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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.

GM resumes production of its 3.0-liter turbodiesel straight-six

General Motors temporarily stopped taking orders for trucks and SUVs equipped with the 3.0-liter Duramax turbodiesel six-cylinder engine in August 2021 due to a supplier shortage. Reports claimed the pause would last through 2021, but the engine is already back in production. Enthusiast website GM Authority learned from sources inside General Motors that the straight-six is once again coming off the assembly line at the Flint Engine Plant in Flint, Michigan. There's no official word on precisely what the problem was linked to and whether it was related to the on-going chip shortage that's wreaking havoc across the automotive industry. All we know is that the pause lasted for about two weeks. Called LM2 internally, the six is available in Chevrolet's Tahoe, Suburban, and Silverado 1500 and in GMC's version of these trucks. It's also an option in the Cadillac Escalade. It develops 277 horsepower at 3,750 rpm and a V8-like 460 pound-feet of torque at 1,500 rpm in every application, and it allows these big behemoths to post surprising fuel economy numbers. Fitted to a rear-wheel-drive Tahoe, the Duramax returns 21 mpg in the city, 28 mpg on the highway, and 24 mpg in a combined cycle, figures that make it more efficient than a Blazer. Demand for the diesel-powered trucks is relatively high. While the shortage undoubtedly took a toll on sales, the Duramax represented 8% of Suburban sales and 6% of Tahoe sales in May 2021. There are no other diesel-burning full-size SUVs available new so they have the market to themselves. On the truck side, Ram still makes the EcoDiesel available on some 1500 trims but Ford abandoned the segment. Related Video: Featured Gallery 2021 Chevrolet Tahoe RST View 24 Photos Chevrolet GMC Truck SUV Diesel Vehicles

GMC moved the headlights down on the 2024 Sierra EV to prevent glare

There are a lot of things that are different between the 2024 GMC Sierra EV’s design and the gasoline Sierra pickup, but one we noticed right away was the headlight placement. On GMÂ’s full-size gasoline trucks, the headlights are about as far up the front fascia as they can be. In the Sierra EV, theyÂ’re positioned significantly further down and into the lower bumper below the grille. Why are we highlighting this particular aspect of the design? Well, unless you only ever drive massive, high-riding trucks, youÂ’re probably very accustomed to being frequently blinded by them on the road these days. In describing the Sierra EVÂ’s headlight placement, designers told us they intentionally put the lights further down to improve matters. We pulled Phil Kucera, a GMC design manager, aside to ask him about the change. “It tends to be a better spot where itÂ’s not glaring in other peopleÂ’s eyes, right, the lower you get,” Kucera says. Beyond blinding others, putting the headlights lower on the face of the truck improves headlight performance for the driver, too. “Typically the lower the better, because thatÂ’s where theyÂ’re going to be on the road, so thereÂ’s less to reflect off of in fog or rain,” Kucera explained. “If you get them up at a certain height, theyÂ’re going to be reflecting certain things like snow, rain or things like that in your eyes.” 2024 GMC Sierra EV Denali Edition 1 View 13 Photos Of course, youÂ’ll notice on the Sierra EV that the daytime running lights (DRLs) are still big and bold in the upper part of the front end. These lights are around for decor, though, and act as pieces of design rather than a functional way to see at night. In other words, theyÂ’re lights, but theyÂ’re not going to dazzle oncoming traffic or cause glare for the driver like a headlight pointed down the road will.  Moving those lights further down in the front should hopefully be a net positive for other drivers coming across the Sierra EV and for drivers of the truck themselves. How the lights are aimed plays just as much a role in how other drivers perceive oncoming lights, though, so weÂ’ll have to wait and see the real-world performance on this one.  WeÂ’ll also note that moving the actual headlights further down the front end doesnÂ’t take anything away from the design of the Sierra EV. It still features a strong, upright stance that the world is accustomed to seeing from new trucks these days. ItÂ’s no surprise, but GM agrees.