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Auto sales in March and first quarter down nearly across the board

Nearly every major automaker reported weak U.S. sales for March and the first quarter of 2019, citing a rough start to the year, but said a robust economy and strong labor market should encourage consumers to buy more vehicles as 2019 rolls on. GM, which no longer releases monthly sales figures, saw first-quarter sales fall 7 percent, with declines across all brands. Sales of Silverado pickup trucks fell nearly 16 percent and the high-margin Chevy Suburban large SUV dropped 25 percent. Ford also no longer releases monthly sales numbers, but is due to release its first-quarter sales figures on Thursday. According to industry data, Ford's sales fell 2 percent in the quarter and 5 percent in March. Ford representatives did not immediately respond to requests for comment. FCA reported a 7 percent fall in U.S. sales in March and a 3 percent drop for the first quarter. All of FCA's brands dropped in March, except for Ram, which saw a 15 percent increase in pickup truck sales. "The industry had a tough first quarter, but with spring finally starting to show its face and continued strong economic indicators ... we are confident that new vehicle sales demand will strengthen going forward," FCA's U.S. head of sales, Reid Bigland, said in a statement. Toyota reported a 3.5 percent fall in U.S. sales in March and 5 percent for the first quarter, hurt by declining demand for its Corolla sedans and Camry vehicles. "While some of our competitors are abandoning sedans, we remain optimistic about the future of the segment," Toyota said in a statement. Nissan posted a 5.3 percent drop in sales in March, and its first-quarter sales were down 11.6 percent. Honda and Hyundai bucked the trend. Honda's U.S. sales rose 4.3 percent in March and 2 percent in the quarter, while Hyundai's were up 1.7 percent and 2.1 percent, respectively. Passenger-car sales suffered throughout the January-March quarter compared with the same period in 2018 as Americans continued to abandon them in favor of larger, more comfortable pickup trucks and SUVs, which are far more profitable for automakers. The battle for market share in the particularly lucrative large-pickup truck market intensified in the quarter, as Fiat Chrysler Automobiles' Ram brand outsold the U.S.' No. 1 automaker General Motors' Chevrolet-brand trucks. The two automakers have both launched redesigned pickup trucks.

GM drops diesel engines for 2020 Chevy Equinox and GMC Terrain crossovers

GM is officially discontinuing the diesel engine in the Chevy Equinox and GMC Terrain for the 2020 model year. The 1.6-liter turbodiesel was always an oddball of an engine in the compact crossover segment, and now the experiment has come to an end. The Car Connection initially reported the news, and a GMC spokesperson, Stuart Fowle, confirmed it to us this morning.  “A huge majority of our Terrain customers have opted for one of our two gas engines," says Fowle. We canÂ’t say this eventuality comes as a massive surprise, as we saw news from couple of months ago that GM was dropping all-wheel drive from the diesel-powered cars for 2020. Low demand was cited as the reason for that cull, and itÂ’s the same for the little GM crossovers this time around, too. These vehicles were the only ones powered with a diesel engine in their class, but thatÂ’s going to be changing. Just as GM is going away from the diesel, Mazda is finally bringing its diesel to market in the CX-5. YouÂ’ll only be able to get that engine in the most expensive ($42,045) trim level, combined with all-wheel drive, though. The cheapest Equinox diesel starts at a comparably low $30,795. ThatÂ’s a $2,400 upcharge over the base 1.5-liter turbo four-cylinder, and the value is questionable. Mileage is better, but diesel fuel is more expensive. Towing capability didnÂ’t increase over the base engineÂ’s 1,500-pound capacity, but the extra torque around town was nice. As diesels go in the U.S., this one was rather rough and noisy, possibly contributing to some turning their noses up after a test drive. Perhaps another reason for its demise was that the much quicker 2.0-liter turbo Equinox was only $100 more than the diesel. This engine offered significantly better towing at 3,500 pounds, too. You can read all about what we thought of the diesel in our first drive review here, but the 2019 model year is the last one if you had it on your shortlist. This article has been updated to indicate the source.

Why Cadillac thinks it needs to succeed in Europe to sell cars elsewhere

Ward's Auto has taken an interesting look at the renewed focus General Motors is showing towards Cadillac in Europe. Susan Docherty, president and managing director of Chevrolet and Cadillac in Europe (pictured), says in order for the luxury brand to thrive in China, it first needs to succeed in the old country. The reason? Chinese buyers look to Europe for cues as to what's deemed worthy of the term "luxury." There are hurdles to the plan, however. In addition to the fact that the EU is flooded with high-end nameplates, GM doesn't necessarily have the distribution network in place to put buyers behind the wheel.
Combine that with persistent economic woes and Cadillac's checkered past marred by a lack of diesel engine options and a bankrupt distributor, and the road ahead for the brand looks like less of an uphill climb and more like a straight-up cliff face. But Docherty is optimistic and says she has a plan for the brand. We recommend heading over to Ward's for a closer look at the full read.