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Trucks, SUVs drive U.S. October new vehicle sales

DETROIT — Major automakers posted mixed U.S. new vehicle sales in October on Wednesday, though America's love affair with high-margin pickup trucks and SUVs remained in full bloom as larger, pricier vehicles fared better than passenger cars. Auto industry publication WardsAuto put the seasonally-adjusted annualized rate (SAAR) for light vehicle sales in October at a robust level of 18 million units. But after a long boom cycle, carmakers are still ill-prepared for the slight decline in sales anticipated for full-year 2017 and have taken too few steps to trim production, said Doug Mehl, a partner in consultancy A.T. Kearney's automotive practice. "When you make a new vehicle, you have volume assumptions tagged to it, and who wants to be the guy who says, 'I'm going to make less of this really cool model'?" Mehl said. "But eventually the market is the reality, and it's going to force companies one way or other here." General Motors GM reported a sales drop of 2.2 percent for the month, with consumer sales down 6.6 percent. But sales of high-margin pickup trucks, sport utility vehicles and crossovers all rose. GM also cut its inventory of unsold vehicles — a source of concern for the market — slightly. The automaker has worked to reduce its volume of excess inventory, including through significant production shutdowns in the third quarter. GM had said its inventory would rise in October. "We are heading into the fourth quarter with good momentum, thanks to a strong U.S. economy and very strong pickup and crossover sales," said Kurt McNeil, GM vice president for U.S. sales operations. GM slightly reduced consumer discounts as a percentage of average transaction prices to 13.5 percent, from 13.7 percent in the third quarter. Industry experts believe consumer discounts above 10 percent of the average transaction price are unhealthy as they erode resale values and are unsustainable in the long term. Consultants J.D. Power and LMC said last week that based on preliminary October sales numbers, discounts have exceeded 10 percent in 15 of the past 16 months. Ford The U.S. auto industry posted record sales of 17.55 million vehicles in 2016. New sales received a strong boost in September as consumers replaced vehicles damaged in southeast Texas by Hurricane Harvey the previous month. Full-year 2017 sales are expected to be slightly lower than 2016.

Sonic-themed Honda Civic spin-dashes into Comic-Con

Prepare to feel old video gamers – Sonic the Hedgehog, the speedy, spiky avatar of early 1990s Sega enthusiasts turns 25 this year. And in celebration of Sonic being old enough to rent a car, Honda put together a celebratory Civic in time for the awesome nerd fest that is San Diego Comic-Con. The Sonic Civic, as Honda's taken to calling it, features a vinyl wrap over parts of the Sonic Blue body, while the Sonic Yellow accents add some pleasant contrast. Honda went with two different wheel colors for the Civic – the rears honor Sonic's iconic red-and-white sneakers and the fronts are reminiscent of the long-running series' gold rings. It's pretty obvious Honda aggressively lowered the Sonic Civic's ride height, too. We don't have interior images, but Honda claims the blue theme carried over to the Katzkin leather seats. In the trunk is a pair of ten-inch, 500-watt Rockford Fosgate subwoofers, a pair of 400-watt amps, and a flip-up, 32-inch TV for play throughs of Sonic's classic adventures. Cool upgrades, but where's the performance stuff? Speed is Sonic's defining characteristic, so it seems a little strange that a car built in his honor is rocking a base 1.5-liter, turbocharged four-cylinder. Related Video: Featured Gallery Honda Sonic Civic for Comic-Con 2016 News Source: HondaImage Credit: Honda Auto News Toys/Games Honda Economy Cars Sedan sega

Honda exec says US market near capacity, could hurt subprime buyers

Is there a point in the US auto industry where companies should start considering the welfare of their customers ahead of selling more cars? American Honda Executive Vice President of Sales John Mendel thinks that level exists, and we may be getting very close to it.
According to Automotive News, Mendel believes that finding more customers in the market could require pursuing subprime buyers and offering longer-term loans. However, he refuses to use those tactics. While selling models this way can improve things briefly, the strategies hurt resale prices and lower vehicle profits over time. The company won't do "stupid things in the short-term that damage the person who bought yesterday," he said to Automotive News. "It's a very, very short-term tactic especially in the subprime area."
American Honda, which combines the Acura and Honda brands, has seen market share decline from 9.7 percent to 9.1 percent through July 2014, according to Automotive News, and Autoblog's By the Numbers stats showed it posted falling sales in five of the seven months with data this year. Though, Mendel claims that was partially because the company focused on retail sales over fleets. The delays of the launches for the Honda Fit and Acura TLX likely didn't help either.