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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.

Aluminum Ford F-150 earns five-star crash rating [w/video]

The scores are in, and the 2015 Ford F-150 has been awarded a five-star Overall Vehicle Score in the National Highway Traffic Safety Administration's testing. That makes it, according to Ford, the safest F-150 ever. "The five-star safety rating is a terrific example of One Ford collaboration and innovation," Vice President of Global Product Development Raj Nair said in a statement. "Our truck team worked together for years to deliver this accomplishment, using an unprecedented combination of advanced materials throughout the all-new F-150. The 2015 model is engineered to be the safest F-150 ever, which matters to customers who depend on this truck to not only get the job done, but also get them safely home." The new F-150's aluminum and high-strength-steel construction posed some unique challenges to truck's engineers. "The team had to invent new ways to manage crash energy, because advanced materials like high-strength steel behave differently," Matt Niesluchowski, the truck's safety manager. "We found that changing certain shapes led to a weight reduction, while also improving crash performance." Beyond the structural safety features, the 2015 F-150 is loaded with additional safety features, including an adaptive steering column and Ford's inflatable seat belts, that protects drivers in the event of a collision. Beyond that, there's the usual array of active safety features meant to prevent a crash in the first place, including Curve Control and forward collision warning with brake support. Check out Ford's full press release on its five-star score, as well as video on the truck's safety features.

Experts wonder if aluminum F-150 gives Ford a real advantage

There's no doubt that Ford is taking a risk in producing the body of its upcoming new F-150 pickup truck in aluminum. What is up for debate, however, is whether aluminum was a wise risk to take in the first place. Wards Auto took the opportunity to poll some experts on the subject of aluminum versus steel in the automotive sector, with somewhat unsurprising results.
Richard Schultz, a project consultant at Ducker Worldwide, which bills itself as "a leading aluminum industry consultant (though they also deal in steels), suggests that the potential drawbacks to aluminum - higher costs, lower supply - aren't really impediments to the auto industry's increased acceptance of the lightweight metal.
Similarly, Randall Scheps, global automotive marketing director for Alcoa, a massive aluminum producer, counters claims that aluminum is less safe for vehicle occupants, suggesting that the use of aluminum can actually increase safety as it could potentially allow for larger vehicles with more crush space than steel.