in 2012, Tavares took over Peugeot in 2014, navigated a bailout from the French government and China's Dongfeng Motors in 2015, and turned PSA into a regional powerhouse.