2005 Nissan 350z Enthusiast on 2040-cars

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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.

St. Louis man charged in killing of Illinois college student

A St. Louis man has been arrested and charged with murder in the slaying of a 19-year-old Illinois college student who went missing while trying to sell his sports car on Craigslist, authorities said. Capt. Tim Fagan of the Florissant, Missouri, police department said at a news conference Wednesday night that 24-year-old Michael Gordon was taken into custody Tuesday and was being held at the St. Louis County jail in lieu of $1 million bond. Gordon has been charged with first-degree murder and armed criminal action in the death of Taylor Clark, a sophomore engineering student at Southern Illinois University-Edwardsville. Fagan, the deputy commander of the Major Case Squad of Greater St. Louis and lead investigator in the case, said police arrested Gordon after his name was found in emails Gordon traded with Clark about the car Clark was trying to sell. Investigators said the two did not know one another before they met. Police say Gordon is an employee of a truck driver training center in the St. Louis suburb of Hazelwood, Missouri, not far from where Clark's 2007 Nissan 350ZX and body were found Tuesday. It was not immediately clear whether Gordon has an attorney. Clark, who is from the southwestern Illinois town of St. Jacob, was reported missing by family members on Monday. Authorities say he was last seen by his girlfriend. "Our hearts and minds are with Taylor Clark's family and friends as they cope with this tragic loss," SIU-E Chancellor Julie Furst-Bowe said in a statement issued Wednesday. "At a time of the year when the new spring season brings the promise of brighter days ahead, and commencement provides unending potential for so many of our students, it is truly sad that Taylor had his bright future taken away." The Belleville (Illinois) News-Democrat reported that Clark worked at a convenience store in Troy, where a candlelight vigil was scheduled for Wednesday night. A similar vigil was held Tuesday night on campus. Clark's death comes during the same week as a Monday court hearing in St. Charles County in which a 23-year-old man was sentenced to life in prison for fatally stabbing a 45-year-old St. Louis man during an encounter and planned robbery in 2012 that was set up through a Craigslist ad. On the same day of the hearing, Fairview Heights, Illinois, police unveiled a "safe exchange zone" on its parking lot, complete with security cameras, to help citizens safely broker online transactions with strangers.

Nissan reportedly rejecting Renault proposal for closer ties

TOKYO — Nissan Motor Co Ltd will reject a management integration proposal from French partner Renault SA and will call for an equal capital relationship, the Nikkei newspaper said on Monday, citing sources. Nissan's management feels the Japanese company has not been treated as an equal of Renault under existing capital ties, and a merger would make this inequality permanent, the Nikkei reported. The outlook for the alliance — one of the world's top automaking partnerships — has been in focus since the arrest in November of its main architect, Carlos Ghosn, on charges of financial misconduct. The former Nissan and Renault chairman has denied the charges against him and has said he was the victim of a boardroom coup by Nissan executives opposed to closer ties. To which, Bloomberg reported that it has seen emails in which Nissan executives were working with Japanese government officials to defend the company's independence, as Ghosn was pushing for a full merger. The emails indicate growing concern at high levels of the Japanese government, in the months before Ghosn's arrest, that his merger efforts would boost Renault and its largest shareholder, the French government, and harm Nissan, in a relationship the Japanese already saw as lopsided. The emails indicated a desire to keep the existing structure of the alliance with a "re-balancing of the shareholding" to reduce Renault's 43 percent stake in Nissan, and stated that Nissan's independence "should be respected." Nissan declined to comment directly on the emails, while reiterating that misconduct by Ghosn and his former aide, Greg Kelly, is "the sole cause of the chain of events." Renault saved Nissan from the brink of bankruptcy two decades ago and under their current capital alliance, the French company holds greater control over its much larger partner. Nissan Chief Executive Hiroto Saikawa declined to say whether the company had received a merger proposal from Renault. "Now is not the time to think of such things," he told a group of reporters outside of his house in Tokyo. "At the moment we are focused on improving Nissan's earnings performance. Please give us time to do that." Renault declined to comment on the report. Renault has argued in its proposal that an integration would maximize synergies within the French-Japanese alliance, according to the Nikkei. The Financial Times reported last month of Renault's intention to restart merger talks with Nissan within 12 months.