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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.

FIA levels F1 playing field for Honda

Formula One may place a high emphasis on technical innovation, but it also demands an equal playing field. So after the FIA regulations handed Mercedes a technical advantage for next season, a loophole was opened up to allow Ferrari and Renault to update their engines throughout the year. That left engine-supplier-to-be Honda in the dust, but now the motorsport governing body has awarded the Japanese automaker the same courtesy. As is often the case, the issue revolves around the specific wording of the regulations. Ferrari and Renault successfully argued that, contrary to its spirit, the letter of the law (or regulations, in any event) didn't actually specify when existing engine suppliers had to complete their revisions for the upcoming championship. The thing is that the rules were more clear when it came to new suppliers, so Honda was told that it would have to complete its design before the start of the season – unlike Ferrari, Renault and Mercedes, which would be allowed to continue development (albeit on a limited basis) throughout the year. Recognizing the inherent injustice of the resulting regulations, the FIA has consented to Honda's request that it be afforded the same opportunities as its rivals. The Japanese manufacturer, which returns to the paddock this season with McLaren, will therefore be allowed to make adjustments to its engines as its first season back on the grid progresses, just like the other engine suppliers. News Source: AutosportImage Credit: McLaren Motorsports Honda McLaren F1 fia regulations

Honda to recall 1.1 million U.S. vehicles to re-replace Takata airbags

Honda said on Tuesday it would recall about 1.1 million Honda and Acura vehicles in the United States to re-replace defective Takata airbags on the driver's side. The company said it was aware of one injury linked to the defect that may have caused the airbag to rupture when it was deployed in a crash. The vehicles involved in the recall were previously repaired using specific Takata desiccated replacement inflators (PSDI-5D) or entire replacement airbag modules containing these inflators. "Those replacement inflators," Honda said in a statement, "are now deemed defective." Free repairs of the recalled cars would begin immediately in the United States with replacement parts made by alternate suppliers, Honda said. Honda became aware of the issue after a Honda Odyssey crash, where the front airbag deployed and injured the driver's arm. An investigation later showed that manufacturing issues at Takata's Mexico facility introduced excessive moisture into the inflator during assembly, leading to the problem. The total number of recalled inflators is now about 21 million in about 12.9 million Honda and Acura vehicles that have been subject to recall for replacing Takata front airbag inflators in the United States, the company said. Automakers in the United States repaired more than 7.2 million defective Takata air bag inflators in 2018, as companies have ramped up efforts to track down parts in need of replacement. Recalls Acura Honda