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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.

Sweating the small stuff | 2017 Mazda CX-5 First Drive

The 2017 Mazda CX-5's door handles got their own design study. They got their own graphs, maths, and a team of people scientifically analyzing how humans interact with them. There was a whole to-do. And yet, you look at them back-to-back with their predecessors, a Spockian eyebrow reaching to the stars, and wonder what all the fuss was about. But apparently they're better. They're also perfectly illustrative of the entire effort to re-engineer and improve Mazda's best-selling model. At first, the 2017 Mazda CX-5 seems like a sensible evolution of its well-loved predecessor – there's sexier styling, a more premium cabin, and additional features, but the dimensions and engine specs look awfully similar. It certainly looks like one of those "the old car's great, let's not overthink the new one" redesigns. Except it isn't. Dig deeper and you'll see just how much meticulous work – from the door handles to the throttle response – went into making the new CX-5 a crossover that thoroughly trounces the majority of its competition. Take the efforts to make it quieter. According to Mazda's internal measurements, the sound-quelling improvements made for the CX-5's 2016 refresh already made it one of the quietest compact SUVs on the market. That apparently wasn't good enough. To what seems like an absurd degree, Mazda's engineers obsessively examined every nook, cranny, corner, and crevice to sniff out noise and eliminate it. Gaps were filled, insulation was injected, seals were added, air was redirected, glass was double glazed, and carpet replaced plastic coverings. It would seem that the Society of Persnickety Engineers is well represented at Mazda HQ. "I'm not sure how they found some of these," said Mazda vehicle development engineer Dave Coleman with a shake of his head, almost amused by the obsession and dedication of his colleagues across the proverbial hall in the sound-deadening department. (He goes over many of their enhancements in the video below.) And it worked. The new CX-5 is indeed incredibly quiet, even on San Diego's notoriously loud corrugated concrete freeways. It is quiet for a Mazda – a brand previously known for the exact opposite – and the entire segment. Even the fairly quiet 2017 Honda CR-V we drove on the same freeways on the way to San Diego couldn't match it. Actually, much of the driving experience can't be matched by a competitor.

Mazda and Clemson collaborate on Deep Orange 3 concept

There are school projects, and then there's the Mazda Deep Orange 3 Concept Car, a one-off built by Clemson University automotive engineering students and designed by Frederick Naaman from the Art Center College of Design in Pasadena. Clemson students unveiled the chassis at the 2012 SEMA show in Las Vegas, although this is the first showing of the car fully clothed.
Sporting a unique hybrid powertrain that can automatically switch between front-, rear-, and all-wheel drive. A gas-powered engine handles the fronts, while the rears are powered by an electric motor and a battery pack. The Deep Orange 3 also has an unusual three-plus-three layout, making it a much cooler version of your parent's old Vista Cruiser. The exterior sheetmetal clearly follows Mazda's established design language, and looks like it could easily pass for a five-door version of the Shinari Concept. It really is a great looking vehicle.
The Deep Orange 3 was part of Clemson's graduate-level auto engineering program, and is a regular partnership between the east coast school and the Pasadena-based design college's students. Clemson, Art Center and Mazda will be showing the Deep Orange 3 at the Center for Automotive Research Management Briefing Seminars in Traverse City, MI, from August 5 to August 8. Click through for a press release from Clemson University.