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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.

100k Mazda6 sedans recalled over tire-monitoring systems

A tire pressure monitoring system (TPMS) is, as you might have guessed, designed to monitor the air pressure in the tires, and alert the driver if pressure drops. But a problem found in the Mazda6 could keep the system from doing its job. According to the recall notice issued by the National Highway Traffic Safety Administration, the TPMS in the Mazda6 might not recognize a loss in tire pressure if all the tires slowly deflate at the same time. Under-inflated tires, it goes without saying, could increase the risk of a crash. As a result, Mazda is recalling 99,711 examples of the 2014-2015 Mazda6 to have the system's software updated. RECALL Subject : Tire Pressure Monitoring System/FMVSS 138 Report Receipt Date: OCT 27, 2014 NHTSA Campaign Number: 14V675000 Component(s): TIRES Potential Number of Units Affected: 99,711 Manufacturer: Mazda North American Operations SUMMARY: Mazda North American Operations (Mazda) is recalling certain model year 2014-2015 Mazda6 vehicles manufactured October 25, 2012, to October 10, 2014. If the pressures of four of the tires on an affected vehicle gradually drop at the same time, the tire pressure monitoring system (TPMS) may not warn the driver of the drop in pressure. As such, these vehicles fail to comply with the requirements of the Federal Motor Vehicle Safety Standard (FMVSS) No. 138, "Tire Pressure Monitoring System." CONSEQUENCE: A vehicle that is driven with under inflated tires may experience a sudden tire failure, increasing the risk of a crash. REMEDY: Mazda will notify owners, and dealers will update the TPMS software, free of charge. The recall is expected to begin on December 10, 2014. Owners may contact Mazda customer service at 1-800-222-5500. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.

2016 Mazda6 and CX-5 see gentle price hike

Mazda has modestly updated the Mazda6 and CX-5 for the 2016 model year, and the company just announced revised pricing for the pair. The vehicles cost a little more now, but buyers also get additional features and an improved look. When it comes to the 2016 Mazda6, the already attractive sedan wears a revised look up front with more chrome and a redesigned cabin with a new instrument layout and seven-inch infotainment system on most models. Mechanically, things carry over with a 2.5-liter four-cylinder making 184 horsepower and 185 pound-feet and either a six-speed manual or automatic gearbox depending on trim. The base Sport trim with a six-speed manual gearbox costs $305 more than it did in 2015, and starts at $21,495*, plus an $820 destination charge on all models. Upgrading to the automatic gearbox at $22,995 also adds the revised infotainment system and reverse camera. Prices top out at $30,195 for the Grand Touring, which is $300 more than last year. All of the other versions see a $100 year-over-year increase. LED headlights are standard on the Grand Touring, but they can be added to the Touring through the Touring Technology package for $1,675. The 2016 CX-5 sees light exterior upgrades and similar interior improvements as the Mazda6, including the improved infotainment system for some trims. Pricing rings up for $250 more than last year, except the all-wheel drive Sport trim at just an extra $50. The cheapest CX-5 is the front-wheel Sport with a manual gearbox and 2.0-liter four-cylinder with 155 hp and 150 lb-ft, and it costs $21,795. All other models combine a 2.5-liter four-cylinder with 184 hp and 185 lb-ft with a six-speed automatic. Prices go all the way up to $29,470 for a CX-5 Grand Touring with all-wheel drive. There's a new i-Activesense package for the Grand Touring for $1,500, as well, that adds safety sensors and radar cruise control, but it can only be combined with the Grand Touring Technology Package for $1,505 with navigation and LED headlights. 2016 Mazda6 Pricing Announced IRVINE, Calif. (February 9, 2015) – Mazda North American Operations (MNAO) today announced pricing for its refreshed 2016 Mazda6 midsize sedan lineup. The 2016 Mazda6 is available in three trim levels – Sport, Touring and Grand Touring – and is equipped with the SKYACTIV-G 2.5-liter gasoline engine. There are a number of enhancements for 2016 including bold changes to the shape of the instrument panel and floor console giving the interior a fresh new look.