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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.

2016 Audi A6 First Drive [w/video]

The Audi A6 could be seen as a singular kind of sleeper. It sells in volumes that are one-half to one-third those of its German competition. The sedan doesn't command a conversation much less the imagination, its history bereft of iconic brand identifiers. Think of the way the E28 BMW 5 Series turned the segment into something to be proud of, or those double headlamps from the W210 Mercedes-Benz E-Class, or that other E from 1986 simply known as Der Hammer. There is currently no RS6 sedan in the US to draw halo attention to the clan. And it was the first in its segment to slip into a design lassitude such that you had to check the badge to make sure it wasn't a different Audi. However, I look at the A6 from the other side: it's an underappreciated gem. With the 3.0-liter supercharged V6, it's a thoroughly fun steer. It has more power and torque than the competition. I think it has the finest interior. It's probably my favorite sedan in the segment considering how many boxes it checks before you cross the bridge to things that begin with S, M, and AMG. But you have to get to know an Audi in order to comprehend what it possesses, and the "product improvement" rolled out for the 2016 A6 won't change that. I'll call these "blind spot updates," because someone needs to point out where they are, and even then you've got to work to see them. Nevertheless, they're there, in places like the wider grille, new headlights and taillights with revised LED DRL signatures, new bumpers, side sills, rockers, and trapezoidal tailpipe finishers. The interior and driver assistance systems get gussied-up. The interior and driver assistance systems get gussied-up, too. The base A6 2.0T can be had with driver aids now – Audi pre-sense comes standard, the night vision assistant will identify animals, and the blind spot monitor works with lane keep assist to give you even more warning before changing lanes. There are two new colors and new inlays, like the layered walnut on the tester I drove, which is an upper-tier luxury feature that's finally filtered downstream. The biggest interior rework comes via the MMI system, which gets the Nvidia Tegra 3 quadcore chip pushing graphics to a retractable, eight-inch touchscreen. The additional processing power allows for new features like expanded codec playback – you can now play uncompressed .flac files straight through the stereo.

2017 Audi R8 First Drive

You might think the new Audi R8 is a Lamborghini in a business suit. You'd be wrong; the Huracan is an R8 in a Heinlein shock trooper suit. This is the most raucous, rowdy Audi yet, and it's most certainly a supercar – even when parked next to its bawdier Italian cousin. Although the Huracan has been on the street for nearly a year now, the new R8 and the Lambo were developed in parallel. Audi handled most of the engineering workload, with the Huracan receiving Lamborghini's styling and tuning finesse on top of its Audi-built V10 engine and seven-speed dual-clutch transmission. The R8 gets Audi's motorsports-inspired best. Tally it all up and you have two very different cars built from very similar components. Of course, that could also be said of the R8 and its racing doppelganger, the R8 LMS, the racecar built for WEC endurance racing. That car, in fact, is more closely related to the R8 than is the road-going Huracan – the wheelbases are the same, 50 percent of the parts are shared, and the bodies-in-white are built on the same line. The racecars are pulled off line for occasional tweaks or additions, then slotted back in to run through most of the same workflow as the R8s that will eventually end up on the streets. Like a new pair of your favorite shoes, the new R8 is familiar and foreign at the same time. This development program pulls from the best of a legendary supercar brand's flair for presence and idiosyncrasy. It also takes lessons from the company's customer racing effort, as well as Audi's own impeccable taste in road manners and clean, elegant design. The end result is an inspired supercar with daily-driver comfort and a surprisingly aggressive side. Like a new pair of your favorite shoes, the new R8 is familiar and foreign at the same time. It's more comfortable and compliant on the street, thanks to a new chassis that's 40 percent stiffer, allowing for a more forgiving suspension tune. The completely reworked 5.2-liter V10 engine has a Great White bite to go with its Rottweiler bark, but only after you provoke it from polite mode with a press of either the Drive Select button or the exhaust sound switch. The seats are comfortable – that can be said for both the standard sport seats or optional carbon-shell, race-style buckets. Wrapped in a cabin that's much more futuristic and forward-looking than the last R8, the overall driving experience is refined, luxurious, and high-tech.