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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.

Junkyard Gem: 1992 Acura Vigor

Honda was the first of the Japanese car manufacturers to bring a separate luxury brand to the United States, with the (Civic-derived) Integra and (Rover-related) Legend appearing as 1986 models. By the early 1990s, Infiniti and Lexus had muscled in with their own gadget-laden luxury machines, with even Mitsubishi and Mazda offering legitimate competition for the two Acura models. Something had to be done, in the viewpoint of Soichiro Honda, and so the NSX sports car was introduced as a 1991 model, followed by the Vigor luxury sedan the following year. Here's one of those rare first-year Vigors, found in a Denver self-service boneyard recently. The idea behind the Vigor (which, like the Integra, Legend and NSX, was badged as a Honda in its homeland) was that it would squeeze in between the Integra and the Legend and steal some sales from the Lexus ES 250 as well as European machinery. The Vigor was a front-wheel-drive car, but its engine was mounted longitudinally and angled to clear the hood. The differential sat directly beneath the engine and received power via a tortured maze of shafts. The reason for all this powertrain complexity was the fact that the Vigor's engine was a SOHC straight-five that wouldn't fit the engine compartment using Honda's usual transverse mounting (though both Daewoo and Volvo managed the feat with straight-six engines later on). The U.S.-market Vigor's 2.5-liter five-banger was rated at 176 horsepower and 170 pound-feet. The base transmission was a five-speed manual, but this car has the optional $750 four-speed automatic ($1,696 in 2024 dollars). This car is the cheaper Vigor LS model, so its MSRP was $24,999 ($56,539 after inflation). You could get a slightly smaller but still feature-laden '92 Honda Accord EX for just $20,175 ($45,629 now), though, and the cushier (though less nimble) Lexus ES 250 started at just $21,300 ($48,173 in today's money). American car shoppers just couldn't figure out the Vigor, and sales were weak. 1994 was the final year for the Vigor, and the TL replaced it beginning as a 1996 model. This one drove just over 160,000 miles during its life. Don't think of it as a drive to work. Think of it as a 30-minute vacation. If you get a German luxury sedan instead of a Vigor, you'll be sorry! I miss you… S. As was nearly always the case during the 1980s and 1990s, the JDM commercials were more fun.

Honda Accord under investigation due to airbag failures

The National Highway Traffic Safety Administration is opening a preliminary evaluation into the possibility of airbags not deploying in the 2008 Honda Accord. The agency has received 19 reports, including one injury, of the airbag control module failing, and the part is on an estimated 384,000 of the vehicles in the US. "For vehicles with a failed SRS module, some or all of the airbags may be unavailable in a crash warranting deployment," NHTSA's investigation says. Drivers are warned when the part stops working by a light on the instrument panel, but several of these reports indicate the module is unable to show diagnostic trouble codes when being inspected. The only way to fix the issue is to replace the whole component, and the Detroit News reports that can cost $500 or more. NHTSA's preliminary evaluations investigate "the scope, frequency, and consequence" of a problem and don't necessarily mean a recall is warranted. INVESTIGATION Subject : SRS Module Failure Date Investigation Opened: AUG 18, 2015 Date Investigation Closed: Open NHTSA Action Number: PE15029 Component(s): AIR BAGS All Products Associated with this Investigation close Vehicle Make Model Model Year(s) HONDA ACCORD 2008 Details Manufacturer: Honda (American Honda Motor Co.) SUMMARY: ODI has identified 19 VOQ reports alleging failure of the air bag SRS control module. One of the reports involved a frontal crash event where the frontal air bags did not deploy. The crash resulted in an injury to the driver and lone occupant, and the vehicle was subsequently inspected by the agency. According to the reports, the failure of the SRS module is indicated by the air bag readiness indicator lamp illuminating on the instrument panel. Consumers report the SRS control module had to be replaced to correct the condition. Several reports indicated that the SRS module was unable to communicate thus preventing diagnostic trouble codes from being retrieved. An inability of the SRS unit to communicate raises concern about the readiness of the entire supplemental restraints system. As a result, for vehicles with a failed SRS module, some or all of the air bags may be unavailable in a crash warranting deployment. ODI is opening this investigation to further evaluate the scope, frequency, and consequence of the alleged SRS module failures.