2013 Toyota Rav-4 Le.no Reserve.4x4/awd/camera/cruise/cd/abs/salvage/rebuilt 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.

Toyota recalling 800k Camry, Avalon and Venza models for AC issue

Toyota has announced plans to voluntarily recall 803,000 vehicles from model years 2012 and 2013, over concerns with the air conditioning condenser housing. The recall covers the Camry, Camry Hybrid, Avalon, Avalon Hybrid and Venza, although the exact split between affected models wasn't available.
According to Toyota, the condenser can leak onto an airbag control module, which in turn could cause a short circuit. In most cases, this will just lead to an airbag warning light, but in rarer instances, the airbags could fail to deploy or pop out of their own accord. There's also a concern over a loss of power steering if the airbag control module develops a short.
It's unclear if there have been any injuries or crashes relating to the defects. Toyota will begin informing owners of affected vehicles via first class mail, and will ask them to report to dealerships for recall work, involving the installation of a cover on the condenser housing.

2014 Toyota Aygo marks the spot [w/video]

Following the leaked pictures we showed you yesterday, we have the full battery of images and info of the all-new Toyota Aygo, in addition to our gallery of live photos from the floor of the Geneva Motor Show.
Like its cousins from Peugeot and Citroën, the Aygo foregoes a diesel engine in favor of a highly efficient gas powerplant. The 1.0-liter naturally aspirated 4-cylinder turns out 68 horsepower and 70 pound-feet of torque. When it hits the market, it'll be with either a five-speed manual transmission or a five-speed, X-Shift automated manual. The former will help the Aygo return 57.3 miles per gallon and hit 62 miles per hour in 14.2 seconds. Opting for the X-Shift variant will net drivers 56 mpg, with 62 arriving in a leisurely 15.5 seconds.
We'll admit, aside from the fuel efficiency, there's nothing terribly great about those numbers. Still, with its compact dimensions - it's only 136 inches long - and a curb weight of no more than 2,000 pounds, it should prove tossable in the bends.