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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 previews its next design language with an electric concept

Identifying a new or a late-model Lexus is child's play: Look for the giant spindle-shaped grille. It's a styling cue that defines all of its recent models, and designing an electric car is evidently not an excuse to get rid of it. Lexus published a dark teaser image that previews an electric concept that will usher in its next design language. Like parent company Toyota, Lexus has long resisted the shift towards electric cars by fervently arguing hybrids make more sense. But, as even its home country mulls a blanket ban on internal combustion technology, it's left with no choice but to go electric. It already sells a battery-powered variant of the UX in Europe, but the concept it previewed on its social channels was designed as an electric car from the get-go. It's still shrouded in secrecy, we don't even know its name yet, but we can already tell the spindle stays. Its outline clearly appears between the sharp LED headlights, though it almost looks full. And, like seemingly every concept car released in the past three or four years, the newest member of the Lexus portfolio wears a backlit emblem. Lexus electric prototype View 4 Photos Interestingly, Lexus also quietly published a separate video highlighting the electric and hybrid technologies it's developing for the 2020s, and the footage reveals a heavily-camouflaged crossover lapping a test track in Japan. Shown in the gallery above, it's fully electric, and it might be at least related to the upcoming concept. Direct4 technology will power the car. Short for Direct 4-Wheel Drive Force Control, it's a system that automatically adjusts the torque sent to each wheel based on the road and driving conditions. In this application, it consists of two electric motors (one per axle), and its total output checks in at 402 horsepower and 442 pound-feet of torque. Lexus noted it can be used for gasoline-electric plug-in hybrid systems, too. We'll need to be patient to find out more about the concept. For example, we don't know if it's related to the electric car that Toyota will release in Europe in 2021, or if it's something else entirely. If the concept and the prototype shown testing in Japan are indeed the same car, it looks like its launch is right around the corner. Related video:

Lexus previews the concept car that illustrates its new brand vision

Lexus will start writing the next chapter in its 32-year history when it unveils a mysterious concept car in spring 2021. It hasn't revealed the design study's name yet, but it explained the model will show what's coming. Koji Sato, the company's president and chief branding officer, noted that the concept "illustrates our intentions for the future, and marks the beginning of the next generation of Lexus." He stopped short of providing additional details, but the company's plans for the future are fairly easy to decipher. Lexus isn't going to start making rifles, lawn mowers, or garage flooring; it's very likely going to electrify its range while reinventing its design language for the 2020s and adding more technology — including advanced semi-automated systems — to its cars. The dark preview image released by Lexus shows the concept car's rear end. We see a relatively low roof accented by a fin, a sculpted rear bumper that's much wider than the greenhouse, and the company's name written in a new font. While the photo asks more questions than it answers, we know that we're not looking at the electric crossover that the Toyota-owned company hinted at in December 2020 because the proportions don't match. And, we highly doubt it's the rugged, body-on-frame off-roader that's allegedly also in the works. We'll have to be patient to find out whether Lexus is planning to move away from the spindle-shaped grille that has characterized its cars for nearly a decade. Geneva's annual auto show was canceled for the second year in a row, but it should have opened its doors to the public and the press in early March 2021. Odds are the Lexus concept's online unveiling will coincide with (or at least fall very close to) the axed show's dates. Sato confirmed that Lexus will release a new car in 2021, though he didn't specify if it's related to the concept, or if it's merely inspired by it. He pledged to continue rolling out new additions to the range through 2022. Related video: