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U.S. auto sales fall in July, as Detroit dials back on inventory, rental sales
Tue, Aug 1 2017DETROIT — U.S. carmakers said on Tuesday they continued to slash low-margin sales to daily rental fleets in July as General Motors, Ford and Fiat Chrysler Automobiles struggled to curb a slide in retail sales. July is on track to be the fifth straight month in which the annual pace of car and light truck sales declined from the same month a year ago, in part because of fewer fleet sales, analysts and industry executives said. July 2016 sales hit a strong 17.9-million-vehicle pace. GM said the seasonally adjusted annual sales rate fell to an estimated 16.9 million vehicles in July. At midmorning on Tuesday, GM shares were down 3.4 percent at $34.77, Ford was down 2.8 percent at $10.91, and Fiat Chrysler shares were down 0.3 percent at $12.05 in New York. GM sales dropped 15 percent from a year ago to 226,107 vehicles, as the company cut rental fleet sales more than 80 percent. The automaker said inventories of unsold vehicles at month's end were 104 days, down from 105 days at the end of June. GM has promised investors to reduce inventories to 70 days by year-end. Ford said its July sales dipped 7.5 percent to 200,212 vehicles, as it cut fleet sales more than 26 percent. Inventories fell to 77 days from 79 the previous month. Fiat Chrysler said sales dropped 10 percent to 161,477, as it also cut back sales to daily rental fleets. Among the top Japanese companies, only Toyota reported a year-to-year gain, with sales up 4 percent to 222,057 — just 4,000 units behind GM. Honda sales were down 1 percent to 150,980 — its first-quarter sales continuing to decline in North America but seeing a big increase in China. And Nissan sales fell 3 percent to 128,295. GM, Ford and Fiat Chrysler have cautioned that second-half financial results likely will be lower than first-half results, in part reflecting production cuts in North America and pricing pressures. The automakers this year have been deliberately dialing back sales to rental-car companies, which often generate little to no profit, while struggling to keep retail sales from sagging further, according to industry analysts. Industry consultant LMC cut its full-year forecast for new vehicle sales to 17 million vehicles. Automakers sold a record 17.55 million vehicles in the United States in 2016.
Toyota Yaris iA, Mazda CX-3 sales show crossover formula isn't an automatic win
Thu, Jan 4 2018While 2017 was another watershed year for crossovers, in one interesting case, a crossover had its lunch eaten by its sedan counterpart. In the past year, Toyota sold nearly 36,000 Yaris iAs, a sedan that is identical to the foreign-market Mazda2 in everything but Toyota's ugly front bumper. In the same time frame, Mazda sold just over 16,000 CX-3s, a subcompact crossover based on the Mazda2. Not only that, but the Yaris iA saw an increase of around 8,000 units over 2016, and the CX-3 sold about 2,000 fewer units than in 2016. View 29 Photos There are a few reasons this is surprising. First of course is that the crossover market is surface-of-the-sun hot right now, so much so that primarily crossover-building brand Subaru saw its best sales year ever last year. Even Mazda's other crossovers, the CX-5 and CX-9 saw better sales in 2017 than in 2016. But on paper, the CX-3 has a number of advantages compared to the Yaris iA. The CX-3 has a larger 2.0-liter four-cylinder that makes about 40 more horsepower than the 1.5-liter engine in the Toyota. Also, while the cargo area behind the rear seats in the CX-3 is about one cubic foot smaller than the iA, it has the added flexibility of being a hatchback, and thus having more capability when it comes to large, bulky items. And of course, the CX-3 is quite a shapely machine compared with the awkward, angry-looking iA. That's not to say the iA doesn't have any of its own advantages. It gets 3 more mpg in the city and 6 more on the highway than the CX-3. It also costs roughly $3,000 to $4,000 less than a CX-3 and can be found at more dealers than the Mazda. But it's still surprising that a car, especially a sedan, can outsell a mechanically very similar crossover. Apparently the formula of adding more ground clearance and plastic fenders isn't foolproof. Then again, maybe it's not such a big deal to Mazda, since the CX-3's total sales were just over a tenth that of the Mazda CX-5. Related Video:
Scion testing updated FR-S
Thu, Sep 17 2015It looks like Toyota is preparing a mid-cycle update for its critically acclaimed GT86, known here in the US as the Scion FR-S or Subaru BRZ. As far as updates go, this one looks to be rather average. Hidden behind the camouflaged front and rear ends, we have new headlights and taillights, which according to our spies looked to be of the LED variety. We wouldn't be shocked to see the GT86 get LED taillights, although fitting the top-of-the-line headlights seems less likely. Supporting that position are the images we have of the actual headlights in action, which don't look quite bright enough to be full LED units. Instead, we'd expect some new form of running light, perhaps with bi-xenon low beams. Aside from the lamps, the front bumper gets a larger, more prominent lower intake, while the rear end sports a redefined bumper that houses larger dual exhaust tips. The size of the spoiler has been increased, too. According to our spies, we should also expect powertrain enhancements – which we can only hope means more power – as well as upgrades to the interior of the GT86. While it's possible that the updates being tested in Germany could be exclusive to the European market, that seems unlikely. We'd expect the same new enhancements to at least find their way to the Scion, if not its Subaru-badged twin. Check out the full battery of spy photos up top. Related Video: