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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 restructuring US operations, possibly moving to Texas

According to multiple sources familiar with the matter, Toyota is poised to announce Monday that it is restructuring its US operations, which may include plans to relocate some of its operations to Texas. Toyota Motor Sales has been located in California since 1957, and is responsible for North American sales, marketing, and distribution for Toyota, Lexus and Scion. According to Toyota literature, its Torrance operations presently employs 6,156 workers and represents a $2.3-billion investment.
Workers in Toyota's Torrance offices were abuzz about the possible relocation to Texas. One young offspring of a Toyota employee even posted to Twitter that her parents warned about the upcoming move, and she said she's refusing to go.
Rumors at one point had Toyota settling in Richardson, TX, just outside Plano. But Autoblog talked to Richardson Mayor Laura Maczka, who said she would be thrilled if that were true, but has not heard anything on the subject. Autoblog also emailed with Bill Sutherland, a city councilman in Torrance, CA, who said, "To date the only info I have is what I have read in the paper expecting a press release Monday."

Recharge Wrap-up: Couple wins Toyota Mirai; Tesla Gigafactory wages reported

A couple who won a Toyota Mirai at the Los Angeles Auto Show are among the first people to own the new fuel-cell sedan. Marianne Ellis bought the winning ticket - auctioned off by the Environmental Media Association to fund environmental programs - as a possible 30th anniversary gift for her husband, David. The excited couple picked up their ceremonial keys at the LA Auto Show on Wednesday. "For us, it's about being at the cutting edge of change," says Marianne Ellis. "It's a chance to support environmental causes and clean energy, while showing it's possible to make a car like this part of your lifestyle." The Mirai will go on sale in California in the fall of 2015. Read more in the press release below. The salaries for 6,500 full-time employees at Tesla's Gigafactory battery production facility have been reported. According to the Reno Gazette-Journal, the 4,550 production associates and 200 material handlers will be paid $22.79 an hour. 460 equipment technicians and 360 quality technicians will get $27.88 an hour. 930 engineers and senior staff will earn $41.83, or $87,000 a year. Tesla plans to staff 6,500 people at the Reno, Nevada-based Gigafactory by 2020. Read more at the Reno Gazette-Journal or at Teslarati. The National Biodiesel Board (NBB) has elected its governing board members. The board leaders include Sprague Operating Resources Chairman Steven J. Levy, Minnesota Soybean Processors Vice Chair Ron Marr, American Soybean Association Treasurer Mike Cunningham and Nebraska Soybean Board Secretary Greg Anderson. NBB also filled four more spots on the board, discussed federal policies, began program planning and recognized outstanding member involvement in the biodiesel industry. Read more at Biodiesel Magazine. The US Department of Energy (DOE) has reported progress on renewable and low-carbon hydrogen production. The DOE calls electrolysis, photoelectrochemical, biological and solar-thermochemical key areas of hydrogen production and has made advances in each. The DOE is looking into technological advancements in making the clean fuel and ways to reduce production costs. The DOE has also outlined various plans for the 2015 fiscal year with regard to advancing hydrogen technology, with the goal of getting hydrogen prices in line with other fuels. Read more at Green Car Congress. Toyota Mirai Winners Celebrate The Future November 19, 2014 TORRANCE, Calif. (Nov.