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The next steps automakers could take after sales drop again in April

DETROIT (Reuters) - Major automakers on Tuesday posted declines in U.S. new vehicle sales for April in a sign the long boom cycle that lifted the American auto industry to record sales last year is losing steam, sending carmaker stocks down. The drop in sales versus April 2016 came on the heels of a disappointing March, which automakers had shrugged off as just a bad month. But two straight weak months has heightened Wall Street worries the cyclical industry is on a downward swing after a nearly uninterrupted boom since the Great Recession's end in 2010. Auto sales were a drag on U.S. first-quarter gross domestic product, with the economy growing at an annual rate of just 0.7 percent according to an advance estimate published by the Commerce Department last Friday. Excluding the auto sector the GDP growth rate would have been 1.2 percent. Industry consultant Autodata put the industry's seasonally adjusted annualized rate of sales at 16.88 million units for April, below the average of 17.2 million units predicted by analysts polled by Reuters. General Motors Co shares fell 2.9 percent while Ford Motor Co slid 4.3 percent and Fiat Chrysler Automobiles NV's U.S.-traded shares tumbled 4.2 percent. The U.S. auto industry faces multiple challenges. Sales are slipping and vehicle inventory levels have risen even as carmakers have hiked discounts to lure customers. A flood of used vehicles from the boom cycle are increasingly competing with new cars. The question for automakers: How much and for how long to curtail production this summer, which will result in worker layoffs? To bring down stocks of unsold vehicles, the Detroit automakers need to cut production, and offer more discounts without creating "an incentives war," said Mark Wakefield, head of the North American automotive practice for AlixPartners in Southfield, Michigan. "We see multiple weeks (of production) being taken out on the car side," he said, "and some softness on the truck side." Rival automakers will be watching each other to see if one is cutting prices to gain market share from another, he said, instead of just clearing inventory. INVESTORS DIGEST BAD NEWS Just last week GM reported a record first-quarter profit, but that had almost zero impact on the automaker's stock. The iconic carmaker, whose own interest was once conflated with that of America's, has slipped behind luxury carmaker Tesla Inc in terms of valuation.

Xcar gets Lexus LFA serviced at TMG

Toyota has made all manner of vehicles, from sedans and hatchbacks to crossovers and pickup trucks. It's even done a handful of sports cars over the years. But it's only ever done one real supercar, and that was the Lexus LFA. The ten-cylinder supercar was built at the dedicated, purpose-built LFA Works, a facility within Toyota City in Japan that's since moved on to making everything from bicycles to hydrogen fuel cell vehicles. But if you were lucky enough to be among the 500 customers to get your hands on an LFA, you may not be inclined to send it back to the factory every time it needs servicing. Especially not if you live in, say, Europe. That's why Toyota Motorsport GmbH was tasked with handling service for the LFA for Europe. The facility in Cologne, Germany, was once home to the automaker's F1 team, now runs its championship-winning endurance racing team and will soon again serve as the home base for its renewed assault on the World Rally Championship. So it's just the type of facility that could handle whatever comes up with Lexus' high-strung exotic, from servicing the V10 engine to repairing the carbon-fiber chassis if need be. After checking out the underground collection in its last episode, the guys at Xcar popped their heads in at the LFA service center. There they spoke with TMG VP Rob Leupen, who seems convinced that Toyota should make a new hybrid supercar. We hope he turns out to be right.

Lexus IS commercial made with Instagram photos

Facebook was so 2010, so it's no surprise that automakers are taking advantage of newer social media applications for their marketing purposes. Most recently, Lexus invited more than 200 followers on Instagram ("Instagrammers"), along with their smartphones, to make a commercial of the 2014 Lexus IS using hundreds of their photos of the car strung together into a video.
Instagram, taking advantage of smartphone cameras, is an application that allows users to shoot, edit and share photos or video online with friends and strangers alike. Lexus's stop-motion Insta-commercial is unique as far as commercials go, with each photo in the sequence sporting a personal touch thanks to the app's photo editor. But, even more impressive is the ability of social media to bring people together for, and involve them in, a commercial shoot. All of which you can watch below. Stay tuned after the commercial to get a look behind the scenes at the making of it all.