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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.

Houston repair shop disappears and takes man's Lexus with it

A man in Houston, Texas, is out his sweet new Lexus after the small-time repair shop he took it to just up and disappeared along with his car last month. According to KPRC, Randy Exom purchased a Lexus ES300 back in November and immediately took it to On Site Auto Repair in Northwest Houston to deal with some used car issues. To pay for the work, Exom set up a bi-weekly payment plan with the shop's owner. This arrangement worked out fine until January 19, when Exom showed up to make his payment and discovered that the shop had disappeared. "Everything was going fine up until I came there to make a payment and there was an eviction sign posted, sign on the door, and the regular cars that were in the lot weren't there anymore," Exom told KPRC. Eventually, he was able to reach the shop's owner to get an explanation but it wasn't the one he wanted. "I gave him a call and I said, 'Hey, there's an eviction notice here. Did you move?' He said, 'Yeah, I'm at 59 and Little York now." The fact that the owner didn't give him an exact address raised some alarms, and upon further review it seems that Exom's suspicions were justified. It turns out that the shop's owner, Shawn Gee, has a history of shady automotive dealing. Last fall, KPRC reported cases of cars going missing from a shop at 59 and Little York. That shop, which is now closed, was owned by Gee's brother. On February 10, Exom finally found his car in an impound lot with the rest of the cars from Gee's shop nearly a full month after it went missing. He told KPRC that the impound lot wants $800 to release his car. He told reporters that he wished Gee had called him and worked the situation out like a real businessman. "My thing is my car was in your possession and you should have made some type of contact with me and say, 'Hey this is what's going on, sir,'" he said. KPRC reached Gee by phone on February 10 and he declined to give an on-camera interview. He did confirm the eviction and said that he was working with customers to get their impounded vehicles back. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. News Source: KPRC Auto News Weird Car News Lexus houston impound

Lexus' hoverboard 'is like floating on a cushion of air'

The Lexus hoverboard is real, folks. It's not computer-generated imagery you're looking at, and it's not smoke and mirrors. In fact, what looks a lot like smoke emanating from below the Japanese luxury brand's hoverboard is actually caused by the liquid nitrogen required to keep the 'board's insides cool. How cool, you ask? Put it this way: liquid nitrogen freezes at -346 degrees Fahrenheit. Ice cold, baby. If there is a bit of tricky deception in the video you see above, it's that the superconductors Lexus is using in its hoverboard will only cause the machine to lift off surfaces that are magnetic. In other words, a skatepark full of concrete won't work. For that matter, in true Back To The Future style, neither would water... even if you've got power. Does any of that techno mumbo-jumbo even matter, though? What we have here is a real-life hoverboard that doesn't look like a poorly conceived high-school science project (no offense to Hendo, featured in the video below). The Lexus hoverboard is beautiful, with bamboo decking, a carbon fiber base and, let's be honest, that awesome special-effects-style smoke. Ross McGouran, a professional skateboarder, seems to agree with our assessment of the merits of the Lexus hoverboard. In a new video from the automaker that you can watch above, McGouran compares the hoverboard to regular skateboards and says riding Lexus' invention is like floating on a cushion of air. Which sounds equal parts difficult and amazing. We look forward to more from McGouran and Lexus. Related Video: Related Gallery Lexus Hoverboard View 9 Photos News Source: Lexus via YouTube Design/Style Toys/Games Lexus Technology Gadgets Future Vehicles Special and Limited Editions Videos