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Honda poised for growth, Detroit to hold steady, Car Wars study says

The automotive industry is expected to keep booming in the US over the next several years, but the train might start running out of steam in the long term, according to 2015's Car Wars report from Bank of America Merrill Lynch analyst John Murphy. The forecast focuses on changes between the 2016 and 2019 model years, and the latest trends appear similar in some cases to the past predictions. Sales are expected to keep growing and reach a peak of 20 million in 2018, according to the Detroit Free Press. The expansion is projected to come from a quick pace of vehicle launches, with an average of 48 introductions a year – 26 percent more than in 1996. Crossovers are expected to make up a third of these, maintaining their strong popularity. However, Murphy predicts a decline, as well. By 2025, total sales could fall to around 15 million units. As of May 2015, the seasonally adjusted annual rate for this year stands at 17.71 million. Like last year, Honda is predicted to be a big winner in the future thanks to products like the next-gen Civic. "Honda should be the biggest market share gainer," Murphy said when presenting the report, according to Free Press. Meanwhile, in a situation similar to Car Wars from 2012, a lack of many new vehicles is expected to cause a drop for Hyundai, Kia, and Nissan. Based on this forecast, Ford, General Motors, and FCA US will all generally maintain market share for the coming years. The report does make some future product predictions, though. The next Chevrolet Silverado and GMC Sierra might come in 2019, which is earlier than expected. Also, Lincoln could get a Mustang-based coupe for 2017, a compact sedan for 2018 and an Explorer-based model in 2019, according to the Free Press. Related Video: News Source: The Detroit Free PressImage Credit: Nam Y. Huh / AP Photo Earnings/Financials Chrysler Fiat Ford GM Honda Lincoln Car Buying fca us

Lincoln prepping MKZ re-launch?

Launching an all-new car is no easy task. Case in point is the 2013 Lincoln MKZ, introduced with the fanfare of a major nationwide marketing campaign, including expensive Super Bowl ads, just as Ford was curbing production over potential quality issues. The resulting mess was nothing short of a nightmare for any automaker - customers visiting dealerships looking for cars that hadn't been delivered yet. Disappointed buyers walked out of Lincoln retailers without new keys in their hands, or switched to a competing brand to fill empty spaces in their driveways.
The impact was painful, as Lincoln's sales in January and February of this year were among the lowest it has recorded in more than a quarter century. Even though March looked a bit brighter, with the supply crisis reportedly over (there are 3,000 units in transit and production is approaching 200 units per day) the automaker is reportedly studying the feasibility of giving its pivotal MKZ the launch it originally deserved.
According to TheDetroitBureau.com, putting the MKZ back on consumer's radar could cost Ford tens of millions of dollars, but that kind of investment may be warranted if potential buyers have forgotten about the new model... or worse, if they have forgotten about Lincoln.

Ford recalling 850,000 cars and SUVs for airbag issues

Ford has announced a major recall of 850,000 vehicles from model years 2013 and 2014 due to a problem with the "restraints control module."
According to Ford, a short circuit could develop in the module, causing the airbag warning light to illuminate. In more severe cases, dependent on where the short develops, the airbags and seatbelt pre-tensioners may not work in the event of an accident. The problems can be more wide-ranging than that, too, as systems that rely on information from the control module, such as the stability control can be affected.
With 850,000 vehicles affected, it's no surprise that some of Ford's volume leaders are covered. That includes the Fusion and Lincoln MKZ sedans, as well as the incredibly recall-prone Escape and the C-Max MPV.