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Mixed sales results, but automaker stocks rise on need for cars in Houston

DETROIT — The Big Three Detroit automakers on Friday reported better-than-expected August sales and issued optimistic outlooks for demand as residents of the Houston area replace flood-damaged cars and trucks after Hurricane Harvey, sending their stocks higher. General Motors, Ford and Fiat Chrysler posted mixed August U.S. sales, with GM up 7.5 percent and Ford and Fiat Chrysler down. Japanese automaker Toyota improved sales by nearly 7 percent, while Honda fell 2.4 percent. Still, analysts focused on the potential for Detroit automakers to cut inventories and stabilize used vehicle prices as residents of Houston, the fourth largest city in the United States, are forced to replace tens of thousands, perhaps hundreds of thousands, of vehicles after the devastation from Hurricane Harvey. Mark LaNeve, Ford's U.S. sales chief, told analysts on Friday that following Hurricane Katrina in 2005 "we saw a very dramatic snapback" in demand. That said, Ford sales fell 2.1 percent in August. It sold 209,897 vehicles in the United States, compared with 214,482 a year earlier. Sales were down 1.9 percent in the Ford division and off 5.8 percent at Lincoln. Demand was down for cars, crossovers and SUVs. It was not clear how many vehicles in the Houston area will be scrapped, LaNeve said, saying he had seen estimates ranging from 200,000 to 400,000 to 1 million. Ford's Houston dealers may have lost fewer than 5,000 vehicles in inventory, he said. Ford is the No. 1 automaker in the Houston market, with 18 percent share, according to IHS Markit. The company plans to ship used vehicles to Houston dealers and has "every indication we would have to add some production" of new vehicles to meet demand, LaNeve said. Investor concerns about inventories of unsold vehicles and falling used car prices have weighed on Detroit automakers' shares most of this year. Now, automakers can anticipate a jolt of demand from a big market that is a stronghold for Detroit brand trucks and SUVs. "It's got to be a positive for the industry," LaNeve said. Investors appeared to agree. GM shares rose as much as 3.3 percent to their highest since early March. Ford increased 2.8 percent at $11.34, and Fiat Chrysler's U.S.-traded shares were up 5.2 percent $15.91, hitting their highest in more than five years. GM reported a 7.5 percent increase in U.S. auto sales in August, helped by robust sales of crossovers across its four brands.

Ford rethinking vehicle launch strategy

With a new boss at the helm, Ford is looking at new ways to improve its vehicle launches in North America to prevent recent issues that have popped up with models like the Lincoln MKZ, Ford Escape and Ford Fusion. Speaking with Automotive News, Ford's new president of the Americas, Joe Hinrichs, revealed a few ways the automaker plans to avoid early build issues such as the engine fires on certain 2013 Escape and Fusion models and months-long delays for customers to receive their MKZs.
It sounds like the root of the problems may have been Ford's relationship with suppliers compounded by the fact that the product surge came on the heels of the recent industry-crippling recession, and in the AN article, Hinrichs says improvements are being made to reduce problems during the launch of new or redesigned models. Three such improvements that were implemented during the first quarter of this year including more rigorous quality comparisons, better use of computer technology to catch major problems sooner and hiring engineers to work closer with suppliers.

2015 Lincoln Navigator

Typically, when I approach a new vehicle launch, it's with a degree of optimism. Nowadays, we just expect that every new vehicle will pose a legitimate challenge to segment leaders. Mid-cycle refreshes, meanwhile, have taken on a greater degree of importance, as customers' preferences for the freshest vehicles remains strong and automakers rush to keep the latest tech in their offerings.
Conversely, I admit to not being terribly optimistic hopping into the 2015 Lincoln Navigator. I was the first person from Autoblog to see the new model in the metal, way back in January ahead of its Chicago Auto Show debut, and my initial reaction was far from positive. But, as I'd been the one that initially tested the new Cadillac Escalade and had just finished a week in the long-wheelbase version of General Motors' most premium SUV, I was a natural candidate to head down to Louisville, KY - home of Navigator production - to sample the brand's latest.
Lincoln's attempt at freshening the old Navigator's bling-bling face is pretty typical of today's more thorough mid-cycle refreshes, with dramatically new front and rear clips. The addition of standard 20-inch wheels or optional 22s - in place of standard 18s and optional 20s - goes a long way towards modernizing the Navigator's staid exterior. The cabin, meanwhile, is home to finer leather, which covers most of the dash as well as the steering wheel and seats. Warm Ziricote wood would prove to be a particular highlight on the top-flight Reserve model that I drove (the only trim available for us to test).