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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.

Struggling McLaren-Honda F1 partners near 'fork in the road'

WOKING, England - McLaren's partnership with Honda has not worked so far, and the team is now approaching a "fork in the road," executive director Zak Brown said on Wednesday. Speaking to Reuters in his office at the Formula One team's headquarters, Brown (pictured above) indicated clearly that a parting of the ways was a real option under consideration by management. The American said engine upgrades promised for this weekend's Canadian Grand Prix were not ready, and the Japanese manufacturer could not say when they might be. And while McLaren still wanted to win championships with Honda, there were serious concerns as to whether that was achievable. "Honda's working very hard, but they seem a bit lost," said Brown, who replaced Ron Dennis at the helm late last year. "We were only told recently that we wouldn't have the upgrade coming (for Montreal) ... and we don't have a definitive timeline, which is concerning because the pain is great and we can't sit around forever. "We were eagerly awaiting this upgrade as were our drivers, and it's a big disappointment that it's not coming. It's not lack of effort, but they are struggling to get it to come together."FAILURE AND EMBARRASSMENT McLaren, the second oldest and most successful team in Formula One after Ferrari in terms of race wins, are the only ones yet to score a point this season. They have not won a race since 2012. The renewed partnership with Honda in 2015 was billed as a return to the glory days, when French great Alain Prost and the late Brazilian Ayrton Senna dominated the late 1980s and early 1990s. Instead it has brought failure and embarrassment to the former world champions, whose cars have failed to finish races -- and sometimes even start them -- due to engine failures. Spanish driver Fernando Alonso, a double world champion whose future is uncertain, said in March that "we have only one problem, and that is the power unit. There is no reliability and there is no power." Honda's engine troubles even plagued Alonso at the Indy 500, where a failure took him out of the race. McLaren were ninth in 2015, sixth last year and this season could become their worst ever. MARCHING ORDERS "The executive committee have now given us our marching orders," said Brown, who is also chairman of the fast-growing Motorsport Network media group. "We're not going to go into another year like this, in hope." "I don't want to get into what our options are.

2016 Honda Pilot earns IIHS Top Safety Pick+ score

The 2016 Honda Pilot earned a Top Safety Pick+ rating after tests by the Insurance Institute for Highway Safety. The crossover scored the agency's top Good score in all five evaluations, including the often tricky small-overlap frontal crash. The latest results give the 2016 Pilot the highest possible results from both NCAP and IIHS. In the small-overlap frontal crash, there were only four inches of intrusion in the passenger compartment, and the airbags did their job of protecting the dummy's head. Sensors showed a low risk of significant injuries. In comparison, the IIHS gave the 2015 Pilot Good scores in four tests, but the CUV had a Poor rating, the agency's lowest, in the small-overlap test. The optional Honda Sensing suite of safety functions put the Pilot over the top for the + score, and the tech earned a superior rating from the IIHS. The system combines a windshield-mounted camera and radar behind the grille and is available on the EX trim and above. It includes collision mitigating braking, a forward collision warning, lane keeping assist, lane departure warning, adaptive cruise control, and road departure mitigation. Related Video: All-new 2016 Honda Pilot Earns a 2015 TOP SAFETY PICK+ Rating from the Insurance Institute for Highway Safety (IIHS) Aug 21, 2015 - TORRANCE, Calif. 2016 Pilot offers the most comprehensive set of advanced safety and driver-assistive technologies ever available on a Honda vehicle Available Honda Sensing™ suite of advanced safety and driver-assistive technologies combines camera and radar systems to help detect vehicles, pedestrians and roadway markings Honda's aims to reduce collisions, injuries and fatalities involving its vehicles, using Honda Sensing™ technology The fully redesigned 2016 Honda Pilot (automobiles.honda.com/pilot/) has received a 2015 TOP SAFETY PICK+ rating from the Insurance Institute for Highway Safety (IIHS) when equipped with optional front crash prevention, bringing Honda one step closer to fulfilling the company's goal to be the first three-row mainstream SUV with the highest available U.S. government (NCAP) and IIHS safety ratings. This IIHS distinction includes a top rating of GOOD in five IIHS crash test modes including a top score of GOOD in the Insurance Institute's stringent small overlap frontal crash test.