Sharp 1973 Torino Gran Sport Fastback on 2040-cars

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The next steps automakers could take after sales drop again in April

DETROIT (Reuters) - Major automakers on Tuesday posted declines in U.S. new vehicle sales for April in a sign the long boom cycle that lifted the American auto industry to record sales last year is losing steam, sending carmaker stocks down. The drop in sales versus April 2016 came on the heels of a disappointing March, which automakers had shrugged off as just a bad month. But two straight weak months has heightened Wall Street worries the cyclical industry is on a downward swing after a nearly uninterrupted boom since the Great Recession's end in 2010. Auto sales were a drag on U.S. first-quarter gross domestic product, with the economy growing at an annual rate of just 0.7 percent according to an advance estimate published by the Commerce Department last Friday. Excluding the auto sector the GDP growth rate would have been 1.2 percent. Industry consultant Autodata put the industry's seasonally adjusted annualized rate of sales at 16.88 million units for April, below the average of 17.2 million units predicted by analysts polled by Reuters. General Motors Co shares fell 2.9 percent while Ford Motor Co slid 4.3 percent and Fiat Chrysler Automobiles NV's U.S.-traded shares tumbled 4.2 percent. The U.S. auto industry faces multiple challenges. Sales are slipping and vehicle inventory levels have risen even as carmakers have hiked discounts to lure customers. A flood of used vehicles from the boom cycle are increasingly competing with new cars. The question for automakers: How much and for how long to curtail production this summer, which will result in worker layoffs? To bring down stocks of unsold vehicles, the Detroit automakers need to cut production, and offer more discounts without creating "an incentives war," said Mark Wakefield, head of the North American automotive practice for AlixPartners in Southfield, Michigan. "We see multiple weeks (of production) being taken out on the car side," he said, "and some softness on the truck side." Rival automakers will be watching each other to see if one is cutting prices to gain market share from another, he said, instead of just clearing inventory. INVESTORS DIGEST BAD NEWS Just last week GM reported a record first-quarter profit, but that had almost zero impact on the automaker's stock. The iconic carmaker, whose own interest was once conflated with that of America's, has slipped behind luxury carmaker Tesla Inc in terms of valuation.

Ken Block rally cars go blue in the face (and everywhere else)

Well at least we now know why Ken Block "just ain't care" about smashing up his Ford Fiesta rally car recently. It's because he's getting a full brand makeover including a new team name, new paint scheme and even a new headquarters. Formerly known as Monster World Rally Team, Block and his Fiesta will now be competing under the Hoonigan Racing Division name, which is based out of a new 12,000 square foot facility located in Park City, UT.
As you can tell in the image above, Hoonigan Racing will replace the familiar black, white and green paint scheme with a more colorful design featuring plenty of blue, purple and red; the Monster Energy logo retains some of the car's green. The new paint scheme was inspired by Block's love of skateboard graphics from the '80s and early '90s as well as "Miami Vice-era" speedboats.
Block will continue to compete in multiple rally racing series such as Global RallyCross, World Rally Championship and X Games. The new headquarters features office space on one side and a shop for the cars on the other side. The building features plenty of stuff you'd expect from a company designed around Ken Block, including a massive gaming station for racing video games, recycled shipping containers used throughout the facility and a black bear.

Ford recalls over 680,000 Ford Fusions, Mondeos, and Lincoln MKZs for seat belt pretensioners

Update: We spoke with a Ford representative who said that owners will be notified by mail during the week of January 16 . Dealers will also have the fix available at the same time. Owners can bring in their vehicles to dealers for an evaluation in the mean time. The main text has been updated to reflect this. The Basics: Ford is recalling 680,872 2013-2016 Ford Fusions, 2015-2016 Ford Mondeos, and 2013-2015 Lincoln MKZ s for an issue with front driver-side and passenger-side seat belt pretensioners. The Problem: The seat-belt pretensioners did not have sufficient insulation applied. When the pretensioners are activated, the heat generated can cause the cables connected to the belts to separate, which in turn can prevent the seat belts from effectively restraining the occupant. This can lead to injuries. Injuries/Deaths: Ford reports two accidents and two injuries have occurred that are related to this recall. The fix: A dealer technician will inject an insulation coating around the pretensioner. This should effectively keep the heat away from the cables, ensuring the seat belt will properly restrain the user in a collision. If you own one: Affected owners will be notified by mail on the week of January 16. Dealers will have the fix available that week, and owners will be able to bring in their vehicles for the fix to be implemented free of charge. Related Video: