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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.

NHTSA expands new Takata probe to 4 more automakers

DETROIT — The U.S. government's highway safety agency has launched an investigation into four additional automakers that have a potentially deadly type of Takata air bag inflator in their vehicles but have yet to recall them. The National Highway Traffic Safety Administration said in documents posted Thursday that it is investigating Audi, Toyota, Honda and Mitsubishi in connection with a Takata recall involving 1.4 million inflators. This brings the total number of manufacturers potentially impacted to five, as BMW was connected to the issue when it was brought to light earlier in December. The inflators made by the now-bankrupt Takata have a distinct and separate problem that can cause them to blow apart a metal canister and spew shrapnel into people's faces and bodies. The problem killed a driver in Australia who was in an older 3-Series BMW, which has already recalled more than 116,000 vehicles. The problem is so dangerous that in some cases BMW has told drivers to park their vehicles until repairs can be made. The safety agency says in documents that Takata didn't provide details on the affected makes, models or model years of vehicles with the defective inflators. So it is telling the companies to recall them promptly. The agency says that based on when the faulty inflators were produced, it's likely that the vehicles to be recalled came from the 1995 through 2000 model years. In letters to all four automakers, NHTSA says they have five business days to notify the agency after finding out about a safety defect. “If your company has not yet gathered enough evidence to make a determination that the subject air bag inflators present an unreasonable risk to motor vehicle safety, reply with a detailed work plan including the benchmark dates required to make the determination,” the agency wrote in letters to all four automakers dated Wednesday. A Honda spokesman said Thursday it hasn't determined yet whether its vehicles are affected, but a decision should be made soon. Audi, Mitsubishi and Toyota said they are still investigating. NHTSA has told the companies to respond by Jan. 17. On Dec. 4, NHTSA posted documents from Takata and BMW detailing the problems. The documents said the Australian driver was killed, while another Australian driver and a driver in Cyprus were injured. Unlike previous recalls, the Takata non-azide inflators do not use volatile ammonium nitrate to fill the air bags in a crash.

Honda nav concept replaces head unit with Android phone

The desire for better in-car tech without compromising safety is what led Drivemode co-founders Yo Koga and HK Ueda to create their auto-centric Android app. It presents a clutter-free UI specifically meant for driving. The single-button, no-look interface uses display-wide swipes and taps and presents audio cues to help keep your eyes on the road -- and not the glowing rectangle you have mounted to your dash. With over 400,000 downloads, the app has gotten the attention of not just drivers, but also major automakers, including Honda. The carmaker has partnered with Drivemode to create a concept vehicle that completely replaces the head unit with a phone. It's not just shoving an Android device into the dash either; the head unit is completely integrated with the car's controls. For instance, the buttons on the wheel that usually control the radio now control the app. Additionally, the backup and right-side blindspot cameras are now displayed on the phone too. Honda and Drivemode say this is still just a concept and potentially years away from actually happening. But it's part of a larger plan to build an app for automakers; a way to offer its software replacement for the traditional in-dash system. In the meantime, though, Drivemode is looking for other ways to make a bit safer. For instance, Ueda says the app will eventually support aftermarket Bluetooth backup and blindspot cameras. So, drivers can buy the cameras and mount them to their cars, allowing them to have an additional safety feature, even if their vehicle didn't have that option when purchased new. In particular, the Drivemode team sees an opportunity in lower-end vehicles that are less likely to come pre-installed with Android Auto or Apple CarPlay. The app replicates many of the features found in those systems which tend to be found in medium to high-end cars. For drivers who can't afford the trim levels that offer those smartphone-integrating options (or are are not looking to upgrade their whip), they can still enjoy a more integrated driving experience without weaving all over the road trying to launch Spotify. Unfortunately, the app is for Android only right now, but Drivemode is looking for additional funding to build an iOS version. Related Video: This piece by Roberto Baldwin originally appeared on Engadget, the definitive guide to this connected life. Auto News Honda android android auto nav