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U.S. auto sales fall in July, as Detroit dials back on inventory, rental sales

DETROIT — U.S. carmakers said on Tuesday they continued to slash low-margin sales to daily rental fleets in July as General Motors, Ford and Fiat Chrysler Automobiles struggled to curb a slide in retail sales. July is on track to be the fifth straight month in which the annual pace of car and light truck sales declined from the same month a year ago, in part because of fewer fleet sales, analysts and industry executives said. July 2016 sales hit a strong 17.9-million-vehicle pace. GM said the seasonally adjusted annual sales rate fell to an estimated 16.9 million vehicles in July. At midmorning on Tuesday, GM shares were down 3.4 percent at $34.77, Ford was down 2.8 percent at $10.91, and Fiat Chrysler shares were down 0.3 percent at $12.05 in New York. GM sales dropped 15 percent from a year ago to 226,107 vehicles, as the company cut rental fleet sales more than 80 percent. The automaker said inventories of unsold vehicles at month's end were 104 days, down from 105 days at the end of June. GM has promised investors to reduce inventories to 70 days by year-end. Ford said its July sales dipped 7.5 percent to 200,212 vehicles, as it cut fleet sales more than 26 percent. Inventories fell to 77 days from 79 the previous month. Fiat Chrysler said sales dropped 10 percent to 161,477, as it also cut back sales to daily rental fleets. Among the top Japanese companies, only Toyota reported a year-to-year gain, with sales up 4 percent to 222,057 — just 4,000 units behind GM. Honda sales were down 1 percent to 150,980 — its first-quarter sales continuing to decline in North America but seeing a big increase in China. And Nissan sales fell 3 percent to 128,295. GM, Ford and Fiat Chrysler have cautioned that second-half financial results likely will be lower than first-half results, in part reflecting production cuts in North America and pricing pressures. The automakers this year have been deliberately dialing back sales to rental-car companies, which often generate little to no profit, while struggling to keep retail sales from sagging further, according to industry analysts. Industry consultant LMC cut its full-year forecast for new vehicle sales to 17 million vehicles. Automakers sold a record 17.55 million vehicles in the United States in 2016.

Ford recalling 450,000 Fusion, Mercury Milan sedans

Ford has announced a pair of recalls, and both are critical safety issues. The exponentially larger of the two recall campaigns affects over 450,000 Ford Fusion and Mercury Milan sedans manufactured at the Hermosillo plant between July 21, 2008, and March 4, 2011. The canister purge valve in the fuel tank could malfunction and could cause the top of the tank to crack and leak fuel. That could cause a fire, although Ford "is not aware of any accidents, injuries or fires" resulting from the issue. Affected vehicles will have their ECU software updated and their fuel tanks inspected for potential replacement. The company estimates there are 411,205 affected units in the United States (and its federalized territories), plus another 33,605 in Canada, and 7,055 in Mexico. The second recall affects 13 F-650 trucks. The column shifter's park position mechanism may fracture and let the truck roll away unexpectedly. Those 2016 models built in Ohio between July 29 and September 3, 2015 are all located in the US. Fixing the problem will require replacing the steering column and reconfiguring the instrument panel. FORD ISSUES TWO SAFETY RECALLS IN NORTH AMERICA DEARBORN, Mich., Nov. 23, 2015 – Ford Motor Company is issuing two safety recalls in North America. Ford is not aware of any accidents, injuries or fires related to these conditions. Details are as follows: Ford issues safety recall for certain 2010-2011 Ford Fusion and Mercury Milan vehicles in North America for potential fuel tank issue Ford Motor Company is issuing a safety recall for approximately 450,000 2010-2011 Ford Fusion and Mercury Milan vehicles for a potential issue with the fuel tank. Some of these vehicles might have a canister purge valve that does not work properly, causing internal pressure changes inside the fuel tank. Repeated pressure changes inside the tank could result in a crack on the top of the tank, possibly allowing fuel to leak. A fuel leak in the presence of an ignition source can lead to a fire. Ford is not aware of any accidents, injuries or fires related to this condition. Affected vehicles include certain 2010-2011 Ford Fusion and Mercury Milan vehicles built at Hermosillo Assembly Plant from July 21, 2008 through March 4, 2011. There are a total of approximately 451,865 vehicles that might be affected in North America, including 411,205 vehicles in the United States and federalized territories, 33,605 in Canada and 7,055 in Mexico.

Ram and Alfa Romeo top J.D. Power study of best automaker websites

Imagining a new car can be terrific fun, especially if the new car is an Alfa Romeo. So say the fantasy engineers at the J.D. Power agency, who’ve found that Alfa and Ram, sister brands under the Stellantis umbrella, offer potential buyers the most attractive consumer websites, which are often their first viable encounter with those vehicles. Power found that those marques lead the mass market and premium categories in its twice annual Manufacturer Website Evaluation Study. In the premium segment, Alfa Romeo led with 755 points, up six points over BMW, 10 points ahead of Infiniti, 14 points past of Jaguar, and 18 points up on Porsche. By contrast, Volvo and Audi trail the pack with 689 points, and are behind Genesis (699 points), Tesla (720), and Cadillac (721), all of which perform worse than the premium segment average of 724 points. The summerÂ’s study showed that in the mass market segment, Ram leads with an impressive 735 points, which puts it six points ahead of GMC, seven points atop its stablemate Jeep, eight points beyond Subaru, and 22 points ahead of the industry average. Volkswagen finished dead last among mass market names, but only one point behind Ford, 684 to 683 out of a possible 1,000. Segment average, as noted, was 713 points. “Website satisfaction can be volatile, and automotive websites are not immune to changing preferences,” said Jon Sundberg, director of digital solutions at J.D. Power. “However, manufacturers have shown to be very agile when it comes to website design and ensuring their sites meet modern standards, more so than many other industries, as exemplified through the study data.” Marketing/Advertising Alfa Romeo Audi BMW Ford Volkswagen