1957 Ford Ranchero on 2040-cars

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U.S. auto sales fall in July, as Detroit dials back on inventory, rental sales

DETROIT — U.S. carmakers said on Tuesday they continued to slash low-margin sales to daily rental fleets in July as General Motors, Ford and Fiat Chrysler Automobiles struggled to curb a slide in retail sales. July is on track to be the fifth straight month in which the annual pace of car and light truck sales declined from the same month a year ago, in part because of fewer fleet sales, analysts and industry executives said. July 2016 sales hit a strong 17.9-million-vehicle pace. GM said the seasonally adjusted annual sales rate fell to an estimated 16.9 million vehicles in July. At midmorning on Tuesday, GM shares were down 3.4 percent at $34.77, Ford was down 2.8 percent at $10.91, and Fiat Chrysler shares were down 0.3 percent at $12.05 in New York. GM sales dropped 15 percent from a year ago to 226,107 vehicles, as the company cut rental fleet sales more than 80 percent. The automaker said inventories of unsold vehicles at month's end were 104 days, down from 105 days at the end of June. GM has promised investors to reduce inventories to 70 days by year-end. Ford said its July sales dipped 7.5 percent to 200,212 vehicles, as it cut fleet sales more than 26 percent. Inventories fell to 77 days from 79 the previous month. Fiat Chrysler said sales dropped 10 percent to 161,477, as it also cut back sales to daily rental fleets. Among the top Japanese companies, only Toyota reported a year-to-year gain, with sales up 4 percent to 222,057 — just 4,000 units behind GM. Honda sales were down 1 percent to 150,980 — its first-quarter sales continuing to decline in North America but seeing a big increase in China. And Nissan sales fell 3 percent to 128,295. GM, Ford and Fiat Chrysler have cautioned that second-half financial results likely will be lower than first-half results, in part reflecting production cuts in North America and pricing pressures. The automakers this year have been deliberately dialing back sales to rental-car companies, which often generate little to no profit, while struggling to keep retail sales from sagging further, according to industry analysts. Industry consultant LMC cut its full-year forecast for new vehicle sales to 17 million vehicles. Automakers sold a record 17.55 million vehicles in the United States in 2016.

Ford adding second supplier for F-150 frames

Metalsa, the company that builds steel frames for the aluminum-bodied Ford F-150, is still having trouble providing enough frames to supply the two factories that build the pickup. The snafu is preventing Ford from selling as many of the country's best-selling truck as it could, and eating into profits - even though the bottom line is still breaking company records. According to The Wall Street Journal, Ford has picked Michigan company Tower International as a second frame supplier and expects to have inventory up to a proper level at the beginning of Q4 of this year. Neither Ford nor Tower would confirm the development - Automotive News got comments from a source and pieced together bits of info from Tower's financial statements and local press reports. Tower currently builds body structures for several vehicles, including the F-series, and the Bellevue, Ohio factory that will build F-150 frames previously manufactured frames for the Ranger and Econoline. According to a story in the local Sandusky Register, Tower will add one production line at the end of next month to begin shipping frames in October, and another line in April 2016. Something like 138 full-time workers and 364 robots are expected to carry out the work. Tower's most recent financial statement said that capital investment will be necessary to get everything set up, but the contract will be worth $140 million in yearly revenue.

Vaughn Gittin Jr. takes his dog for a drift

Vaughn Gittin Jr. spends a great deal of his workday going sideways, but he's usually alone in the endeavor. For a guy that is clearly a dog lover, we imagine that can get a bit lonely.
That won't be a problem for Gittin in this latest video, which features the racer hanging out with his good pal Brody (a dog) and everyone's favorite hot hatch, the Ford Fiesta ST.