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November U.S. new car sales mixed as automakers deepen discounts

DETROIT — Major automakers posted mixed U.S. November new vehicle sales on Friday and predicted a competitive December as they rushed to sell vehicles and boost their numbers before 2017 ends. Automakers are trying to sell down 2017 model-year vehicles, offering high discounts to consumers as the year-end nears. In 2016, the industry reported record annual sales of 17.55 million units. According to consultancies J.D. Power and LMC, discounts have been above 10 percent of the average transaction price for 16 of the past 17 months, a level experts say is unhealthy and unsustainable. The November sales results come as the National Automobile Dealers Association said on Friday it expects new vehicle sales to decline to 16.7 million units in 2018, after dropping to 17.1 million for the full year in 2017. If that forecast comes true, the race to move new vehicles off dealers' lots will only intensify next year. Brandon Mason, a director at PwC's automotive practice, said a worrying trend for the industry was a rising number of subprime loans. He said subprime levels are at just over 20 percent of originations, against more than 30 percent prior to the Great Recession, but recent increases remain a concern. "That's a bit of a red flag," Mason said. "It's something to keep an eye on as we move into 2018." November results by automaker: General Motors: Sales fell 2.9 percent, with sales to consumers flat against the same month in 2016. Much of the decrease was driven by lower fleet sales. GM said strong SUV and crossover sales pushed its average transaction price for the month above $37,000 for the first time. The level of unsold cars, which has been a concern for analysts and the industry, rose slightly to 83 days' supply, from 80 days at the end of October. "More vehicles are sold in December than any other month, and we are very well positioned because we have momentum in so many segments, but especially in crossovers," said Kurt McNeil, U.S. vice president of sales operations. Fiat Chrysler Automobiles: Fleet sales are low-margin, and FCA in particular has targeted a significant reduction in this type of sale in 2017. It posted a 4 percent overall decrease in sales for November, but fleet sales were down 25 percent while sales to consumers were up 2 percent on the year. Ford: The No. 2 U.S. automaker reported a 6.7 percent increase for the month, with fleet sales up nearly 26 percent and retail sales 1.3 percent higher than in November 2016.

Toyota demos its TRD Pro Series line [w/video]

With a rich history of creating off-road worthy trucks and SUVs and a somewhat bland impression of its brand overall, Toyota has wisely created a line of TRD Pro Series vehicles to spice up its showrooms and newly engage customers. Debuting at this year's Chicago Auto Show before rolling into dealers this fall, the TRD-tuned vehicles include the 4Runner, Tacoma and Tundra, all with added rough-road gear and amped-up looks.
The TRD Pro Series trucks might end up, in many cases, as lifestyle accessories for outdoorsy types, but that doesn't mean they're all show. TRD springs and Bilstein dampers are set up for off-road performance, while skid plates will protect the softish underbellies of these would-be rock-crawlers. The trio all get lifted over stock height, as well, with two-inch gains for the Tundra and Tacoma (lovingly referred to as "Taco Supreme" in the Toyota press release), and an inch-and-a-half rise for the 4Runner.
We detailed all of the changes to the Pro Series vehicles in our original announcement post, and you'll also find more granularity of information in the Toyota press release below. Before you dive in, however, be sure to take in our set of live, action-packed images from the Chicago Show floor.

Next Toyota Prius may get optional all-wheel drive

We've been hearing rumors about the next generation of the Toyota Prius for the last couple of years on a pretty regular basis. From the expectation of lithium-ion battery packs with more capacity for electric-only miles to wireless charging and more emotional styling, there's been no shortage of talking points for the car that's expected to see its first light of day at the very end of 2015 (we hope). But one thing we've yet to hear about, until now that is, is all-wheel drive. According to a report from Automotive News, Koei Saga, senior managing officer in charge of powertrain development of the Prius, said in an interview last week, "I think we will possibly do [all-wheel drive]" for the car's next generation. There isn't any further indication on how the AWD system would work, but we'd put our money on something similar, at least in principle, to the E-Four system that just debuted on the 2015 Lexus NX 300h, which uses an electric motor mounted at the rear to power the car's back wheels when the front wheels lose traction. The AN report also repeats a rumor we've heard before – that Toyota may offer two different battery pack options in its next Prius, one using lithium-ion chemistry and one using the nickel metal hydride technology that the Prius has featured from its very beginning. While the automaker has yet to talk efficiency, it's natural to expect more capacity for EV driving from newer lithium-based technology over that of nickel-based packs to go along with what we'd also expect would be a somewhat higher price. We're sure you're just as curious about the next Prius as much as we are, and so we'll leave you with these words, again from Saga: "The batteries will be renewed. Everything will be revised. And I think we will come up with a fuel economy that will surprise everyone."