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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.

Acura ILX Type S could get 300-hp turbo four

There's good news and bad news when it comes to the new Honda Civic Type R. The good news is that after more than a year of prototypes and concepts, the Japanese automaker's new hot hatch is about to make its production debut next month. The bad news is that it's not coming here, but there is a silver lining in even that dark rain cloud – namely, that Honda plans on slotting its 2.0-liter VTEC turbo four into something that it will actually offer Stateside. Earlier rumors suggested the US donor vehicle would also be a Civic, but the latest intel indicates it could be something different, albeit related. According to Car and Driver, which spoke recently with Acura product planning manager Gary Robinson, Honda's luxury division could be gearing up to shoehorn the engine into the recently updated ILX – which itself is based on the Civic. "Acura is always going to get the best engines Honda makes," said Robinson. "Obviously a 2.0-liter turbo is more of a must-have in the luxury world than it is in the mainstream" market, suggesting that an ILX Type S could be in the works with upwards of 300 horsepower. Getting it to fit, though, could prove a rather large challenge – and could mean the engine swap would have to wait until the next-generation model comes around. Considering that the ILX was just updated for 2016, C/D doesn't expect the full redesign to come until 2018 at the earliest. Here's hoping that if it takes that long, Honda will slot the engine into something else for US showrooms in the meantime. The revival of the Type S badge in and of itself, however, makes for an enticing prospect. The last time we saw it used was on the larger TL sedan, which upgraded the 3.2-liter V6 from the 225 horsepower to 260. Before that, the RSX jumped from 160 horsepower in the base model to 200 in the first Type S, 210 in the second and 217 in the ultimate Type R. As it stands, the new ILX (after dropping the hybrid and base 2.0 models, is powered exclusively by a 2.4-liter inline four with 201 hp on tap.

Honda Civic Hatchback prototype unmasked

The US hasn't had a Honda Civic hatchback since the seventh-generation model on sale from 2001 to 2005, and over the past 11 years we've watched from afar as Honda cut and polished the Euro-market Civic hatch into a gem of lusty beauty. We will get our turn in 2017 with the tenth-generation model, about to make its debut at the Geneva Motor Show as a "prototype" that is a thinly-disguised production model. Compared to the ninth generation currently on sale over The Atlantic, this concept is stronger, sharper, and more sculpted throughout, but especially up front. The curving hoodline on the current car that falls in an undisturbed arc down to the bottom of the front bumper gets straightened out, sitting atop a bluff face packed with jutting features. Sheetmetal peaks and troughs carve up the sides, and the rear hatch emphasizes the angular and distinctions between features like the tailgate and arching boomerang containing the C-shaped lights. Production features on a base model will undoubtedly be toned down, but we could see this concept making for a fine Si or Type R trim, if we're being especially hopeful. View 15 Photos Proportions increase a smidge, the new car 5.1 inches longer, 1.8 inches wider, and sitting .7 inches lower. That puts it about 1.2 inches shorter than the Civic Coupe on sale in the US. The European launch goes down early next year, the US to follow after that. You'll find a little more info in the press release below, we'll have live shots from the show floor as soon as we can. Related Video: CIVIC HATCHBACK PROTOTYPE REDEFINES HONDA'S CORE MODEL FOR EUROPE • Prototype of the next-generation Civic hatchback makes its global premiere at the 85th Geneva International Motor Show • Assertive stance and distinctive new design establishes 10th generation as the sportiest Civic ever • Low, wide proportions and long wheelbase promise engaging driving dynamics while maximising interior space • New Civic hatchback will be available in Europe early in 2017 and will be built at Honda of the UK Manufacturing (HUM) Geneva, March 1, 2016 - The next-generation Civic hatchback makes its global debut in prototype form at the 2016 Geneva Motor Show. The design of the prototype heralds a significant step-change from previous versions of Honda's core European model, focusing on provocative design and rewarding driving dynamics. The all-new Civic hatchback will be 30 mm wider, 20 mm lower and 130 mm longer than the current generation.