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U.S. auto sales fall in July, as Detroit dials back on inventory, rental sales

DETROIT — U.S. carmakers said on Tuesday they continued to slash low-margin sales to daily rental fleets in July as General Motors, Ford and Fiat Chrysler Automobiles struggled to curb a slide in retail sales. July is on track to be the fifth straight month in which the annual pace of car and light truck sales declined from the same month a year ago, in part because of fewer fleet sales, analysts and industry executives said. July 2016 sales hit a strong 17.9-million-vehicle pace. GM said the seasonally adjusted annual sales rate fell to an estimated 16.9 million vehicles in July. At midmorning on Tuesday, GM shares were down 3.4 percent at $34.77, Ford was down 2.8 percent at $10.91, and Fiat Chrysler shares were down 0.3 percent at $12.05 in New York. GM sales dropped 15 percent from a year ago to 226,107 vehicles, as the company cut rental fleet sales more than 80 percent. The automaker said inventories of unsold vehicles at month's end were 104 days, down from 105 days at the end of June. GM has promised investors to reduce inventories to 70 days by year-end. Ford said its July sales dipped 7.5 percent to 200,212 vehicles, as it cut fleet sales more than 26 percent. Inventories fell to 77 days from 79 the previous month. Fiat Chrysler said sales dropped 10 percent to 161,477, as it also cut back sales to daily rental fleets. Among the top Japanese companies, only Toyota reported a year-to-year gain, with sales up 4 percent to 222,057 — just 4,000 units behind GM. Honda sales were down 1 percent to 150,980 — its first-quarter sales continuing to decline in North America but seeing a big increase in China. And Nissan sales fell 3 percent to 128,295. GM, Ford and Fiat Chrysler have cautioned that second-half financial results likely will be lower than first-half results, in part reflecting production cuts in North America and pricing pressures. The automakers this year have been deliberately dialing back sales to rental-car companies, which often generate little to no profit, while struggling to keep retail sales from sagging further, according to industry analysts. Industry consultant LMC cut its full-year forecast for new vehicle sales to 17 million vehicles. Automakers sold a record 17.55 million vehicles in the United States in 2016.

Honda teases racing motorcycle-powered concept for Frankfurt

With upcoming models like the next-gen Civic and NSX, Honda is working to return to its performance glory days. We'll see one more manifestation of that desire at the upcoming Frankfurt Motor Show with the Project 2&4 concept. The single teaser image leaves the styling to anyone's guess, but the vehicle is powered by the potent 1.0-liter V4 from the RC213V MotoGP race bike. Stuffing the high-strung motorcycle engine into the car should at least make a great noise. Unfortunately, Honda is keeping the details very scant in the teaser. The Project 2&4 has no cabin and is meant to combine "the freedom of a motorcycle and the maneuverability of a car." That suggests a low-slung, minimalist body with an emphasis on handling, and the image appears to show open wheels at the front and rear. The company also doesn't say whether it has the race bike's full competition engine with over 235 horsepower or the new street version with 157 hp to over 212 hp, depending on the spec. The Project 2&4's shape is the result of a global competition among the brand's studios. The winning design is the result of cooperation from the motorcycle stylists in Asaka, Japan, and the automotive team in Wako, Japan. We're curious to see what it actually looks like in Frankfurt. Honda to Showcase Re-energized Model Range at 2015 Frankfurt Motor Show Honda 2015 model range of entirely all-new and refreshed cars Global premiere of Honda Project 2&4 powered by RC213V, modified for public road use, showcasing Honda's uniquely creative engineering Honda UNI-CUB ? to make its German debut August 26, 2015 - The 2015 Frankfurt Motor Show underlines an important year for Honda and will see the brand presenting its new model range of entirely refreshed and all-new cars displayed together. Alongside the new line-up, Honda will also showcase design concepts and advanced technologies, all demonstrating Honda's unique creativity in meeting the personal mobility challenges of today and the future. Honda Project 2&4 Powered by RC213V – embodiment of creativity and craftsmanship The 2015 Frankfurt Motor Show will witness the global premiere of 'Honda Project 2&4'. A winner of the global design competition run by Honda between its global design studios, Honda Project 2&4 represents the company's drive to inspire and reward creative thinking.

Recharge Wrap-up: VW exec predicts EVs with 375-mile range

Volkswagen says EV ranges over 300 miles aren't too far in the future. Plug-in hybrids are merely a bridge to all-electric mobility becoming more practical for people who need to travel longer distances, according to Dr. Heinz-Jakob Neusser, Volkswagen's head of powertrain development. Energy density is increasing rapidly in new batteries. Speaking about the e-Golf, Neusser says, "I expect the next generation in 2015-17 will increase to around 300 km [186 miles] and the following step will be around 500-600 km [310-372 miles]." Neusser also says he believes that charging infrastructure will improve to catch up with these more advanced batteries. Read more at Motoring. BMW is offering higher incentives for the all-electric i3 than the range-extended version. More buyers are opting for the i3 REx, with its 78 extra miles of range. So, to move the standard i3 (which is already cheaper), BMW is offering $2,000 in incentives for October - double what is offered for the i3 REx. The added incentives help close the price gap between the BMW and other EVs with similar ranges. The deals won't last long, though. According to New Jersey BMW salesman Manny Antunes, BMW's current incentives are "as aggressive as they're going to get" for a while. Read more at Green Car Reports. Honda is changing its research and development process for all cars after a series of Fit Hybrid recalls. The hybrid version, which makes up more than half of all Fit sales in Japan, was the subject of four recalls within nine months. In response, Honda will change the way it develops cars worldwide, with one extra "gate" to pass in the process. Honda will do prototype testing earlier in the research process to see how separately developed components work together before moving onto the car's development phase. It will add time and cost to making cars, but Honda hopes it will help prevent problems - like those that come with a flurry of recalls - down the road. Read more at Automotive News. Featured Gallery 2015 Honda Fit Hybrid View 16 Photos Related Gallery 2014 Volkswagen e-Golf: Frankfurt 2013 View 15 Photos Related Gallery 2014 BMW i3: First Drive View 33 Photos News Source: Motoring, Green Car Reports, Automotive NewsImage Credit: Honda Green Plants/Manufacturing BMW Honda Volkswagen Electric Hybrid recharge wrapup