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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.

Mazda expands scope of vehicles affected by Takata airbag recall to 330k

Earlier this week a Reuters report indicated that Mazda was considering a nationwide expansion of its recall for vehicles equipped with Takata airbag inflators. The company has now confirmed said expansion, with the vehicle count jumping from 86,770 to 330,000 affected in the US. As before, the affected vehicles are Mazda6 and RX-8 cars from the 2004 to 2008 model years. Mazda reports that Takata has tested a "large number of inflators removed from Mazda vehicles" and not found any to be "non-compliant" as of yet. With that said, the company also reports in its statement that one 2005 Mazda6, located in Florida, has been identified as having had an "abnormal" deployment of the driver's side airbag. For what it's worth, though the company's statement references the Takata inflator issue as a proper recall, it is calling its own program of notification a "Safety Improvement Campaign" for the moment. Find the full, if brief, Mazda press release in the form below. UPDATED MAZDA STATEMENT REGARDING TAKATA AIRBAGS Dec 11, 2014 WASHINGTON, DC (December 11, 2014) – In addition to the actions announced on December 4, 2014, as discussed in a separate document, Mazda today announced the following steps in the Takata recall: Mazda will institute a nationwide Safety Improvement Campaign of 2004-2008 model-year Mazda6 and RX-8 models equipped with certain Takata airbag inflators. The nationwide Safety Improvement Campaign will cover the driver's-side airbag inflator, as Mazda has not made a safety defect determination at this time. This action will support us to gather additional parts for examination and to promote customer satisfaction and safety. There are approximately 330,000 vehicles included in this Safety Improvement Campaign in the United States So far, Takata has tested a large number of inflators removed from Mazda vehicles, and NONE have been found to be non-compliant at this time One vehicle – a 2005 Mazda6 located in Florida – has been identified as having experienced an abnormal driver's-side airbag deployment. Mazda has worked closely with NHTSA on this situation Mazda will participate in the independent, industry-wide joint testing program for Takata airbag inflators For history, on December 4, 2014, Mazda announced: It would expand the area of the high-temperature, high-humidity region recall to include the Gulf Coast states.

Evo blasts around in a Spa 24H-winning Mazda RX-7

Think of the Mazda RX-7 today, and your thoughts likely turn to the turbocharged third-generation version of the '90s that's an icon among the tuning and drifting communities. Many years before that swoopy coupe was hanging the tail out, the first model of RX-7 was also quite a track star, though. Evo's Richard Meaden has gotten ahold of a race-prepped version that counts a victory in the 1981 Spa 24 Hours to its name – the first Japanese car to claim that honor – for a fantastic video. With 225 horsepower and weighing around 1,984 pounds, this RX-7 doesn't look like a giant killer on paper. However as Meaden illustrates, the coupe puts those rotary-powered ponies to very good use. Driving it requires constantly keeping things on the boil because the muscle is essentially absent below 7,000 rpm. Once in the sweet spot, things start progressing quickly, though. As a wonderful cap to the wall of noise from the engine, little licks of flame also shoot out of the exhaust on downshifts. Thankfully, Evo's video team captures all of the mechanical noises quite well, and the clip is a treat for those with a good pair of headphones. Despite the race-winning pedigree, Meaden has no problem grabbing the little coupe by the scruff of the neck. He chucks it through the corners to get the tail loose, and the little wisps of smoke from the rear tires prove the original RX-7 knows how to drift too. These early cars definitely worth being remembered in the pantheon of Mazda performance.