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Trucks, SUVs — and Camry — shine in mixed U.S. January vehicle sales

DETROIT — Automakers posted mixed U.S. new vehicle sales data for January, with American consumers continuing to abandon passenger cars for the larger pickup trucks, SUVs and crossover models that manufacturers also love because they are far more profitable. Total industry auto sales for the month rose 1 percent versus January 2016. According to Autodata Corp, which tracks industry sales, the seasonally adjusted annualized rate (SAAR) of U.S. car and light truck sales in January fell to 17.12 million units from 17.44 million a year earlier. Analysts polled by Reuters had expected a January SAAR of 17.2 million units. U.S. auto industry sales fell 2 percent in 2017 to 17.23 million vehicles after hitting a record high in 2016 and are expected to drop further in 2018 despite a solid economy. Interest rates are rising and around 4 million late-model used cars will return to dealer lots this year to compete with more expensive new ones. Automakers have used consumer discounts to boost sales, a growing concern for observers who say this undermines resale values and profits. Discounts declined in January, but remained above 10 percent of manufacturers' recommended prices. ""I think the industry has accepted that (sales) volumes will fall somewhat in 2018 ... and I don't think the industry is going to go over the cliff with insane incentives," Mike Jackson, chief executive officer of AutoNation Inc, told Reuters after his company, the largest U.S. auto retail chain, posted a higher quarterly net profit. Mark Wakefield, head of the North American automotive practice for consultancy AlixPartners, had a gloomier perspective. The industry's less-than-stellar sales performance for January showed "we are now past the peak," he said. "Automakers are now selling the deal instead of the vehicle," he said. "That's a tough spot to be in because that treadmill is hard to get off once you're on it." General Motors January sales rose 1.3 percent, driven by a 16 percent rise in fleet sales. Sales to consumers fell 2.4 percent. GM posted strong gains for models such as the Silverado pickup truck and Equinox crossover model, while its passenger cars continued to struggle. Ford The Blue Oval posted a 6.6 percent sales decline for January, with retail sales down 4.3 percent. Sales of Ford's F-Series pickup trucks - America's best-selling vehicle brand for decades — rose 1.6 percent. Passenger cars were down more than 23 percent.

Daimler consulting with Ford about 3-cylinder engines

Soon enough, Ford will offer its 1.0-liter EcoBoost three-cylinder engine under the hood of the Fiesta here in the United States, building on the success of the small powerplant overseas. In fact, this success has caused other automakers to take notice, and according to Automotive News Europe, Daimler is now talking to Ford about this engine for use in its own products.
In other markets, Ford offers the 1.0-liter mill under the hood of the Focus (we had the chance to sample this package on our home turf), as well as the B-Max MPV. For this new collaboration, Daimler would use the turbo-three in the next-generation Smart ForTwo, as well as the Renault Twingo, which the German automaker will be collaborating on as part of its alliance with Renault-Nissan. Speaking to AN, a Mercedes-Benz engineer called the 1.0-liter mill an "interesting and impressive engine."
In exchange for details about the EcoBoost inline-three, Daimler will supply Ford with information regarding its Euro6 stratified lean-burn gasoline engine, which is found in the new E-Class sedan.

Ford Expedition, Lincoln Navigator recalled for fire risk

Owners of some 2021 Ford Expedition and Lincoln Navigator SUVs are being urged to park their vehicles outdoors and away from structures until they can be taken to dealers for repairs. Ford issued a recall covering 39,000 vehicles due to engine fires under their hoods, and it's not certain at this point what's causing the flames to start. According to documents posted on the National Highway Safety Administration's website, "The remedy is still under development." Ford says it has reports of 16 under-hood fires, with 14 of those happening in vehicles owned by car rental companies. The fires can happen even while the engine isn't running. According to Ford, "Some customers have reported a burning smell and smoke from the front passenger engine compartment while driving." The fires seem to be starting "in the rear of the engine compartment near the passenger side of the vehicle." Despite the under-hood fire risk, Ford is not at this time recommending that owners stop driving the vehicles. "We are working around the clock to determine the root cause of this issue and subsequent remedy so that customers can continue to enjoy using their vehicles," Jeffrey Marentic, general manager of Ford passenger vehicles, said in a statement. Ford says the fires appear to be limited to SUVs built from Dec. 1, 2020 to April 30, 2021 and says it has no fire reports from vehicles built before or after those dates. In a separate recall, Ford is also calling in about 310,000 heavy-duty trucks because the driver's air bag may not inflate in a crash. That recall covers certain 2016 F-250, F-350, F-450 and F-550 trucks. According to documents posted by NHTSA, dust can get into the airbag wiring in the steering wheel, which can cut electricity to necessary components. To fix the problem, dealers will replace the steering wheel's wiring. And in a third recall, Ford announced it is bringing in 464 Mustang Mach-E electric SUVs from 2021. A software problem in the electric vehicle can cause unintended acceleration, deceleration or a loss of drive power in all-wheel-drive vehicles. NHTSA documents say that the powertrain control computer may not detect a software error. The problem will be fixed by dealers or by an online software update.