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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.

Autoblog's top 50 car photos of 2016

This one shouldn't need much explanation. We like cars a whole lot, and that includes not just driving them but taking great pictures of them. We've collected our 50 favorite images from this year in the mega-gallery above. It's a mix of old and new, with a healthy dose of vintage and modern race cars mixed in, and not one single shot under the harsh lights of an auto show. So click through and enjoy. Featured Gallery Autoblog's Top 50 Photos of 2016 View 50 Photos Image Credit: Copyright 2016 Autoblog.com Audi BMW Chevrolet Dodge Ferrari Ford Lamborghini Mazda McLaren Mercedes-Benz Porsche Rolls-Royce Volvo Convertible Coupe Motorcycle Luxury Racing Vehicles Performance Supercars Classics

Mazda recalls 374,500 vehicles because of Takata inflators

The Basics: Mazda will recall 374,519 examples of the 2003-2008 Mazda6 manufactured from May 29, 2002, to May 5, 2008; the 2006-2007 Mazdaspeed6 built from July 1, 2005, to June 29, 2007; and the 2004 RX-8 made from June 25, 2003, to June 30, 2003. The Problem: These vehicles contain front passenger airbag inflators from Takata that could rupture in a crash. If this happens, it could spray metal shrapnel at an occupant, which could seriously injure or even kill the person. Injuries/Deaths: The report from the National Highway Traffic Safety Administration didn't mention injuries or deaths, but Autoblog reached out to Mazda for confirmation. Takata's rupturing inflators allegedly have links to nine deaths globally and around 100 injuries. The Fix: Mazda dealers will replace the passenger side airbag with a new one. If You Own One: Mazda has not said when the replacements for these vehicles will begin. Experts believe that prolonged exposure to high humidity can cause the inflators' ammonium nitrate propellant to ignite too quickly in an accident. More Information: This recall is a nationwide expansion of Mazda's passenger's side airbag recall, which was previously limited to high-humidity regions. The population now includes 310,592 additional examples of the Mazda6, Mazda spokesperson Tamara Mlynarczyk tells Autoblog. The company discovered this new issue after Takata tested an inflator taken from a Mazda6, and it ruptured, according to NHTSA documents (PDF). The company already had a national safety campaign to fix the driver's side airbags in these vehicles. Related Video: RECALL Subject : Passenger Air Bag Inflator May Rupture Report Receipt Date: DEC 23, 2015 NHTSA Campaign Number: 15V869000 Component(s): AIR BAGS Potential Number of Units Affected: 374,519 All Products Associated with this Recall Vehicle Make Model Model Year(s) MAZDA MAZDA6 2003-2008 MAZDA MAZDASPEED6 2006-2007 MAZDA RX-8 2004 Details close Manufacturer: Mazda North American Operations SUMMARY: Mazda North American Operations (Mazda) is recalling certain model year 2003-2008 Mazda6 vehicles manufactured May 29, 2002, to May 5, 2008, 2006-2007 Mazdaspeed6 vehicles manufactured July 1, 2005, to June 29, 2007, and a limited production of model year 2004 RX-8 vehicles manufactured June 25, 2003, to June 30, 2003. The inflators in the front passenger air bags are susceptible to rupture in the event of a crash necessitating the deployment of the front passenger air bag.