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The next steps automakers could take after sales drop again in April

DETROIT (Reuters) - Major automakers on Tuesday posted declines in U.S. new vehicle sales for April in a sign the long boom cycle that lifted the American auto industry to record sales last year is losing steam, sending carmaker stocks down. The drop in sales versus April 2016 came on the heels of a disappointing March, which automakers had shrugged off as just a bad month. But two straight weak months has heightened Wall Street worries the cyclical industry is on a downward swing after a nearly uninterrupted boom since the Great Recession's end in 2010. Auto sales were a drag on U.S. first-quarter gross domestic product, with the economy growing at an annual rate of just 0.7 percent according to an advance estimate published by the Commerce Department last Friday. Excluding the auto sector the GDP growth rate would have been 1.2 percent. Industry consultant Autodata put the industry's seasonally adjusted annualized rate of sales at 16.88 million units for April, below the average of 17.2 million units predicted by analysts polled by Reuters. General Motors Co shares fell 2.9 percent while Ford Motor Co slid 4.3 percent and Fiat Chrysler Automobiles NV's U.S.-traded shares tumbled 4.2 percent. The U.S. auto industry faces multiple challenges. Sales are slipping and vehicle inventory levels have risen even as carmakers have hiked discounts to lure customers. A flood of used vehicles from the boom cycle are increasingly competing with new cars. The question for automakers: How much and for how long to curtail production this summer, which will result in worker layoffs? To bring down stocks of unsold vehicles, the Detroit automakers need to cut production, and offer more discounts without creating "an incentives war," said Mark Wakefield, head of the North American automotive practice for AlixPartners in Southfield, Michigan. "We see multiple weeks (of production) being taken out on the car side," he said, "and some softness on the truck side." Rival automakers will be watching each other to see if one is cutting prices to gain market share from another, he said, instead of just clearing inventory. INVESTORS DIGEST BAD NEWS Just last week GM reported a record first-quarter profit, but that had almost zero impact on the automaker's stock. The iconic carmaker, whose own interest was once conflated with that of America's, has slipped behind luxury carmaker Tesla Inc in terms of valuation.

NHTSA probes 2014 Ford Edge Sport 22-inch alloy wheels

The National Highway Traffic Safety Administration is opening a preliminary evaluation into the 2014 Ford Edge Sport for the possibility its 22-inch wheels could break while on the road. This affects an estimated 20,000 examples of the crossover, according to NHTSA. The case that instigated this evaluation was submitted to NHTSA in November 2014. The driver reported that the front, right corner of the vehicle suddenly dipped, and the Edge went into a field. No one was harmed, but upon investigation, the wheel had broken into two pieces, according to The Detroit News. When this happened, this crossover had been driven an estimated 8,500 miles. NHTSA's preliminary evaluations are meant "to assess the scope, frequency, and safety-related consequences of the alleged defect in the subject vehicles." If a problem is discovered during the investigation, this process can lead to a recall. Ford spokesperson Kelli Felker told Autoblog, "We will cooperate with NHTSA on this investigation, as we always do." INVESTIGATION Subject : Wheel Separation Date Investigation Opened: MAY 20, 2015 Date Investigation Closed: Open NHTSA Action Number: PE15020 Component(s): WHEELS All Products Associated with this Investigation Vehicle Make Model Model Year(s) FORD EDGE 2014 Details Manufacturer: Ford Motor Company SUMMARY: On November 29, 2014, ODI received a complaint (ODI No. 10661278) reporting the sudden failure of an original equipment 22-inch alloy wheel rim that failed on a model year 2014 Ford Edge. The right-front corner of the vehicle suddenly dropped while driving, causing the vehicle to drive off the road and into a field. The right-front wheel rim was found to have broken into two pieces. The owner said that there was no prior warning or wheel related problems with the vehicle. The vehicle had been driven approximately 8,500 miles at the time of the incident. A preliminary evaluation has been opened to assess the scope, frequency and safety-related consequences of the alleged defect in the subject vehicles. Related Video:

Join Autoblog editors for a full video tour of the 2019 Detroit Auto Show

The 2019 North American International Auto Show might have been a little more quiet than past years, but there were still some pretty major reveals, including the Toyota Supra, new Ford Explorer, Shelby GT500, Subaru WRX STI S209 and Kia Telluride. We also saw some lovely concepts like the Nissan IMs and Lexus LC Convertible. Senior Editor Alex Kierstein, Consumer Editor Jeremy Korzeniewski and Senior Green Editor John Beltz Snyder join me, Associate Editor Reese Counts — with Social Media Manager Michael Dylan Ferrara behind the camera — on a long walk through the show. We discuss cars, poke around the stands, dress a bloody wound and answer your questions in the Facebook comments. For more Detroit coverage, you can check out Autoblog's picks for the best in show, listen to our podcast or look at the best images from all the reveals. Finally, don't forget to watch Editor-in-Chief Greg Migliore hand over our 2019 Technology of the Year award. Related Video: Green Detroit Auto Show Acura Cadillac Chevrolet Ford GM Hyundai Infiniti Kia Lexus Nissan RAM Subaru Toyota Volkswagen Truck Convertible Coupe Crossover Hatchback Minivan/Van SUV Videos Sedan facebook 2019 detroit auto show live