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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: 1997 Acura 1.6 EL

Drivers from Mexico or Canada who take their cars across the border into the United States may drive them legally here for one year, after which they must drive back home or go through a registration process that ranges from arduous to impossible, depending on the state. As a result, quite a few Canadian- and Mexican-market cars end up marooned and un-registerable here, and I find some of them during my junkyard travels. Today, we've got a Canada-only Acura that showed up in a Northern California boneyard recently. I'm always looking for junkyard odometers with very high final readings (right now a 631k-mile Volvo 240 holds the record), and at first glance I though I had come across a Civic sedan with nearly 450,000 miles. Then I noticed the metric speedometer and realized that I was looking at a non-US-market car. 448,538 kilometers is 278,709 miles, by the way. A look at the build tag and emissions stickers showed that this car was built and sold in Canada. I'd found a second-generation Acura EL in a Colorado junkyard a few years back, so I knew that I'd just found a first-generation EL. Like its Acura Integra contemporary, the Acura EL was based on the Honda Civic. It replaced the Integra in Canada for 1997 and production continued through 2005. It differed somewhat in appearance from the Civic and had a nicer interior but was mechanically nearly identical to the US-market Civic EX sedan. A version for the Japanese market was built in Canada and exported across the Pacific as the second-generation Honda Domani. The engine is a 1.6-liter SOHC four-banger with VTEC, rated at 127 horsepower and 107 pound-feet. This one appears to be a loaded EL Premium, with the optional four-speed automatic. List price would have been C$22,000, or about $30,676 in 2023 United States dollars (using the exchange rate for June of 1997). The decklid had an EL-only spoiler, so a local Honda expert must have bought it for a Civic sedan. Since this car was old enough to be federally legal under the 25-year rule, it could have been registered legally in some US states… but California's strict emissions regulations would have made the process too difficult to be worth undertaking on a near-300k-mile machine that isn't particularly exotic.

Check out Honda's sweet stop-motion 'Power of Dreams' ad

Television advertising doesn't just have to be the necessary evil that pays for the shows that you want to watch, and Honda is absolutely proving that with a new two-minute commercial titled Paper. Using stop-motion animation and a heap of illustrated cutouts, the spot showcases what the Power of Dreams motto really means. It runs through highlights like the success in racing, automotive development, Asimo, the HondaJet, and even lawnmowers. The result of all that hard work is spellbinding. The entire two-minute spot already aired during a few NFL games, and doing that was a serious investment. According to Ad Age, during the time that the ad ran the estimated cost per 30 seconds was $300,887. Honda is also prepping a minute-long version for TV, but you can enjoy the whole thing right now in the video, above. HONDA BRINGS 'THE POWER OF DREAMS' TO LIFE WITH TWO-MINUTE COMMERCIAL CREATED BY STOP-MOTION ARTIST AND INFLUENCER PES Elaborate Paper-Flipping Technique Artfully Tells the History of Honda Honda Brand Marketing Tone — Simple, Clever and Emotional — Will Carry Through Across Upcoming Advertising to Help Build a Long-Term Emotional Connection with Consumers Sep 21, 2015 - TORRANCE, Calif. -- Capitalizing on Honda's established, strong brand identity and its core belief in "The Power of Dreams," the company is launching a two-minute commercial, "Paper," during CBS Sunday NFL on Sunday, Sept. 20. After months in the making, thousands of hand-drawn and -colored illustrations from multiple artists provide the platform for an intricate paper-flipping journey to beautifully show Honda's history and range of mobility products. "The goal is for the marketing itself to become a demonstration of Honda thinking and all the people that touch our wide range of products along the way," said Tom Peyton, Assistant Vice President of Marketing for American Honda Motor Co., Inc. "This commercial stands for the courage and conviction to imagine and make dreams a reality and speaks to Honda's innovative nature and respect for personal achievement and contributions." "The Power of Dreams" philosophy speaks to Honda's belief that drives the company's R&D and diverse array of advanced-technology products, and to the determination to bring them to market. This rejuvenated approach to overall brand marketing is the sum of Honda's best thinking and could only come from the company's years of design and innovation.