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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.

Ford F-450 claims best-in-class towing, company abandons practice of removing items to boost payload number

The ongoing heavy-duty truck battle between Ford and Ram is showing no signs of slowing down. The Blue Oval is trying to remove at least one point of contention between the two brands by testing its 2015 F-450 Super Duty using the Society of Automotive Engineers J2807 towing standard, which Ram also uses. In the new evaluation, the F-450 is rated at a max towing capacity of 31,200 pounds. That's an identical amount as under Ford's own, previous test.
"We leave no doubt with customers that the F-450 pickup truck has best-in-class towing of 31,200 pounds - whether tested using our own internal towing standards or SAE J2807," said Raj Nair, Ford group vice president for Global Product Development, in the company's release.
At the same time, Ford is also changing how it calculates the F-450's payload. Instead of using its minimum curb weight as before, the brand is now using the truck's base curb weight. The revision lowers the pickup's rating to 5,300 pounds, compared to 5,450 pounds previously. The company said in its announcement that the reason for this is "aligning its payload rating practices with other manufacturers to make it easier for customers to compare vehicles." General Motors made a similar switch for its pickups in August.

Autocar pits Formula Ford against Germany's finest

Ford has quite the racing pedigree, but usually, its racers are relegated to the track. Not the new Formula Ford EcoBoost, though. It's a turbocharged, open-wheeled racer complete with a 200-horsepower, 1.0-liter, three-cylinder engine... and it's legal on the roads of the UK.
That's stressed in this video from Autocar, with the mag going so far as to show the car's tax disc and license plates. Being a road-legal offering, it's tempting to see just how well an open-wheeler that delivers racecar-like performance while also netting over 100 miles per gallon (assume this is on the British cycle, for obvious reasons) stacks up against modern performance cars.
Autocar lined up the Formula Ford against an Audi R8 V10, a BMW M6 Gran Coupe and a Mercedes-Benz A45 AMG in a number of situations to see which would come out on top. Take a look below for the full video.