Ford Mustang 2 Door Coupe on 2040-cars

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The next steps automakers could take after sales drop again in April

DETROIT (Reuters) - Major automakers on Tuesday posted declines in U.S. new vehicle sales for April in a sign the long boom cycle that lifted the American auto industry to record sales last year is losing steam, sending carmaker stocks down. The drop in sales versus April 2016 came on the heels of a disappointing March, which automakers had shrugged off as just a bad month. But two straight weak months has heightened Wall Street worries the cyclical industry is on a downward swing after a nearly uninterrupted boom since the Great Recession's end in 2010. Auto sales were a drag on U.S. first-quarter gross domestic product, with the economy growing at an annual rate of just 0.7 percent according to an advance estimate published by the Commerce Department last Friday. Excluding the auto sector the GDP growth rate would have been 1.2 percent. Industry consultant Autodata put the industry's seasonally adjusted annualized rate of sales at 16.88 million units for April, below the average of 17.2 million units predicted by analysts polled by Reuters. General Motors Co shares fell 2.9 percent while Ford Motor Co slid 4.3 percent and Fiat Chrysler Automobiles NV's U.S.-traded shares tumbled 4.2 percent. The U.S. auto industry faces multiple challenges. Sales are slipping and vehicle inventory levels have risen even as carmakers have hiked discounts to lure customers. A flood of used vehicles from the boom cycle are increasingly competing with new cars. The question for automakers: How much and for how long to curtail production this summer, which will result in worker layoffs? To bring down stocks of unsold vehicles, the Detroit automakers need to cut production, and offer more discounts without creating "an incentives war," said Mark Wakefield, head of the North American automotive practice for AlixPartners in Southfield, Michigan. "We see multiple weeks (of production) being taken out on the car side," he said, "and some softness on the truck side." Rival automakers will be watching each other to see if one is cutting prices to gain market share from another, he said, instead of just clearing inventory. INVESTORS DIGEST BAD NEWS Just last week GM reported a record first-quarter profit, but that had almost zero impact on the automaker's stock. The iconic carmaker, whose own interest was once conflated with that of America's, has slipped behind luxury carmaker Tesla Inc in terms of valuation.

2015 Ford Transit Connect Wagon

The last time I tested a Ford Transit Connect, I needed to drive a group of friends to Boyne, MI, for a long weekend of skiing, snowboarding, and shenanigans. At roughly three hours, the trip is just long enough that my friends asked for something comfortable. A Range Rover would've been ideal. Perhaps a Mercedes-Benz GL or Cadillac Escalade. But no, I chose Transit Connect, to put Ford's small van formula to the test. The tiny van was near the end of its lifecycle in 2012, having debuted in Europe in 2003. Its age was reflected in its loud, underpowered, inefficient engine; noisy, harsh ride; and uncomfortable seats. It was so uncomfortable that we had to stop every hour just to stretch our legs. I didn't have such elaborate plans when this 2015 Transit Connect Wagon arrived in my driveway. But after a week behind the wheel, I can tell that road tripping in this van would be a far, far better experience. The most obvious change for the second-generation model is the styling. It's much better looking than the old TC, looking like the high-roofed spawn of a Focus and Escape. There are a few anomalies, though. First, note the word "Wagon" – that implies passenger van, while the cargo/work-minded Transit Connect is called "Van." Next, this Titanium model is only available on the longer-wheelbase, three-row Wagon. With the LWB configuration, the only tailgate option is a single-piece, lift-up hatch. If you want barn-style doors, get cozy with the short-wheelbase, two-row Transit Connect XLT. Regardless of body style, the Transit Connect Wagon's best styling feature is its enormous greenhouse that guarantees excellent visibility from any angle. The interior adopts a dash layout similar to the Focus. The heated leather seats – standard on the Titanium – are nice enough, but better still is that the chairs are actually comfortable now. The plastics on the dash and doors are still hard and scratchy, but fit and finish is solid. And with major contact points and switchgear that have been pilfered from other Ford products, including the steering wheel, the occasional bad bits in the cabin are easy enough to ignore. With room for three folks in the second row and two more in the back, the Transit Connect Wagon fills a role that is more utilitarian and spartan, but not much less versatile than traditional minivans. The middle row seats feature stadium-style raised seating, and both rows can slide forward and back or fold.

Detroit Three's lucrative pickup war intensifies as Ram makes big gains

DETROIT — The battle for profits from sales of large pickup trucks is intensifying among the Detroit Three automakers as sales of small cars in the United States shrivel. For decades Ford has had the single best-selling truck brand in its F-Series trucks. General Motors' Chevrolet brand was a solid No. 2, and Fiat Chrysler Automobiles' Ram was a distant third. Now, that hierarchy may be in flux. Sales figures for December and the fourth quarter released on Thursday show Ram tied with GM's Chevy for the No. 2 spot, as sales of the redesigned Ram pickup surged, fueled in part by demand for an optional 12-inch (30.48 cm) dashboard screen. Chevy not long ago held second place to Ford by a wide margin. GM executives said on Thursday they are bullish on their new GMC and Chevy trucks for 2019.Related: How the Detroit Three's pickups compare on paper 2019 Ram 1500 Laramie review 2019 Chevy Silverado 2.7L four-cylinder review 2019 Ford F-150 2.7L EcoBoost review "There's no doubt this segment (pickup trucks) is one of the epicenters of the auto wars," said Sandor Piszar, director of marketing for Chevrolet at GM. "It's been that way forever, and we wouldn't have it any other way." On Wall Street, investors give electric car leader Tesla a higher valuation than any of the Detroit automakers. But in the nation's heartland, big pickups remain far more popular and profitable than any electric car — and most other consumer vehicles of any kind. Large pickups generate at least $17,000 a vehicle in pretax profit for GM, the company has indicated in disclosures to investors. By contrast, many Detroit Three sedans are so unprofitable, their manufacturers have decided not to build them anymore. 'Hotly contested' Sustaining sales and pricing in the large-pickup segment will be critical in a year when most forecasters expect overall U.S. car and light truck sales to fall. Ford's U.S. sales chief, Mark LaNeve, on Thursday called the F Series "the backbone of our franchise" during a conference call, and added the "segment will continue to be strong, but hotly contested" in 2019. Automakers are banking on pickup truck sales to stay strong even if U.S. interest rates continue to rise. Rising interest rates translate into higher monthly car payments and are expected to deter some buyers in 2019. GM has said 27 percent of Chevrolet and GMC trucks — which can haul trailers by day and substitute for a luxury sedan by night — sell for more than $55,000.