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U.S. auto sales fall in July, as Detroit dials back on inventory, rental sales

DETROIT — U.S. carmakers said on Tuesday they continued to slash low-margin sales to daily rental fleets in July as General Motors, Ford and Fiat Chrysler Automobiles struggled to curb a slide in retail sales. July is on track to be the fifth straight month in which the annual pace of car and light truck sales declined from the same month a year ago, in part because of fewer fleet sales, analysts and industry executives said. July 2016 sales hit a strong 17.9-million-vehicle pace. GM said the seasonally adjusted annual sales rate fell to an estimated 16.9 million vehicles in July. At midmorning on Tuesday, GM shares were down 3.4 percent at $34.77, Ford was down 2.8 percent at $10.91, and Fiat Chrysler shares were down 0.3 percent at $12.05 in New York. GM sales dropped 15 percent from a year ago to 226,107 vehicles, as the company cut rental fleet sales more than 80 percent. The automaker said inventories of unsold vehicles at month's end were 104 days, down from 105 days at the end of June. GM has promised investors to reduce inventories to 70 days by year-end. Ford said its July sales dipped 7.5 percent to 200,212 vehicles, as it cut fleet sales more than 26 percent. Inventories fell to 77 days from 79 the previous month. Fiat Chrysler said sales dropped 10 percent to 161,477, as it also cut back sales to daily rental fleets. Among the top Japanese companies, only Toyota reported a year-to-year gain, with sales up 4 percent to 222,057 — just 4,000 units behind GM. Honda sales were down 1 percent to 150,980 — its first-quarter sales continuing to decline in North America but seeing a big increase in China. And Nissan sales fell 3 percent to 128,295. GM, Ford and Fiat Chrysler have cautioned that second-half financial results likely will be lower than first-half results, in part reflecting production cuts in North America and pricing pressures. The automakers this year have been deliberately dialing back sales to rental-car companies, which often generate little to no profit, while struggling to keep retail sales from sagging further, according to industry analysts. Industry consultant LMC cut its full-year forecast for new vehicle sales to 17 million vehicles. Automakers sold a record 17.55 million vehicles in the United States in 2016.

2014 Toyota Prius crash test rating drops to four stars

If nothing has changed, then how come something changed? That's the question behind the recent drop from five to four stars in the crash test rating for the Toyota Prius. As you can see on the National Highway Traffic Safety Administration (NHTSA) website, the 2014 Prius gets four stars overall while the 2013 got five. The two cars are basically identical, so what gives? Toyota says it is not sure why NHTSA rated the Prius a four this time. Starting with the 2011 model year, NHTSA updated its rating system and says in a FAQ that vehicles that had four- or five-star ratings could get lower ratings "even if no changes have been made to the vehicle." Green Car Reports says that the issue is a new set of frontal barrier tests that were conducted on the 2014 Prius last month and that resulted in the first new bits of crash test data for the car in years. The 2012 and 2013 Prius models were rated based on tests done in February 2011 on a 2011 Prius. All of these are variants of the third-generation model. The next-gen Prius is expected in 2015. Jana Hartline, environmental communication manager at Toyota Motor Sales, USA, told AutoblogGreen that the company doesn't quite know what's going on with the drop in crash test scores: There have been no changes in the test standards and no changes in the car, other than minor reinforcement for small overlap crash test which we believe did not compromise integrity. We are not sure why it rated a 4 this time. We are looking at the test results and we are confident the new generation will move back to 5 stars. 2014 Prius still has a five-star rating for the side crash test and four in the rollover test. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Toyota ready to design more heart-racing Prius

Long praised for its fuel economy and reliability, the Toyota Prius has been no stranger to less-than-flattering remarks about its styling and sense of excitement. In fact, the model is a regular movie punchline. For evidence, see Mark Wahlberg in The Other Guys or, more recently, Ice Cube in Ride Along. Apparently, Toyota President Akido Toyoda is getting the message and is pushing for what's been translated as a more "heart-racing" design for both the Prius and the Camry, the Canadian website Driving says. The Camry and Prius accounted for about a third of Toyota's US sales last year. With the Camry as the best-selling US model for each of the last dozen years, Toyota US head designer Kevin Hunter noted at the Detroit Auto Show last week that the Japanese automaker is looking for a "more emotional" design for the boxy sedan. The Prius redesign may have more constraints, as aerodynamics have to be factored in to ensure top-line fuel economy for the world's best-selling hybrid. Toyota used the Detroit show to show off the FT-1, a concept that many consider a preview of the new Supra. How this "Future Toyota 1" will affect the Prius and Camry redesigns, whenever they appear, remains in question but we like where things are headed.