2010 Ford Crown Victoria Police Interceptor Sedan 4-door 4.6l on 2040-cars

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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.

Performance cars driving sales gains

We're living in a fantastic time for performance cars. For drivers, there are a bevy of exciting models either already here or on the way that cater to different demographics within the niche, like the 2016 Mazda MX-5 Miata, Ford Shelby Mustang GT350 and Dodge's Hellcat-powered products. While trucks and crossovers still offer a booming market at the moment, sporty vehicles are another way for automakers to make some cash, too. According to Ford Performance director Dave Pericak speaking to Automotive News, "Performance vehicle sales around the world continue to grow – with sales up 70 percent in the United States and 14 percent in Europe since 2009." Automakers love this popularity because the sporty models create a perfect storm to make big money on each sale. One reason for the strong margins is that performance vehicles are generally based on existing models or platforms. That keeps development costs lower and allows for a focus on tech like turbocharging or light-weighting to subsidize investments for future products. When it comes time to arrive in the showroom, automakers can load them with equipment, according to Automotive News. With transaction prices already growing thanks to longer loans, buyers have been willing to pay more as of late, as well. The customers in the segment also tend to be younger and more affluent. For example, 30 percent of customers for Ford's ST models have a household income over $100,000 and Millennials buy them twice as much as other products from the brand, according to Automotive News. Despite popular myths, young people still like to drive, which could mean possible return customers. The performance trend certainly isn't on the wane yet. In fact, vehicles like the 2016 Chevrolet Camaro, Ford Focus RS and Fiat 124 Spider show more fun is on the way. Related Video: Featured Gallery 2014 Ford Fiesta ST View 47 Photos News Source: Automotive News - sub. req.Image Credit: Scott Olson / Getty Images Ford Car Buying Car Dealers Performance sales performance car

Ford's Explorer-based Police Interceptor to get 365-hp EcoBoost option

Speeders beware, the police are going to be getting quite a bit faster. Ford has just announced that it will be offering its 3.5-liter, twin-turbocharged, EcoBoost V6 in the Explorer Police Interceptor. The new engine will be joining the existing 3.7-liter V6. The 365-horsepower, 350-pound-foot mill should be familiar to consumers as the powerplant that's found in the Ford Taurus SHO (and its LEO equivalent, the Taurus Police Interceptor) and the Ford Explorer Sport. It should also provide quite a kick in the pants to officers used to the naturally aspirated 3.7 and its 304 ponies and 279 pound-feet of torque.
The move to the more potent powerplant was born out of all the equipment officers need to carry on a day-to-day basis. These days, there's so much stuff that police need on a regular basis, that there's a genuine market for a faster Police Interceptor Utility, as it's known officially. The Explorer-based cruiser has already accounted for 68 percent of Ford's LEO sales in 2013, and that's with just the 3.7, and we'd only expect that number to increase once the twin-turbo, 3.5-liter V6 is available. Ford won't offer up any indication of what the take rate will be on the new engine, but we're guessing it'll be fairly high.
The success of the Explorer PI couldn't have come at a better time for Ford. The decision to end Crown Victoria production was not a popular one with police, and combined with Chevrolet and Dodge diving into the LEO market feet first, Ford hasn't been performing as well as it's wanted to. The Explorer has been helping it turn around, though. And with the inclusion of the EcoBoost, Ford also has a legit competitor for the Chevrolet Tahoe on the big utility side of the police market.