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May 2016: FCA wins, Ford and GM stumble on weak car volumes

The May 2016 sales numbers are in, and it looks as though FCA is getting some vindication for boldly cancelling two slow-selling car models. Meanwhile, Ford saw overall sales dip and GM's May volume took a big dive versus the same month in 2015. While Marchionne's decision to axe the Chrysler 200 and Dodge Dart has drawn criticism as being short-sighted, it's working for FCA so far. Although the Dart and 200 aren't out of production yet and no capacity has been shifted to crossover or trucks, May's numbers show that the emphasis on Jeep and Ram models makes sense right now. FCA's US sales rose 1 percent last month compared to May 2015, putting the year-to-date total at 955,186 vehicles, an increase of 6 percent compared to the same period last year. Standouts included the Jeep Renegade, Compass, and Patriot, and the Fiat 500X. Ram pickup sales were down 3 percent. And your fun fact is that Alfa Romeo sales were up precisely 10 percent, for a total of 44 4Cs sold versus 40 in the same month last year. At FoMoCo, the Ford brand took a hit to the tune of 6.4 percent from May 2015 to 2016, registering 226,190 sales last month. Lincoln showed improvement on its modest numbers, going from 9,174 to 9,807, a 6.9 percent increase. Overall, Ford was down 5.9 percent for the month to 235,997; despite the slump, year-to-date total Ford sales are up 4.2 percent to 1,112,939. Strong sellers included Escape, Expedition, F-Series, and Transit - big stuff. Most small and/or efficient models (Fiesta, Focus, Fusion, C-Max) saw sales slides. Fusion sales were also down, likely due to effects of model changeover to the freshened 2017 model. Ford has promised four new crossovers and SUVs by 2020 and if things keep trending this way the company will be able to sell them, but things could change in the next four years. GM saw the worst of it for domestic brands. Retail and fleet sales were down for each of the four divisions, with the May 2016 total dropping 18 percent to 240,450 vehicles. GM's year-to-date sales are down 5.0 percent in 2016 to 1,183,705. Both the Sierra and Silverado were down significantly, and the majority of Chevy, Buick, GMC, and Cadillac nameplates saw sales decreases, with both small cars and larger utilities included. Not even big stuff could help GM this month, it seems. We'll have more on the rest of the industry's May sales as those figures trickle in.

2015-2019 Lincoln MKC recalled over fire risk in engine bay

Ford has commenced a recall of 142,734 examples of the Lincoln MKC from the 2015 to the 2019 model years. The potential issue centers on the battery monitor sensor in the compact luxury crossover. After reports of 19 fires in MKCs in the U.S., Canada and China, Ford's internal investigation found that the monitor sensor housing could be damaged when technicians worked in that area of the engine bay. If the housing damage caused the sensor to short circuit, the short could lead to an electrical load in the sensor's power circuit that causes enough heat to set fire to surrounding material. That could lead to a fire in the engine bay at any time, while driving or even when the MKC is turned off. The Lincolns were built from August 20, 2013 to August 2, 2019. The automaker says it isn't aware of any injuries or accidents due to this; all of the models that caught fire were parked and off at the time. Because of the risk of fire at any time, Ford is recommending that owners park outside and away from structures until owners have had the issue repaired. The fix is a trip to the dealer to have a fuse added to the battery monitor sensor power circuit that can kill the current in the event of a short. Ford will begin sending letters to MKC owners on June 26. In the meantime, owners are free to contact Ford customer service at 866-436-7332 to find out more about the recall or if their MKC is affected, or they can get in touch with their local Ford or Lincoln dealer. The company's internal number for this recall is 23S28. Owners can also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 888-327-4236 (TTY 800-424-9153), or go to www.nhtsa.gov, and refer to campaign number 23V378. Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Lincoln poised to double MKZ Hybrid production

The Lincoln MKZ Hybrid has been something of a hit for Ford since the beginning, exceeding the company's modest projected 15-percent take rate for more than two years (we say "modest" because that still means an overwhelming majority of Lincoln customers are passing up on the gas-electric powertrain even though it costs the same as the standard model). Either way, Lincoln builds 700 MKZ Hybrids at its plant in Mexico each month, but has sold 715 of them in each of the past three months. That's why, according to a report in The Detroit News, when the restyled 2014 MKZ Hybrid arrives (non-hybrid pictured), Ford is doubling production compared to 2013. Instead of the hybrid model being 20 percent of production, the new hybrid will make up 40 percent.
Ford is doing well with hybrids in general - its portion of the electrified vehicle segment jumping 12 points in a single year to 16 percent. Assuming Ford doesn't change the pricing strategy (along with the changes Ford is making to calibration to improve fuel economy), the sedan could continue to "[show] other luxury hybrids how it's done" when it goes on sale later this year.