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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.

2015 Lexus GS F is camo-free and frisky

Other than some missing badges and (hopefully) a not-yet-finished rear fascia, what you see here is an undisguised look at the long-awaited Lexus GS F high-performance sedan. Lexus' answer to the BMW M5 and Mercedes-Benz E63 AMG, the GS F has been spotted again.
Unlike our previous spy shots, though, this time around, the sporty Lexus has been caught testing on the Nürburgring, so our spy shooters have managed to get a look at the car from all angles. Building on the aggressive styling of the GS F-Sport, the GS F gets bigger air intakes and a lower chin spoiler up front. Like before, we see the signature stacked exhaust outlets, but they still seemed roughed into rear fascia, which gets an aero-aiding diffuser.
We still only have guesses as to what will be under the hood, but a 465-horsepower, 5.0-liter V8 sounds good to us. Expect to see the production GS F on the road by 2015.

Lexus GS F points its gaping grille at the BMW M5

A mere trio of weeks after the latest report in the slow-moving Lexus GS F rumor cycle, we have a brand new batch of spy photos of the BMW M5-fighting sedan. Looking more and more production ready - notice the more finished exhausts compared to our last round of photos - the GS F can be seen poking around what we imagine is Germany.
If the RC and RC F Coupes are any indication, it looks like Lexus will start fitting its high-performance models with a new, single-frame version of the spindle grille while a dual-frame grille will be reserved for lesser trims. Backing up that suspicion is the new single-frame grille found on this prototype, marking the first time the suspected F line styling piece has been seen on a GS F prototype.
The aforementioned staggered quad exhausts look good on the GS' rear end, while a none-too-subtle rear spoiler ups the rear's visual flair. The low-profile rubber and the multi-spoke, black wheels are nice touches that work well with the front fascia features, in addition to the new, camo'd grille and substantial brake cooling ducts.