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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.

Lexus ROV concept is a hydrogen-powered luxury side-by-side

Side-by-sides come in all shapes and sizes, but we've never seen one like the Lexus ROV concept. For one, it's a Lexus; the firm is not a big player in the side-by-side segment. It's as luxurious as the badge on its nose suggests, and it's powered by a hydrogen-burning engine. Lexus explained that the ROV (an acronym that stands for Recreational Off-highway Vehicle) is its "response to the growing passion for the outdoors and adventurous spirit of luxury consumers." It also illustrates the brand's wish to design lifestyle-oriented products, and it showcases the engineering department's research into new technologies. The ROV stretches 322 inches long, 68 inches wide and 71 inches wide. And, while it doesn't wear a giant spindle grille, it falls in line with the Lexus design language thanks to angular body panels. Inside, the ROV offers a pair of seats with harnesses and suspension elements to filter out bumps, carbon fiber accents and a relatively simple instrument cluster with an analog tachometer and a digital display. Lexus notes that the "Tazuna" approach to interior design that has shaped most of its recent concept cars permeated the ROV, meaning the cabin is human-centric. Interestingly, it also points out that the ROV meets the same quietness, durability, and reliability standards as the regular-production cars it sells, which is no small feat. Power comes from a direct-injected 1.0-liter engine that burns compressed hydrogen stored in a tank. Lexus didn't publish technical details so we don't know how much horsepower or torque the engine makes. Its cylinder count wasn't even published, though zooming in on the exhaust manifold confirms that it's a three-cylinder. It's likely not a coincidence that parent company Toyota tested a hydrogen-powered Corolla race car powered by a 1.0-liter hydrogen-burning triple earlier in 2021. That engine was turbocharged, however; this one is not. Looking at the center console reveals the ROV is equipped with a two-speed transfer case and locking differentials, so it should be capable off the beaten path. Lexus also tells us its first side-by-side offers users a large amount of suspension travel. Is this purely theoretical, or is Lexus serious about taking on Polaris? We've asked, and we'll update this story if we learn more. Related Video:      

Lexus NX, BMW i3 to get Super Bowl commercials

At this point last year, we'd been getting news on automotive-focused Super Bowl commercials for more than two months. The teasers hadn't come out yet, but manufacturers lined up for the super-expensive spots were making their intentions known. This year? Almost nada, until this week. BMW has said it will air a 60-second spot promoting the i3 during the first quarter of the game, the Munich firm returning to The Big Game after a four-year absence. BMW says, "Big ideas like the BMW i3 take a little getting used to, and the creative idea surrounding our spot will play on this analogy." We say that pitching a tiny range-extended hatchback during the beer-iest American sports orgy of the year should make for some neat commentary afterward. Lexus is putting its new NX crossover in the second Super Bowl commercial it's ever aired, eschewing the glitter of celebrities and glamor for a straight-shooting spot and the tagline, "Be seen, be heard, make some noise." Joining those two are Kia, Mercedes-Benz, Nissan and Toyota. The six confirmed carmakers are down from eleven last year, when car spots made up a quarter of the total ad time. The price to do business for 30 seconds this year: reportedly around $4.5 million, up a stacks from last year's $4 million. You can watch the Lexus commercial in the video above, and beneath that, the BMW press release below has a bit more information on its effort. BMW to Advertise All-Electric BMW i3 during Super Bowl XLIX. The all-electric BMW i3 is featured in a 60-second spot during Super Bowl XLIX on Sunday, February 1, 2015. Woodcliff Lake, NJ – January 15, 2015... Today, BMW announced plans to feature the all-electric BMW i3 in a 60-second spot during Super Bowl XLIX on Sunday, February 1, 2015. After a 4-year hiatus, BMW will be returning to the big game with a commercial during the first quarter. "As one in three Americans will tune in to watch the Super Bowl, we are thrilled to use this platform to educate viewers on the importance of electric mobility," said Trudy Hardy, Vice President of Marketing, BMW of North America. "Big ideas like the BMW i3 take a little getting used to, and the creative idea surrounding our spot will play on this analogy." BMW i is BMW's forward-looking and sustainable brand dedicated to solving many of the mobility challenges faced by the world's most densely populated cities. The BMW i3 is the first of the BMW i vehicles constructed from the ground up primarily of carbon fiber.