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Mixed sales results, but automaker stocks rise on need for cars in Houston

DETROIT — The Big Three Detroit automakers on Friday reported better-than-expected August sales and issued optimistic outlooks for demand as residents of the Houston area replace flood-damaged cars and trucks after Hurricane Harvey, sending their stocks higher. General Motors, Ford and Fiat Chrysler posted mixed August U.S. sales, with GM up 7.5 percent and Ford and Fiat Chrysler down. Japanese automaker Toyota improved sales by nearly 7 percent, while Honda fell 2.4 percent. Still, analysts focused on the potential for Detroit automakers to cut inventories and stabilize used vehicle prices as residents of Houston, the fourth largest city in the United States, are forced to replace tens of thousands, perhaps hundreds of thousands, of vehicles after the devastation from Hurricane Harvey. Mark LaNeve, Ford's U.S. sales chief, told analysts on Friday that following Hurricane Katrina in 2005 "we saw a very dramatic snapback" in demand. That said, Ford sales fell 2.1 percent in August. It sold 209,897 vehicles in the United States, compared with 214,482 a year earlier. Sales were down 1.9 percent in the Ford division and off 5.8 percent at Lincoln. Demand was down for cars, crossovers and SUVs. It was not clear how many vehicles in the Houston area will be scrapped, LaNeve said, saying he had seen estimates ranging from 200,000 to 400,000 to 1 million. Ford's Houston dealers may have lost fewer than 5,000 vehicles in inventory, he said. Ford is the No. 1 automaker in the Houston market, with 18 percent share, according to IHS Markit. The company plans to ship used vehicles to Houston dealers and has "every indication we would have to add some production" of new vehicles to meet demand, LaNeve said. Investor concerns about inventories of unsold vehicles and falling used car prices have weighed on Detroit automakers' shares most of this year. Now, automakers can anticipate a jolt of demand from a big market that is a stronghold for Detroit brand trucks and SUVs. "It's got to be a positive for the industry," LaNeve said. Investors appeared to agree. GM shares rose as much as 3.3 percent to their highest since early March. Ford increased 2.8 percent at $11.34, and Fiat Chrysler's U.S.-traded shares were up 5.2 percent $15.91, hitting their highest in more than five years. GM reported a 7.5 percent increase in U.S. auto sales in August, helped by robust sales of crossovers across its four brands.

2018 GMC Sierra 1500 Buying Guide | What you need to know about this pickup truck

The GMC Sierra is a work-capable truck that can be optioned like a luxury car. Variety and choice are the keywords for the Sierra, not to mention close rivals like the Ford F-150, Ram 1500, and Chevrolet's own Silverado 1500. A Sierra buyer has a seemingly infinite list of choices when it comes to specifying exactly what they need in their pickup. In terms of cab length alone, there are three choices – Regular, Double, and Crew – to go along with your pick of Short, Standard, or Long cargo bed. Engines range from a 4.3-liter V6, upward to a range-topping 6.2-liter V8 available in top trim levels like the SLT and Denali. The Sierra can be ordered with a choice of two- or four-wheel drive, and transmissions include both a 6- and 8-speed automatic, depending on your choice of powertrain and trim. Changes for the 2018 model year include the standard fitment of a rearview camera, along with a Tire Fill Alert system that lets the driver know when the correct pressure has been reached. A 7.0-inch touch-screen stereo system is also now standard equipment on base Sierras. Is the 2018 GMC Sierra Safe? The National Highway Traffic Safety Administration gives the 2018 GMC Sierra 1500 an overall crash-test rating of five stars. In front and side impact tests, the latest Sierra 1500 scored a five-star safety rating. A four-star rating was recorded in the Rollover resistance test – this rating applies to Sierra trucks fitted with either rear- or all-wheel drive. Because the Sierra is such a popular vehicle, it's worth noting that the NHTSA conducted crash tests on models fitted with both these drivetrains, and in two cab lengths. The Insurance Institute for Highway Safety, which provides ratings for new vehicles based on its own comprehensive crash tests, also tested two versions of the Sierra 1500. The extended cab model registered "good" ratings in all but one of the IIHS' crash tests. Driver side protection in the small overlap test was deemed "acceptable" – front passenger-side results were not rated. Headlight effectiveness was given an "acceptable" rating, dependent on trim level selected. Meanwhile, the ease of use of the Child Seat Anchors (LATCH) was deemed "acceptable" in the extended cab Sierra. Ratings dip slightly for the Sierra 1500 in standard cab format. Driver-side protection in the front small overlap test drops to "marginal," while the available LATCH system scored a "poor" for its ease of use.

GM recalling 521,817 cars in two campaigns

General Motors is issuing two, separate recalls covering a total of 521,817 vehicles worldwide. The larger campaign covers 468,887 units of the 2011-2012 Chevrolet Malibu. Specifically, 437,045 of these are in the US, and the rest are outside the country. In these sedans, a steel cable that connects the seat belt to the vehicle can fatigue and separate. GM knows of 36 claims about the problem but only one minor injury. According to The Detroit News, this happened when a taxi driver hit his head. To fix things, dealers will replace the "outboard lap mounting bracket," which will move the tensioner rearward. They'll also inspect and if necessary replace the steel cable and lap pretensioner. In the second campaign, 52,930 examples the 2015 Chevy Colorado and 2015 GMC Canyon have seat frame attachment hooks that were installed incorrectly during assembly. GM hasn't received any reports of crashes, injuries, or fatalities about this problem. Dealers will inspect the affected trucks and repair as necessary. GM spokesperson Alan Adler told Autoblog that he didn't yet have a specific date when affected owners would receive official mailings about either of these recalls. GM Statement General Motors is recalling 48,309 2015 model year Chevrolet Colorado and GMC Canyon midsize pickup trucks in the U.S. because certain seat frame attachment hooks were not properly attached to the vehicle body during assembly. Dealers will inspect the potentially affected seats for proper installation and repair if necessary. GM knows of no crashes, injuries or fatalities related to this condition. The total vehicle population of the recall is 52,930 including 4,620 vehicles sold in Canada. General Motors is recalling 437,045, 2011-2012 model year Chevrolet Malibus in the U.S. because the flexible steel cable that connects the safety belt to the vehicle can fatigue and separate over time as a result of occupant movement in the seat. Dealers will replace the outboard lap mounting bracket to relocate the tensioner slightly rearward. Dealers will inspect the cable and, if necessary, replace the lap pretensioner. GM knows of 36 claims, no crashes or fatalities and one minor injury reportedly related to the condition. The total vehicle population of the recall is 468,887 including Canada, Mexico and exports.