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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.

2019 Mazda CX-3 small crossover will start at $21,365

The figures are in for the 2019 Mazda CX-3 subcompact crossover, which will start at $21,365 when it arrives in showrooms later this month. That's $280 above the outgoing model, including a $975 destination and handling fee. Fuel economy figures are also now in from the EPA. When equipped with front-wheel drive, the 2019 CX-3 gets 29 miles per gallon in the city and 34 on the highway for a combined 31 mpg. The all-wheel-drive version is rated at 27 mpg in the city, 32 on the highway and 29 combined. Which are ... exactly the same figures as the outgoing version (so much for the promised fuel economy improvements). We detailed most of what's new about the 2019 version back in March at the New York Auto Show. Mostly, they're non-cosmetic changes: The carryover 2.0-liter Skyactiv four-cylinder picks up a couple more horsepower and pound-feet of torque for 148 total horsepower and 146 pound-feet of torque, joining a six-speed automatic transmission with manual-shift and sport modes. It also gets Mazda's G-Vectoring Control driving technology, a sportier, retuned suspension and improvements to make the driving experience quieter and more refined. Mazda says it's also added an electronic parking brake, which necessitated a redesign of the center console and armrest, adding storage space, and it redesigned the front seats and added a new rear armrest with built-in cupholders. Standard features include a new direct tire-pressure monitoring system and blind-spot monitoring with rear cross-traffic alert, two USB ports, a rearview camera, hands-free Bluetooth calling and audio pairing capability, and the 7-inch Mazda Connect full-color infotainment and diagnostic display, controllable via voice command or control knob. The new Sport i-ACTIVSENSE Package of safety technologies is available for an extra $1,100. It adds features including smart city braking support with pedestrian detection, lane departure warning, radar cruise control with stop-and-go function, LED headlights and LED combination tail lights. Other trim levels include Touring, which adds 18-inch wheels and keyless entry, and the top-level Grand Touring, which starts at $26,720 and $28,120 for front- and all-wheel-drive configurations, respectively. Grand Touring includes the Sport i-ACTIVSENSE Package, plus Parchment or black full-leather seating with high-gloss pleated piping and chrome accents on the front bumper and side sills, among other features.

Mazda's rotary engine may live on as a range extender (UPDATE)

Update: We received a response from Mazda that confirmed plans for a 2019 electric car available in battery-only and range-extended models, but there was no comment on any other details. The text has been updated to reflect this. It may be time for rotary fans to start getting their hopes up a little for a return of the spinning triangle engine. Automotive News spoke with Mitsuo Hitomi, the man in charge of Mazda powertrains, who said there's a very good chance the next implementation of the rotary engine will be as an electric car range extender. The news source also suggests that such a vehicle could be just around the corner, since Akira Kyomen, Mazda's vehicle development program manager, confirmed to Automotive News that the company will have an EV out in 2019 in both pure electric and range-extended versions. We reached out to Mazda for more information, and a representative confirmed both the pure electric and range-extended models for 2019, but couldn't comment on anything else regarding those vehicles. Looking back, we have reason to believe that this really might happen. As far back as 2013, Mazda was working on a rotary-engine range-extended electric car in the form of the Mazda2 RE Range Extender. It had a total range of 250 miles, half of which came from its battery, the other half from a 330 cc rotary engine generator fueled by a 2.6-gallon gas tank. More recently, Mazda has also teased rotary power with the RX-Vision concept at the 2015 Tokyo Motor Show and another rumored rotary concept at this year's show, which could be the design concept teased recently. But most convincing is the patent we found from Mazda that described a range-extended electric car that would specifically use a rotary engine. The powertrain layout looks just like the one used in that Mazda2 concept. There's also the fact that, as we've previously pointed out, and as Hitomi mentioned to Automotive News, the rotary could be a good range-extender due to its compact size and smoothness. Of course it also isn't known for being the most efficient engine, but if it isn't required to provide all the forward propulsion, it could be made small enough that it's frugal, and the added space and weight savings would be important for making the vehicle more practical, adding more batteries, or simply keeping the car lighter. This news might not excite rotary die-hards who have been waiting for an RX-7 and RX-8 successor, but they shouldn't quite abandon hope yet.