1968 Volkswagen Notchback on 2040-cars

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Mixed sales results, but automaker stocks rise on need for cars in Houston

DETROIT — The Big Three Detroit automakers on Friday reported better-than-expected August sales and issued optimistic outlooks for demand as residents of the Houston area replace flood-damaged cars and trucks after Hurricane Harvey, sending their stocks higher. General Motors, Ford and Fiat Chrysler posted mixed August U.S. sales, with GM up 7.5 percent and Ford and Fiat Chrysler down. Japanese automaker Toyota improved sales by nearly 7 percent, while Honda fell 2.4 percent. Still, analysts focused on the potential for Detroit automakers to cut inventories and stabilize used vehicle prices as residents of Houston, the fourth largest city in the United States, are forced to replace tens of thousands, perhaps hundreds of thousands, of vehicles after the devastation from Hurricane Harvey. Mark LaNeve, Ford's U.S. sales chief, told analysts on Friday that following Hurricane Katrina in 2005 "we saw a very dramatic snapback" in demand. That said, Ford sales fell 2.1 percent in August. It sold 209,897 vehicles in the United States, compared with 214,482 a year earlier. Sales were down 1.9 percent in the Ford division and off 5.8 percent at Lincoln. Demand was down for cars, crossovers and SUVs. It was not clear how many vehicles in the Houston area will be scrapped, LaNeve said, saying he had seen estimates ranging from 200,000 to 400,000 to 1 million. Ford's Houston dealers may have lost fewer than 5,000 vehicles in inventory, he said. Ford is the No. 1 automaker in the Houston market, with 18 percent share, according to IHS Markit. The company plans to ship used vehicles to Houston dealers and has "every indication we would have to add some production" of new vehicles to meet demand, LaNeve said. Investor concerns about inventories of unsold vehicles and falling used car prices have weighed on Detroit automakers' shares most of this year. Now, automakers can anticipate a jolt of demand from a big market that is a stronghold for Detroit brand trucks and SUVs. "It's got to be a positive for the industry," LaNeve said. Investors appeared to agree. GM shares rose as much as 3.3 percent to their highest since early March. Ford increased 2.8 percent at $11.34, and Fiat Chrysler's U.S.-traded shares were up 5.2 percent $15.91, hitting their highest in more than five years. GM reported a 7.5 percent increase in U.S. auto sales in August, helped by robust sales of crossovers across its four brands.

Volkswagen throws a Polo-palooza with four new or upgraded models

Volkswagen unveiled a parade of new and upgraded Polo models at the 2014 Geneva Motor Show, including the Polo TSI BlueMotion, Polo TDI BlueMotion, Polo BlueGT and CrossPolo (pictured above). While they will likely never make an appearance this side of the pond, it is fun to see what European subcompact drivers will be driving later this year.
The new BlueMotion models represent the most efficient petrol and diesel options in their class, according to VW. The BlueMotion TDI offers just 73 horsepower from its diesel engine but gives the equivalent of 76 miles per gallon (US) in the EU test. The BlueMotion TSI brings a little more power with its 88-hp petrol engine and has a combined rating of 57 mpg (US) in the EU cycle.
The Polo BlueGT provides a balance of performance and economy, and for the 2014 model, it gains a 9-horsepower boost to its 1.4-liter turbocharged to give drivers 147 hp at the press of the accelerator. This year's car also has an optional Sport Select suspension with electronically controlled dampers to improve handling a bit. It's still fitted with active cylinder management to use as little gas as possible when cruising.

VW uses NorCal Forest to make e-Golf carbon neutral

On the one hand, it's just a forest. There are beautiful redwood trees and clean air, cool, quiet creeks and hidden wildlife. You know, a forest. The kind that have existed for millions of years. On the other, it's a carefully managed collection of natural resources that lets companies pay money to make their products more beneficial to the environment. Welcome to the Garcia River Forest. For our purposes, the Garcia River Forest is interesting because of its connection to Volkswagen. Its young redwoods are helping Volkswagen create something almost unheard of in the automotive industry: a (mostly) carbon-neutral car. The 10,000-foot overview of how this works is as follows: when you buy the electric car, part of your money goes to support three carbon offset projects. These projects (the one in the Garcia River Forest, the Big River And Salmon Creek Forests in California, and the McKinney Landfill in Texas) have put a price on the value of not letting more carbon get into our atmosphere. The calculations come in the form of credits per metric ton of CO2 and VW has paid enough money to cover the emissions it generates during the production and distribution of the e-Golf as well as the charging for around 36,000 miles of driving. VW worked with 3Degrees, a provider of carbon offset services, to calculate the amount of greenhouse gas (GHG) emissions that each e-Golf will be responsible for, from the factory to the driveway. The Garcia River Forest location is managed by The Conservation Fund (TCF). VW originally announced the carbon-neutral program back when it revealed US details for the e-Golf, in August 2013. Stuart Gardner, project manager at VW of America for the Golf family, told AutoblogGreen that the idea for the carbon offset came from the way VW understands plug-in vehicle buyers. "At Volkswagen, we strive to be leaders in e-mobility and developing alternative powertrains and we realize that, when someone buys an electric vehicle - the e-Golf, for example - they are doing more than just buying an electric vehicle," he said. "They are buying a lifestyle and they want to engage in this lifestyle." VW is not releasing the specific amount of the purchase price of each e-Golf that is directed to the Garcia River Forest (or any other carbon offset projects).