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Major automakers post mixed US June sales figures

General Motors, Ford and Fiat Chrysler Automobiles NV posted declines in US new vehicle sales for June on Monday, while major Japanese automakers reported stronger figures. Once again, demand for pickup trucks and crossovers offset a decline in sedan sales. Automakers' shares rose as overall industry sales still came in above Wall Street expectations. The US auto industry is bracing for a downturn after hitting a record 17.55 million new vehicles sold in 2016. Analysts had predicted that overall, US vehicle sales would fall in June for the fourth consecutive month. As the market has shown signs of cooling, automakers have hiked discounts and loosened lending terms. Car shopping website Edmunds said on Monday the average length of a car loan reached an all-time high of 69.3 months in June. "It's financially risky, leaving borrowers exposed to being upside down on their vehicles for a large chunk of their loans," said Jessica Caldwell, Edmunds' executive director of industry analysis. GM said its sales fell about 5 percent versus June 2016, but that the industry would see stronger sales in the second half of 2017 versus the first half. "Under the current economic conditions, we anticipate US retail vehicle sales will remain strong for the foreseeable future." GM shares were up 2.4 percent in morning trading, while Ford rose 3.3 percent and FCA shares jumped 6 percent. "US total sales are moderating due to an industry-wide pullback in daily rental sales, but key US economic fundamentals clearly remain positive," said GM chief economist Mustafa Mohatarem. "Under the current economic conditions, we anticipate US retail vehicle sales will remain strong for the foreseeable future." Ford said its sales for June were hit by lower fleet sales to rental agencies, businesses, and government entities, which fell 13.9 percent, while sales to consumers were flat. But it sold a record 406,464 SUVs in the first half of the year, with Explorer sales increasing 23 percent in June. And sales of the F-150 had their strongest June since 2001. On a media call, Ford executives said an initial read of automakers' sales figures indicated a seasonally adjusted annualized rate of around 17 million new vehicles for the month, which would be better than 16.6 million units analysts had predicted. FCA said June sales decreased 7 percent versus the same month a year earlier.

Formula One speeds towards radical thousand-horsepower shakeup

The teams, the drivers, the fans, the circuits... few, if any, were satisfied with how Formula One has shaped up since the current regulations took hold last year. But that doesn't mean they aren't working on it. At a recent meeting of the F1 Strategy Group, the leading parties in the sport outlined a new framework that would radically shake up the cars themselves while keeping costs in check. And the biggest change could see the engines producing around 1,000 horsepower. Although a proposal put forth by Ferrari to ditch the current V6 hybrid engines in favor of new twin-turbocharged units was rejected by Honda and Mercedes, the members of the group approved in principal to increase the fuel flow in the existing engines to dramatically boost output. As it stands, the current 1.6-liter turbocharged V6 engines develop around 600 horsepower, with an additional 160 or so kicked in by the electric Energy Recovery System, for a combined output of about 760 hp. What's not clear at the moment is whether the increased fuel flow would necessitate either the return of mid-race refueling (currently banned) or the installation of larger fuel tanks. Red Bull and McLaren also submitted proposals to radically redesign the shape of the cars as well, however a more evolutionary approach was adopted instead. Though far from finalized, the new design would keep the same basic form of the current chassis, but with adjustments to make them more aesthetically pleasing while producing more downforce. Wider tires are also said to be part of the mix. With more power and more grip from the tires and aero, the resulting cars would most certainly end up going much faster than the current ones, which are already starting to nudge the lap records at some of the circuits, many of which were set during the V10 era. The F1 Strategy Group is made up of representatives of the FIA, Formula One Management and six leading teams. The next step will be for the teams' technical directors to iron out how to implement what their bosses have agreed to. If they settle the details fast enough, the revised regulations could be pushed through in time for next season. News Source: AutosportImage Credit: Mark Thompson/Getty Motorsports Ferrari Honda Infiniti McLaren Mercedes-Benz F1

Florida woman says Takata airbag deployment left her paralyzed

A malfunctioning Takata airbag left a Florida woman paralyzed from the neck down following an otherwise minor car accident last year, a lawsuit filed last week alleges. Patricia Mincey says in court documents that, instead of deploying normally, the driver-side airbag in her 2001 Honda Civic deployed with such force that it injured her neck and rendered her a quadriplegic. The lawsuit accuses Takata and Honda of deliberately concealing information about the defect and taking belated action to protect Mincey and other motorists from airbags that may harm them instead of saving their lives. At least five deaths and 139 injuries have been linked to the flawed airbags in Honda vehicles. "There is a systemic failure of these companies to come clean with information they know very early on of problems," Ted Leopold, Mincey's attorney, tells Autoblog. "Instead of doing the right thing, they try to sweep the problems under the rug until there are so many deaths and injuries they're left with no choice. We saw it with General Motors ignition switches, we saw it with the Toyota unintended acceleration cases and now we see it here." Long History Of Takata-Related Recalls Four days after Mincey's accident, Honda recalled her car as part of a 5,394,000-vehicle recall that sought to repair vehicles in which the airbag inflators could rupture. Her accident took place in Jacksonville, Florida, a state in which manufacturers have said high humidity could cause a heightened risk of problems for Takata airbags. She was wearing her seat belt at the time of the crash, according to court documents, and her car was traveling approximately 22 miles per hour. Mincey remains hospitalized in a long-term care and rehabilitation facility near her Florida home, her attorney said. She is seeking compensation in excess of $15,000 for her injuries and punitive damages. Problems with the Takata airbags were discovered as early as 2001, when Isuzu issued the first recall related to high-pressure deployments. But the company continued to manufacture defective airbags, which have subsequently been flagged in dozens of recalls over the past 14 years. Approximately 21 million vehicles have been affected in the United States. Congress conducted hearings on the companies' delayed responses to the safety crisis last year.