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November U.S. new car sales mixed as automakers deepen discounts

DETROIT — Major automakers posted mixed U.S. November new vehicle sales on Friday and predicted a competitive December as they rushed to sell vehicles and boost their numbers before 2017 ends. Automakers are trying to sell down 2017 model-year vehicles, offering high discounts to consumers as the year-end nears. In 2016, the industry reported record annual sales of 17.55 million units. According to consultancies J.D. Power and LMC, discounts have been above 10 percent of the average transaction price for 16 of the past 17 months, a level experts say is unhealthy and unsustainable. The November sales results come as the National Automobile Dealers Association said on Friday it expects new vehicle sales to decline to 16.7 million units in 2018, after dropping to 17.1 million for the full year in 2017. If that forecast comes true, the race to move new vehicles off dealers' lots will only intensify next year. Brandon Mason, a director at PwC's automotive practice, said a worrying trend for the industry was a rising number of subprime loans. He said subprime levels are at just over 20 percent of originations, against more than 30 percent prior to the Great Recession, but recent increases remain a concern. "That's a bit of a red flag," Mason said. "It's something to keep an eye on as we move into 2018." November results by automaker: General Motors: Sales fell 2.9 percent, with sales to consumers flat against the same month in 2016. Much of the decrease was driven by lower fleet sales. GM said strong SUV and crossover sales pushed its average transaction price for the month above $37,000 for the first time. The level of unsold cars, which has been a concern for analysts and the industry, rose slightly to 83 days' supply, from 80 days at the end of October. "More vehicles are sold in December than any other month, and we are very well positioned because we have momentum in so many segments, but especially in crossovers," said Kurt McNeil, U.S. vice president of sales operations. Fiat Chrysler Automobiles: Fleet sales are low-margin, and FCA in particular has targeted a significant reduction in this type of sale in 2017. It posted a 4 percent overall decrease in sales for November, but fleet sales were down 25 percent while sales to consumers were up 2 percent on the year. Ford: The No. 2 U.S. automaker reported a 6.7 percent increase for the month, with fleet sales up nearly 26 percent and retail sales 1.3 percent higher than in November 2016.

Ford secures Microsoft for software updates

Ford is dropping Microsoft later this year as its infotainment partner when the Blue Oval switches to the BlackBerry QNX operating system for Sync 3 (pictured above). However, the two companies aren't severing ties completely, because the Redmond, WA, outfit is taking responsibility for Sync 3's wireless updates. Don Butler, Ford Director of Connected Vehicles and Services, announced the deal during a speech, according to Automotive News. "We've obviously had a good, long relationship with Microsoft," he said. "Microsoft understands the automotive environment and the kinds of experiences that we'd like to enable." The ability for Sync 3 to accept Wifi updates was announced as a major feature the new infotainment system, but this was the first mention of how that has been handled. Ford will host the files on Microsoft's Azure Cloud servers, according to Automotive News. Owners will need to give permission to check for new software, and they'll be notified after an improvement's installation. Dealers will install Wifi transmitters to keep vehicles on the lot up to date, as well. Sync 3 is set to replace the much-maligned MyFord Touch later in 2015 on some 2016 model year vehicles, and by next year it should be available throughout the Ford and Lincoln lineups. In addition to the wireless updates, the new system also promises a simplified interface, better voice recognition and faster response times. Ford Motor Company is preparing for vehicle ownership and user experiences of the future with the creation of a global cloud based Ford Service Delivery Network enabling new ways for consumers to interact with cars. Teaming up with Microsoft, Ford will expand connected services for customers around the world using the globally scalable and reliable Azure Cloud infrastructure. Ford and Lincoln owners will benefit from the convenience of new connectivity services keeping them better informed and in control of their vehicle at all times with the expanded availability of features like scheduled remote start, vehicle finder, and vehicle status (fuel or charge level, tire pressure). Building the Ford Service Delivery Network (SDN) on the Microsoft Azure platform enables a common platform for Ford to bring new features and services to market faster, quickly scale up for global implementation, and remain flexible for the future. Starting later this year, the Service Delivery Network will first enable over-the-air software updates for SYNC 3.

Amazon looking to bring Kindle to your next car?

Maybe so. The online retailer and digital media monolith recently announced the Amazon Cloud Player, an application for Ford Sync that allows users to stream media from their Amazon Cloud account directly to a Ford vehicle. This foray into automotive technology got the minds at Gigaom.com thinking about what could be next for Amazon. As Kevin Fitchard writes, the logical step is to make audio versions of your Kindle library selections available in your car. As he points out, Amazon has already laid the groundwork for such a move.
Amazon pulled the sheets back on Whispersync for Voice last year. The tech pairs ebooks with an Audible book for a small extra fee, allowing users to either read along with a narrator or switch between audio and text versions on command. Fitchard says it wouldn't be some great leap to apply the same principles to a car, where voice recognition software would allow users to pause or select chapters without ever taking their eyes off of the road.
It all sounds just fine to us, but Amazon hasn't said a thing about such a move. Still, we wouldn't be surprised to see the company come down this road in the near future just the same.