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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.

Recharge Wrap-up: Audi to build Q6 e-tron in Brussels, Boris Johnson test drives Toyota Mirai

Audi will build the Q6 e-tron at its factory in Brussels, Belgium. Production for the electric vehicle - which will be based on the concept car from the Frankfurt Motor Show in September - is slated for 2018. Its expected driving range of about 311 miles should help make it competitive against the Tesla Model X. Audi's Brussels plant is also where the A1 is made. It employs about 2,500 workers and produced about 115,000 vehicles in 2014. Read more from Automotive News Europe. During a visit to Toyota Headquarters, London Mayor Boris Johnson confirmed that Transport for London will be the UK's first Toyota Mirai customer. Mayor Johnson traveled to Japan on a three-day trade mission, and took a test drive of the fuel cell vehicle. "By embracing this technology of the future, we aim to consolidate hydrogen's role as a practical alternative fuel for the 21st century and beyond," says Johnson. "I am sure that Transport for London will provide the ideal environment for us to see everything Mirai can do and, in doing so, take another great step towards improving air quality in our city and protecting the health of Londoners." Read more from Toyota, or at Green Car Congress. The South Coast Air Quality Management District (SCAQMD) has delivered 12 electric commercial lawn mowers to government and nonprofit organizations in San Bernardino County. The donation of the electric mowers is part of a demonstration program to promote zero-emissions equipment. At prices ranging from $3,000 to $20,000, the electric mowers cost about 25 percent more than their gas-powered counterparts, but their lower operating costs can make up for the price difference in about two years. In addition, they produce about half the noise, and save about 600 pounds of harmful emissions per year. SCAQMD plans to deliver five more of the mowers as part of the same program. Read more in the press release below. SCAQMD Launches Nation's Largest Zero-Emission Commercial Lawn Mower Demonstration Program in San Bernardino SAN BERNARDINO, Calif., Oct. 13, 2015 /PRNewswire-USNewswire/ -- The South Coast Air Quality Management District today delivered a dozen new, battery-electric commercial lawn mowers to agencies in San Bernardino County as part of a long-term demonstration program to promote the zero-emission equipment.

Toyota says freezing temps pose zero problems for fuel cell vehicles

Hydrogen-powered fuel cell electric vehicles are not afraid of one thing – freezing cold weather. That's the latest from two companies that have been driving the cars in frostbite temperatures in the Northeast recently. Proton Onsite runs a fleet of 10 Toyota FCHV-adv fuel cell vehicles out of its Connecticut headquarters and discovered that the snow and three-degree temperature didn't restrict range. Mark Schiller, Proton vice president of business development, said in a statement that, "I went out to my Toyota FCHV-adv and brushed off a foot of snow before starting the car right up. No problem." While electric vehicles can have their driving range reduced in extreme temperatures (but not always), Proton Onsite hasn't seen that happen in the Polar Vortex. They're performing flawlessly in freezing temperatures even with the heaters blasting, and are continuing to hit their range of about 300 miles, Schiller said. Air Products, based on Allentown, PA, has had a similar experience. The FCHV-adv has had great performance under harsh conditions, according to Nick Mittica, commercial manager, hydrogen energy systems. Employees drove the fuel cell vehicle during one of Pennsylvania's worst winters in recent memory and, you guessed it, "No problem." Toyota says that has put its fuel cell fleet through the wringer, logging millions of miles over the last decade, to make sure performance can be delivered within extreme weather conditions. Toyota engineers spent weeks testing cold weather start up, performance and durability up in Yellowknife, Canada. Temperature can reach -30 degrees Celsius (-22 degrees Fahrenheit) at that location. On other end of the scale, Toyota was able to verify that its FCVs can handle driving through heat in Death Valley national park. We heard the same from Mercedes the other day, too. Extreme weather functionality is apparently something automakers want to make absolutely sure the public doesn't worry about. Jan. 30, 2014 – Record low temperatures have stranded many East Coast drivers, but not those driving a Toyota fuel cell hybrid vehicle. Connecticut-based Proton Onsite, which operates a fleet of ten Toyota FCHV-adv fuel cell vehicles, says that even in single digit temperatures, the FCHV-adv shows no signs of frostbite. "We had another snow storm Tuesday night and this morning the temperature was 3 degrees," says Mark Schiller, Proton vice president of business development.