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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.

Small number of 2013 Buick Encore models recalled for loose steering wheel

General Motors has issued a recall and a stop sale for the 2013 Buick Encore due to an issue that could result in the steering wheel falling off on certain models. In a letter to the National Highway Traffic Safety Administration, GM says that 144 Encores equipped with heated steering wheels could have been incorrectly retrofitted due to a parts shortage.
Needless to say, a loose or separated steering wheel would likely cause an accident if it happened while the vehicle was in motion. The recall doesn't go into effect until April 12, but concerned Encore owners can use the official recall notice (attached below) to contact GM.

Buick Enspire EV crossover concept claims 370 miles of range

For the Beijing Auto Show, Buick is showing yet another crossover, this one in concept form. It's called the Buick Enspire, and unlike the rest of the brand's crossovers, this one is all electric. It's more than just a repurposed Bolt EV, too. Instead of the Bolt's 150 kW and 200-horsepower motor, the Buick has a 410 kW motor, which equates to 550 horsepower. Buick claims the motor will get the crossover to 60 mph in just 4 seconds. The Enspire isn't all about performance, though. It would also have a very healthy claimed range of 370 miles, topping that of the longest-range Tesla. Fast charging is supported, with Buick saying it can recover 80 percent of its charge within 40 minutes, though the company doesn't say how potent the charger used for that number is. It also apparently has support for wireless charging. This Enspire concept is rather pleasant looking, too. It has smooth, elegant curves draped on a body with a very wide, aggressive stance. The grille is an interesting evolution of Buick's current design, exaggerating the current crossbar into large wings that spread into the lights, and trading the vertical slats of the main grille for a solid illuminated insert. The rear taillights are also distinctive in how they comprise one long, slender line that form a pseudo spoiler in the rear hatch. The interior is plenty swoopy, too, with a number of futuristic touches. It has an OLED touchscreen for infotainment, and the windshield features augmented reality capabilities displaying road information and navigation routes. Luxury touches include real wood arm rests and center console. Whether we'll see a production Buick with the capabilities of the Enspire is anyone's guess. Surely to have that level of power and range would make it immensely expensive, similar to or surpassing the Tesla Model S and the Jaguar I-Pace. That would be rarefied air for Buick. But we wouldn't be surprised to see either an all-new crossover, or a redesigned current model, sporting the designs seen on this concept. And many of the cues will likely spill over to other Buick products. And while the performance seen in this concept might not reach production, we also wouldn't rule out an electric Buick of some sort, probably a crossover in the near future. General Motors has made it very clear it's going to push electric vehicle development, and a Buick crossover would be a good choice for a few reasons.