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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.

Lincoln Continental production likely to shift to Flat Rock

Lincoln production may be returning to Michigan, according to a new report from Automotive News. While the brand's current big sedan, the MKS, is built alongside the Ford Taurus, Ford Explorer, and their Police Interceptor counterparts at the Blue Oval's Chicago, IL factory, the production version of the Continental won't be screwed together in the Windy City. According to AN, "industry sources" claim the Continental will join the Ford Mustang and Ford Fusion – on which the big Lincoln is loosely based – at the company's Flat Rock, MI factory. The move isn't just based on convenience, though. Ford is selling a lot of Explorers, and shifting Lincoln production away from Chicago Assembly frees up production capacity for the popular SUV. "Chicago Assembly Plant is vital to our global manufacturing footprint and will continue to manufacture the Ford Taurus, Ford Explorer and Police Interceptor vehicles even after we phase out production of the MKS in 2016," Ford told Automotive News. "We will continue to match production to demand." Looking at the numbers further backs up the argument against Lincoln production in Chicago. Last year alone, Ford built nearly 285,000 Explorers and over 73,000 Taurus sedans, compared to just 8,300 Lincolns. Finally, as AN tells it, Ford is almost telegraphing the Continental's arrival in Flat Rock. The facility has a four-week shut down scheduled from June 15 through July 13, which is twice as long as the typical summer vacation, while there's another two weeks off slated for September. Related Video:

Ford rethinking vehicle launch strategy

With a new boss at the helm, Ford is looking at new ways to improve its vehicle launches in North America to prevent recent issues that have popped up with models like the Lincoln MKZ, Ford Escape and Ford Fusion. Speaking with Automotive News, Ford's new president of the Americas, Joe Hinrichs, revealed a few ways the automaker plans to avoid early build issues such as the engine fires on certain 2013 Escape and Fusion models and months-long delays for customers to receive their MKZs.
It sounds like the root of the problems may have been Ford's relationship with suppliers compounded by the fact that the product surge came on the heels of the recent industry-crippling recession, and in the AN article, Hinrichs says improvements are being made to reduce problems during the launch of new or redesigned models. Three such improvements that were implemented during the first quarter of this year including more rigorous quality comparisons, better use of computer technology to catch major problems sooner and hiring engineers to work closer with suppliers.