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May 2016: FCA wins, Ford and GM stumble on weak car volumes

The May 2016 sales numbers are in, and it looks as though FCA is getting some vindication for boldly cancelling two slow-selling car models. Meanwhile, Ford saw overall sales dip and GM's May volume took a big dive versus the same month in 2015. While Marchionne's decision to axe the Chrysler 200 and Dodge Dart has drawn criticism as being short-sighted, it's working for FCA so far. Although the Dart and 200 aren't out of production yet and no capacity has been shifted to crossover or trucks, May's numbers show that the emphasis on Jeep and Ram models makes sense right now. FCA's US sales rose 1 percent last month compared to May 2015, putting the year-to-date total at 955,186 vehicles, an increase of 6 percent compared to the same period last year. Standouts included the Jeep Renegade, Compass, and Patriot, and the Fiat 500X. Ram pickup sales were down 3 percent. And your fun fact is that Alfa Romeo sales were up precisely 10 percent, for a total of 44 4Cs sold versus 40 in the same month last year. At FoMoCo, the Ford brand took a hit to the tune of 6.4 percent from May 2015 to 2016, registering 226,190 sales last month. Lincoln showed improvement on its modest numbers, going from 9,174 to 9,807, a 6.9 percent increase. Overall, Ford was down 5.9 percent for the month to 235,997; despite the slump, year-to-date total Ford sales are up 4.2 percent to 1,112,939. Strong sellers included Escape, Expedition, F-Series, and Transit - big stuff. Most small and/or efficient models (Fiesta, Focus, Fusion, C-Max) saw sales slides. Fusion sales were also down, likely due to effects of model changeover to the freshened 2017 model. Ford has promised four new crossovers and SUVs by 2020 and if things keep trending this way the company will be able to sell them, but things could change in the next four years. GM saw the worst of it for domestic brands. Retail and fleet sales were down for each of the four divisions, with the May 2016 total dropping 18 percent to 240,450 vehicles. GM's year-to-date sales are down 5.0 percent in 2016 to 1,183,705. Both the Sierra and Silverado were down significantly, and the majority of Chevy, Buick, GMC, and Cadillac nameplates saw sales decreases, with both small cars and larger utilities included. Not even big stuff could help GM this month, it seems. We'll have more on the rest of the industry's May sales as those figures trickle in.

GM Recalling Another 2.7 Million Vehicles In Five Separate Campaigns

The recalls keep rolling in from General Motors, evidently keen to avoid repeating the mistakes of the ignition-switch debacle and clean house. This time they're all coming at once, with five separate recalls announced together covering approximately 2.7 million vehicles. The largest of the five actions involves over 2.4 million units of the previous-generation Chevrolet Malibu and Malibu Maxx, Pontiac G6 and Saturn Aura in order to fix brake light wiring harness, which have been found to be susceptible to corrosion. The recall is separate from the 56k Aura sedans which GM recently recalled over faulty shift cables, not to mention the previous massive recall of 1.3 million vehicles – some of them the same models – but appears to have resulted from the National Highway Traffic Safety Administration investigation that started with the G6 almost a year ago. The second-largest campaign involves the 2014 Chevy Malibu, specifically those fitted with GM's 2.5-liter engine and stop/start system, approximately 140,000 examples of which has been found to have problematic brakes. The issue does not appear to be connected to the recall of 8k Malibu and Buick LaCrosse sedans (also involving brake woes) which we reported upon last week. Four crashes have been reported in such models, but GM admits it's not yet clear if the problem was a contributing factor in the accidents. A further 112k Corvette models from the 2005-2007 model years are being called in for problems with their low-beam headlamps resulting from a flexing relay control circuit wire that's not meant to bend. GM says it is "aware of several hundred complaints" about this issue, but notes that there have been no reports of related accidents. In addition, over 19k examples of Cadillac CTS from the 2013 and 2014 model years are being recalled over windshield wipers that might not work after a jump start. Finally, GM is also bringing in 477 examples of its 2014 Chevy Silverado, Tahoe and GMC Sierra (though not the Yukon) to fix a problem with a tie rod in its steering rack. As ever, all recall repairs will be performed free of charge, and GM is now estimating that recall-related actions this quarter will result in an estimated $200-million charge against its second-quarter earnings. Read the full announcement from GM below for further details.

Honda, Chevy reveal low-drag speedway aero for Indy 500

As the two automakers currently participating in the IndyCar Series, both Chevy and Honda were invited this year not only to provide engines to the teams on the starting grid, but to develop their own aerodynamics packages as well. Both revealed their designs for the road-course races a few months ago, but with the Indy 500 approaching at break-neck speed, they've now unleashed their aero approaches for speedways. Both are based on the Dallara DW12 chassis introduced to the series a couple of years ago, but sacrifice some of their downforce at the altar of speed. And you can tell as much from looking at them: both Honda (above) and Chevy (below) have streamlined their designs, with single-plane front wings, lower-profile rear wings and fewer winglets on the body and around the wheels in between. The idea is to allow the cars to reach higher top speeds with less drag, while offering the necessary amount of downforce for the banked turns. With the four opening road-course rounds complete, teams using either automaker's equipment will keep the existing aero kits on their cars for the Grand Prix of Indianapolis on the infield course next week, then switch to the speedway package for the Indianapolis 500 later this month. Then it'll be back and forth for the rest of the season as the circus switches between road courses and speedways. Honda Unveils 2015 IndyCar Super Speedway Aero Kit Apr 30, 2015 - SPEEDWAY, Indiana - To be used at the Indianapolis 500 - Manufacturer seeking 11th Indianapolis 500 victory since 2004 - First public running to take place Sunday at Indianapolis Honda today debuted the "Super Speedway" aero kit of aerodynamic upgrades and components its teams will use at this year's 99th running of the Indianapolis 500. The Honda Super Speedway Aero Kit, produced by Honda Performance Development, Honda's racing arm in North America, includes a variety of individual aerodynamic components fitted to the existing Honda-powered Dallara Indy car chassis. All are intended to give Honda's six Indy car teams – encompassing a potential 17 '500' entrants - the ability to maximize performance at the 2.5-mile Indianapolis Motor Speedway oval and other large ovals ( over one mile in length) on the 2015 Verizon IndyCar Series schedule. "We're excited to unveil our Super Speedway aero kit, the newest element in this era of enhanced manufacturer competition in the Verizon IndyCar Series," said Art St. Cyr, president of HPD.