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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.

Handful of 2022 GMC Hummer EVs recalled for malfunctioning taillight - Updated

[Update: A GM spokesperson reached out to let us know that all customer vehicles have already had this recall addressed.] GMC announced this morning that its gargantuan new electric Hummer is the subject of its first recall campaign. It's a small campaign — approximately 10 units — but a nonetheless important one, as GM says a software glitch can cause its taillights to behave erratically, by either illuminating when they shouldn't or by failing to illuminate when commanded.  "Taillight software can cause one or both rear taillights to become inoperative, or remain fully or partially illuminated," GM's report said. "If a taillamp remains fully or partially illuminated, some or all of these taillamp functions will remain activated at all times, even after the vehicle is turned off, A taillamp that fails to illuminate or illuminates incorrectly may reduce the visibility of the vehicle or communicate incorrect information to other road users, increasing the risk of a crash." GM's description of the number of potentially impacted units is inconsistent between documents submitted to NHTSA. Some say nine units; others say 10 or 11. Regardless, it's a small number and all vehicles in customer hands have already been fixed. The remedy was a simple one; the tail lights themselves merely needed to be replaced and everything should behave just fine. Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

2021 GMC Canyon AT4 Off-Road Performance Edition is ready to hit the trail

GMC introduced a more capable Canyon AT4 named Off-Road Performance Edition that gains modifications like skid plates and a beefier suspension. It can venture further off the beaten path, but it won't get there faster. Based on the AT4, which is already better suited to venturing into the woods than the standard Canyon, the Off-Road Performance Edition gains a taller suspension and loses its sizeable front air dam to offer a 30-degree approach angle. GMC knows adventurers will be tempted to put that figure to the test, so it also added skid plates made with 5/32-inch aluminum to protect the radiator, the front differential, the steering gear, and the oil pan. Full-length rock rails on both sides shield the rocker panels from expensive encounters with boulders and other obstacles. Finally, the Off-Road Performance Edition stands out from the AT4 with specific 17-inch wheels painted in gloss black, black AT4 logos, and black exhaust tips. 31-inch Goodyear Wrangler tires come standard. Changes in the cabin are limited to floor liners. Out back, the cargo box receives a spray-in liner. Don't look for Ram 1500 TRX-like performance, because it doesn't sound like GMC made any major mechanical modifications to the Off-Road Performance Edition. Power comes from a 3.6-liter V6 that sends 308 horsepower and 275 pound-feet of torque to the four wheels via an eight-speed automatic transmission and an automatic locking rear differential provided by Eaton. AT4 buyers can order a 2.8-liter Duramax turbodiesel four-cylinder with 181 horsepower and a stout 369 pound-feet of torque on tap for an additional $4,375, but there's no word yet on whether this fuel-saving engine will be available on the Off-Road Performance Edition, too. GMC's 2021 Canyon AT4 Off-Road Performance Edition will go on sale later in 2020, though pricing information hasn't been announced yet. For context, the standard AT4 costs $39,395 in its most affordable configuration.