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Major automakers post mixed US June sales figures

General Motors, Ford and Fiat Chrysler Automobiles NV posted declines in US new vehicle sales for June on Monday, while major Japanese automakers reported stronger figures. Once again, demand for pickup trucks and crossovers offset a decline in sedan sales. Automakers' shares rose as overall industry sales still came in above Wall Street expectations. The US auto industry is bracing for a downturn after hitting a record 17.55 million new vehicles sold in 2016. Analysts had predicted that overall, US vehicle sales would fall in June for the fourth consecutive month. As the market has shown signs of cooling, automakers have hiked discounts and loosened lending terms. Car shopping website Edmunds said on Monday the average length of a car loan reached an all-time high of 69.3 months in June. "It's financially risky, leaving borrowers exposed to being upside down on their vehicles for a large chunk of their loans," said Jessica Caldwell, Edmunds' executive director of industry analysis. GM said its sales fell about 5 percent versus June 2016, but that the industry would see stronger sales in the second half of 2017 versus the first half. "Under the current economic conditions, we anticipate US retail vehicle sales will remain strong for the foreseeable future." GM shares were up 2.4 percent in morning trading, while Ford rose 3.3 percent and FCA shares jumped 6 percent. "US total sales are moderating due to an industry-wide pullback in daily rental sales, but key US economic fundamentals clearly remain positive," said GM chief economist Mustafa Mohatarem. "Under the current economic conditions, we anticipate US retail vehicle sales will remain strong for the foreseeable future." Ford said its sales for June were hit by lower fleet sales to rental agencies, businesses, and government entities, which fell 13.9 percent, while sales to consumers were flat. But it sold a record 406,464 SUVs in the first half of the year, with Explorer sales increasing 23 percent in June. And sales of the F-150 had their strongest June since 2001. On a media call, Ford executives said an initial read of automakers' sales figures indicated a seasonally adjusted annualized rate of around 17 million new vehicles for the month, which would be better than 16.6 million units analysts had predicted. FCA said June sales decreased 7 percent versus the same month a year earlier.

NHTSA investigating Ford's solution to May 2014 power steering recall

The National Highway Traffic Safety Administration is investigating a complaint that Ford's response to a May 2014 recall of the 2008 to 2011 Ford Escape and Mercury Mariner doesn't quite go far enough to solve a troubling power-steering problem. Roughly a year ago, Ford recalled nearly a million vehicles after it was found that a problem with the torque sensor's communication with the power steering control module could cut steering assistance for drivers. While manual steering would still be available, the problem was enough to ask drivers to report in to have the PSCM inspected, and if necessary, replaced (along with the torque sensor, or in dramatic cases, the entire steering column). That would only happen, though, if trouble codes were being thrown. If there weren't any problems, dealers were told to simply update the PSCM's software so that any issues between it and the torque sensor would simply throw a visual and audio warning – power steering would still be maintained. The petitioner claimed that following the recall work, he still experienced a problem with the torque sensor. According to NHTSA, a claim was made that Ford didn't go far enough in its solution to the problem, and that "the software update itself may in fact cause further issues with the affected vehicle's power steering, causing it to fail, and ultimately requiring replacement of the torque sensor or entire steering column." The petition was filed in early February and is now officially being looked into by NHTSA.

Ford preparing camera-based Front Lighting System

Ford's European Research and Innovation Center in Aachen, Germany is in pre-development on two new lighting technologies that Ford expects to be available "in the near-term." The Camera-Based Advanced Front Lighting System uses GPS and a video camera in the rear-view mirror housing to move the adaptive headlights with the road terrain. When the car detects a roundabout or an intersection, for instance, the light beam widens to offer a bigger view of what's coming from the side. If GPS detected the intersection, the location is tagged so that the beam automatically widens when it is encountered again. The Spot Lighting system uses an infrared camera behind the grille, and is similar to but less complex than systems employed by Mercedes-Benz and Audi. When the infrared camera detects a potential hazard like a person or an animal in or near the road up to 390 feet ahead, it can shine one of two LED spotlights on the danger. A display in the dash cluster will highlight the object with a yellow or a red box, depending on the how close it is and how dangerous it might be. Even though there are only two spotlights, mounted next to the fog lights on the lower front bumper, the system can detect up to eight objects at a time. Don't expect to see these features come to the US, though. Our regulations remain opposed to such headlight trickery, so until that changes, Ford says it's focusing these developments on the European and Asian markets. The video above shows how it works, the press release below has more details. FORD DEVELOPING ADVANCED HEADLIGHTS THAT POINT OUT PEOPLE, ANIMALS IN THE DARK, AND WIDEN BEAMS AT TRICKY JUNCTIONS - Ford is developing advanced lighting technology that enables drivers to more easily see potential hazards when driving at night - Camera-Based Advanced Front Lighting System widens beam at junctions and roundabouts after interpreting traffic signs - GPS-enabled system uses forward-facing camera to remember roadways and direct lighting to help drivers better see bends in the road – effectively lighting the way home on previously travelled routes - Spot Lighting uses infra-red camera to detect pedestrians, cyclists, and animals, and highlight the potential hazards; system can detect up to eight potential hazards and highlight two highest priorities using specially designed headlights and on-screen display AACHEN, Germany, July 17, 2015 – Driving at night, particularly on unlit roads, can be a nerve-wracking experience.