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Trucks, SUVs — and Camry — shine in mixed U.S. January vehicle sales

DETROIT — Automakers posted mixed U.S. new vehicle sales data for January, with American consumers continuing to abandon passenger cars for the larger pickup trucks, SUVs and crossover models that manufacturers also love because they are far more profitable. Total industry auto sales for the month rose 1 percent versus January 2016. According to Autodata Corp, which tracks industry sales, the seasonally adjusted annualized rate (SAAR) of U.S. car and light truck sales in January fell to 17.12 million units from 17.44 million a year earlier. Analysts polled by Reuters had expected a January SAAR of 17.2 million units. U.S. auto industry sales fell 2 percent in 2017 to 17.23 million vehicles after hitting a record high in 2016 and are expected to drop further in 2018 despite a solid economy. Interest rates are rising and around 4 million late-model used cars will return to dealer lots this year to compete with more expensive new ones. Automakers have used consumer discounts to boost sales, a growing concern for observers who say this undermines resale values and profits. Discounts declined in January, but remained above 10 percent of manufacturers' recommended prices. ""I think the industry has accepted that (sales) volumes will fall somewhat in 2018 ... and I don't think the industry is going to go over the cliff with insane incentives," Mike Jackson, chief executive officer of AutoNation Inc, told Reuters after his company, the largest U.S. auto retail chain, posted a higher quarterly net profit. Mark Wakefield, head of the North American automotive practice for consultancy AlixPartners, had a gloomier perspective. The industry's less-than-stellar sales performance for January showed "we are now past the peak," he said. "Automakers are now selling the deal instead of the vehicle," he said. "That's a tough spot to be in because that treadmill is hard to get off once you're on it." General Motors January sales rose 1.3 percent, driven by a 16 percent rise in fleet sales. Sales to consumers fell 2.4 percent. GM posted strong gains for models such as the Silverado pickup truck and Equinox crossover model, while its passenger cars continued to struggle. Ford The Blue Oval posted a 6.6 percent sales decline for January, with retail sales down 4.3 percent. Sales of Ford's F-Series pickup trucks - America's best-selling vehicle brand for decades — rose 1.6 percent. Passenger cars were down more than 23 percent.

North American production of foreign marques to jump in 2014

Wards Auto has released its North American Light Vehicle Production Forecast for 2014, and the report predicts foreign manufacturers will increase production on the continent some 3.9 percent by 2014. If accurate, that should see 123,000 additional cars, trucks and vans produced in North America, swelling the total number of units produced both by domestic and foreign manufacturers to 16.9 million light vehicles from a projected 15.6 million in 2013. Much of the increase can be attributed to the fact that Toyota intends to produce another car at its Blue Springs, MS plant as well as a new Lexus model at its Georgetown, KY facility in a year's time.
Likewise, Volkswagen intends to move production of a currently imported model to its plant in Puebla, Mexico. Daimler, Honda, Nissan and Mazda also plan to build additional models on North American soil for the first time. Around two-thirds of the new North American manufacturing will take place in Mexico, helping the country soak up a full 20 percent of the content's automotive production for the first time. You can head over to the Wards Auto site for the full report.

Hello, Siri? Please don't crash the car

Hands on the wheel and eyes on the road? You could still be distracted while driving. Voice-recognition software that many automakers tout as a safer alternative to handheld devices can still divert drivers' attention, a new study published by AAA found. Researchers noted that workload ratings were the highest on their scales when participants in the study used Siri. The technology is alluring because it allows drivers to do things like change the radio station or compose a text message without removing their hands from the wheel or their gaze from the road. But many of those tasks increase a driver's cognitive workload. Depending on the situation, that can be dangerous. "It's especially problematic, because you can be distracted and not know it," J. Peter Kissinger, president of the AAA Foundation for Traffic Safety, told Autoblog. "That's the nature of mental distraction. It's hard to appreciate. ... Often, you don't know you're distracted until it's too late." There's significant variation in the results of the study. Simple, single-task car commands for operations like changing the radio station caused minimal increases in workload, about the same as listening to an audio book. Composing information using speech-to-text technology was more burdensome, and using menu-based functions caused a high level of cognitive workload. Siri-based interactions posed the highest levels of distraction, according to AAA. Researchers noted that workload ratings were the highest on their scales when participants in the study used Siri, and two of the three simulator crashes they observed during the study of 36 participants came while the subjects were interacting with Siri. The subjects weren't looking at nor making contact with their iPhones during these interactions. "Common issues involved inconsistencies in which Siri would produce different responses to seemingly identical commands," the researchers wrote. "In other circumstances, Siri required exact phrases to accomplish specific tasks and subtle deviations from that phrasing would result in a failure. ... Some participants also reported frustration with Siri's occasional sarcasm and wit." It wasn't just the complexity of the task that caused variations in level of distraction – the variations could also be dependent on the particular make and model of the car being tested.