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Auto sales in March and first quarter down nearly across the board

Nearly every major automaker reported weak U.S. sales for March and the first quarter of 2019, citing a rough start to the year, but said a robust economy and strong labor market should encourage consumers to buy more vehicles as 2019 rolls on. GM, which no longer releases monthly sales figures, saw first-quarter sales fall 7 percent, with declines across all brands. Sales of Silverado pickup trucks fell nearly 16 percent and the high-margin Chevy Suburban large SUV dropped 25 percent. Ford also no longer releases monthly sales numbers, but is due to release its first-quarter sales figures on Thursday. According to industry data, Ford's sales fell 2 percent in the quarter and 5 percent in March. Ford representatives did not immediately respond to requests for comment. FCA reported a 7 percent fall in U.S. sales in March and a 3 percent drop for the first quarter. All of FCA's brands dropped in March, except for Ram, which saw a 15 percent increase in pickup truck sales. "The industry had a tough first quarter, but with spring finally starting to show its face and continued strong economic indicators ... we are confident that new vehicle sales demand will strengthen going forward," FCA's U.S. head of sales, Reid Bigland, said in a statement. Toyota reported a 3.5 percent fall in U.S. sales in March and 5 percent for the first quarter, hurt by declining demand for its Corolla sedans and Camry vehicles. "While some of our competitors are abandoning sedans, we remain optimistic about the future of the segment," Toyota said in a statement. Nissan posted a 5.3 percent drop in sales in March, and its first-quarter sales were down 11.6 percent. Honda and Hyundai bucked the trend. Honda's U.S. sales rose 4.3 percent in March and 2 percent in the quarter, while Hyundai's were up 1.7 percent and 2.1 percent, respectively. Passenger-car sales suffered throughout the January-March quarter compared with the same period in 2018 as Americans continued to abandon them in favor of larger, more comfortable pickup trucks and SUVs, which are far more profitable for automakers. The battle for market share in the particularly lucrative large-pickup truck market intensified in the quarter, as Fiat Chrysler Automobiles' Ram brand outsold the U.S.' No. 1 automaker General Motors' Chevrolet-brand trucks. The two automakers have both launched redesigned pickup trucks.

Auto Mergers and Acquisitions: Suicide or salvation?

We love the Moses figure. A savior riding in from stage right with the ideas, the smarts, and the scrappiness to put things right. Alan Mullaly. Carroll Shelby. Lee Iacocca. Andrew Carnegie. Steve Jobs. Elon Musk. Bart Simpson. Sergio Marchionne does not likely view himself with Moses-like optics, but the CEO of Fiat Chrysler Automobiles recently gave a remarkable, perhaps prophetic interview with Automotive News about his interest and the inevitability of merging with a potential automotive partner like General Motors. Marchionne has been overtly public about his notion that GM must merge with FCA. For a bit of context, GM sold 9.9 million vehicles in 2014, posting $2.8 billion in net income, while FCA sold 4.75 million units and earned $2.4 billion in net income, painting a very rosy FCA earnings-to-sales picture. But that's not the entire picture. Most people in the auto industry still remember the trainwreck that was the DaimlerChrysler "merger" written in what turned out to be sand in 1998. It proved to be a master class in how not to fuse two companies, two cultures, two continents, and two management teams. Oh, it worked for the two individuals at both helms pre-merger. They got silly rich. And the industry itself was in a misty romance at the time with mergers and acquisitions. BMW bought Rolls-Royce. Volkswagen Group bought Bentley, Bugatti, and Lamborghini, putting all three brands into their rightful place in both products and positioning. No marriages there, so no false pretense. Finally, Nissan and Renault got married in 1999. A successful marriage requires several rare elements in this atmosphere of gas fumes and power lust. But a successful marriage requires several rare elements in this atmosphere of gas fumes and power lust, the principle part being honesty. Daimler and Chrysler lied to each other. The heads of each unit, the product planners, and finance all presented their then-current and long-range forecasts to each other with less-than-forthright accuracy. Daimler was the far greater equal and no one from the Chrysler side enjoyed that. The cultures were entirely different, too, and little was done to bridge that gap. Which brings me back to the present overtures by Marchionne to GM. "There are varying degrees of hugs," Marchionne stated in the Automotive News piece. "I can hug you nicely, I can hug you tightly, I can hug you like a bear, I can really hug you." Seriously?

Ram recalling 1,747 diesel trucks for short-circuit risk

Diesel-powered Ram owners, it's recall time. Fiat Chrysler Automobiles has announced a voluntary recall of 1,747 Ram 1500 EcoDiesels from model years 2014 and 2015. Why so few? Well, this campaign is limited to just rear-wheel-drive models. The problem, this time around, is with a battery wiring harness that will chafe against a bracket if it wasn't assembled properly. This chaffing can lead to a short, causing a loss of power (the best-case scenario) or even a fire (probably the worst-case scenario). Fortunately, FCA is unaware of any accidents, fires, or other injuries caused by short circuits. The affected vehicles were sold in both the US and Canadian markets, although the vast majority of the trucks, 1,697 to be precise, are here in the land of the free and home of the brave. The remaining 50 vehicles were sold in Canada, and were likely purchased by those crazy enough to drive a high-torque, rear-drive pickup in a country almost perpetually covered in snow and ice. Regardless of whether your truck has an illuminated dashboard warning light or not, FCA is encouraging drivers of the affected vehicles to report to dealers for a free service when they receive a recall notice. Scroll down for the official press release from FCA, as well as the bulletin from the National Highway Traffic Safety Administration. Statement: Wiring Harness September 9, 2015 , Auburn Hills, Mich. - FCA US LLC is recalling an estimated 1,747 trucks in the U.S. and Canada to inspect, reroute and replace – as required – their wire harnesses to prevent a potential short-circuit. An investigation by FCA US discovered a battery wiring harness may chafe against a bracket if assembly protocols were not followed. This condition is limited to vehicles equipped with diesel engines and 4x2 drivelines. Such a condition has the potential to cause a short-circuit, which may lead to power loss or fire. The Company is unaware of any related injuries, accidents or fires. The campaign is limited to certain 2014-15 Ram 1500 pickups. It is estimated there are 1,697 in the U.S. and 50 in Canada. Affected customers will be advised next month when they may schedule service, which will be performed at no cost. While the condition may not be present in every vehicle, FCA US urges customers to note the information on their recall notices and respond accordingly. Illumination of a dashboard warning light is among the indicators that the condition is present.