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Trucks, SUVs — and Camry — shine in mixed U.S. January vehicle sales

DETROIT — Automakers posted mixed U.S. new vehicle sales data for January, with American consumers continuing to abandon passenger cars for the larger pickup trucks, SUVs and crossover models that manufacturers also love because they are far more profitable. Total industry auto sales for the month rose 1 percent versus January 2016. According to Autodata Corp, which tracks industry sales, the seasonally adjusted annualized rate (SAAR) of U.S. car and light truck sales in January fell to 17.12 million units from 17.44 million a year earlier. Analysts polled by Reuters had expected a January SAAR of 17.2 million units. U.S. auto industry sales fell 2 percent in 2017 to 17.23 million vehicles after hitting a record high in 2016 and are expected to drop further in 2018 despite a solid economy. Interest rates are rising and around 4 million late-model used cars will return to dealer lots this year to compete with more expensive new ones. Automakers have used consumer discounts to boost sales, a growing concern for observers who say this undermines resale values and profits. Discounts declined in January, but remained above 10 percent of manufacturers' recommended prices. ""I think the industry has accepted that (sales) volumes will fall somewhat in 2018 ... and I don't think the industry is going to go over the cliff with insane incentives," Mike Jackson, chief executive officer of AutoNation Inc, told Reuters after his company, the largest U.S. auto retail chain, posted a higher quarterly net profit. Mark Wakefield, head of the North American automotive practice for consultancy AlixPartners, had a gloomier perspective. The industry's less-than-stellar sales performance for January showed "we are now past the peak," he said. "Automakers are now selling the deal instead of the vehicle," he said. "That's a tough spot to be in because that treadmill is hard to get off once you're on it." General Motors January sales rose 1.3 percent, driven by a 16 percent rise in fleet sales. Sales to consumers fell 2.4 percent. GM posted strong gains for models such as the Silverado pickup truck and Equinox crossover model, while its passenger cars continued to struggle. Ford The Blue Oval posted a 6.6 percent sales decline for January, with retail sales down 4.3 percent. Sales of Ford's F-Series pickup trucks - America's best-selling vehicle brand for decades — rose 1.6 percent. Passenger cars were down more than 23 percent.

530,000 Hondas, Acuras under expanded NHTSA investigation for steering problem

Earlier this year, the National Highway Traffic Safety Administration opened an investigation into the 2022 and 2023 Honda Civic. The agency had received 145 complaints from owners stating that the car suddenly exhibited “sticky steering” and increased steering effort. WeÂ’re now learning that the investigation is expanding to include hundreds of thousands more cars. The original probe included around 238,000 Civics, but the NHTSAÂ’s latest report, issued Friday, noted that the investigation is expanding to include more than 530,000 Hondas and Acura vehicles. The 2022 and 2023 Honda Civic, 2023 Honda CR-V, and 2023 Acura Integra are affected. A drastic increase in complaints drove the expansion, as the NHTSA said it had received 1,300 reports and was aware of at least 14 crashes related to the problem. An alarming 11 of those crashes involved a roadway departure due to loss of steering control. Two of them came after the driver allegedly overcorrected, and there are three known injuries from the crashes. NHTSAÂ’s report found that the problem happened primarily in the winter months and after the car had been driven in a straight line for an extended period to warm up the vehicle and gear. Though alarming, itÂ’s worth noting that this investigation has not yet reached the recall stage. Honda acknowledged the problem, noting that it was a manufacturing issue for the steering gear unit. The manufacturing process created conditions that could cause greater internal stress, which can wear and deform the gears inside the steering component. The NHTSA also found that the factory did not guarantee consistent lubrication throughout the gear, which could be the cause of the temporary increase in steering effort. The automaker directed its dealers to replace the electronic power steering gearbox to correct a manufacturing defect, but NHTSA will continue its process, moving to an engineering analysis. If that study finds a defect, it could request a recall. Government/Legal Acura Honda Safety

Takata allegedly hid failed airbag rupture tests in 2000

New evidence suggests Takata engineers knew about the dangers of the supplier's ammonium-nitrate-propelled airbag inflators as early as 2000, but employees hid or even destroyed test results. The allegations came out in a pre-trial hearing in a civil suit from a woman who claims that a forcefully deploying airbag in her 2001 Honda Civic paralyzed her. The pre-trial hearing included an examination of a deposition from Thomas Sheridan, a former Takata airbag engineer, to see if the evidence was admissible for the case, according to the New York Times. Sheridan alleged that Takata created a report for Honda in June 2000 that showed the parts failed, but the supplier hid the testing data. The company also reportedly got rid of the ruptured components so that there was no physical evidence. "But when I went to look for the parts, because some of the parts had come apart, they were no longer available. They had been discarded," he said in the deposition, according to the Times. Takata disputes these allegations, and one of the company's lawyers asserts the inflators in the 2001 Civic are safe. "None of them have ruptured, zero," attorney David M. Bernick told the Times. "We have no evidence, in fact we have evidence to the contrary, that this inflator was defective at the time of the accident." However, Honda has recalls for the driver's side airbag in the 2001-2005 Civic. Previous reports also indicated some Takata employees allegedly knew the inflators were dangerous. For example, an investigation by the Wall Street Journal in 2015 cited internal memos from US employees in 2000 that complained that their counterparts in Japan altered or hid the results of failed validation tests. The New York Times also found evidence of engineers joking about manipulating results. The first Takata inflator recall came on Isuzu models in 2001, and automakers have recalled millions of vehicles around the world since then. Several companies, including Honda, have pledged to stop using Takata's inflators, and he US government fined the supplier $70 million last year. Related Video: