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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.

Recharge Wrap-up: Toyota i-Road and COMS in France, Tesla tours Northeast, EV attitudes in UK

Toyota's i-ROAD and COMS teeny, tiny, city EVs are joining the Citelib carsharing fleet in Grenoble, France. The ultra-compact EVs, which will become available in October, are meant to supplement the Grenoble metropolitan area's existing public transit infrastructure, which includes trams, buses and trains. Toyota's i-ROAD and COMS will be connected to the transit systems IT infrastructure, allowing users to visualize their route on their smartphone or computer, and reserve and pay for their car before they get dropped off near the charging station (or the other way around). Then, the user finishes (or begins) their trip with one of the EVs. Surveys show that use of public transport is increasing in Europe, but most users still have to walk 15 minutes or so to reach their destination. Adding the i-ROAD and COMS carsharing service to their commute makes the trip into the city center quicker and more flexible, while keeping the air clean. See more below. Toyota is providing 70 vehicles to the Citelib program as part of a three-year test, while French energy company EDF is contributing 30 charging stations to the project. The i-ROAD is a three-wheeled EV that seats two people, and it features Active Lean technology for stability and comfort in the corners. Its footprint is about one-fourth that of a regular car. The four-wheeled COMS EV seats one, but also features a small storage compartment in the rear. The Tesla Model S is going on tour throughout the Northeastern US to give test drives to the public. Beginning July 4 in Montauk, NY, and ending August 30 in Vergennes, VT, people will get the chance to take a 15-minute spin in what many consider to be the best electric car available as part of Tesla's Fully Charged tour. If you live in New York, New Jersey, Massachusetts, Maine, Connecticut, New Hampshire or Vermont, the Model S may be coming to a town near you (check the schedule here) and you'll get the chance to drive the car with a product specialist in the passenger seat to answer your questions. You can even bring up to three guests in the back seat. So if you live in one of the states where Tesla can't sell cars or doesn't have a store, this is your chance to get to know the vehicle and decide if you want to buy one. Or you can just see what it feels like to silently go from 0-60 in 4.2 seconds (hint: it's pretty cool). A UK Survey shows five percent of people there are considering buying an electric vehicle.

How Charlotte lost to Plano without even knowing it was dealing with Toyota

With Toyota set to relocate its North American headquarters to the Dallas, TX suburb of Plano following a top-secret, 100-city search, the cities that missed out can now begin asking themselves what happened during a process they apparently knew little about.
That's a particularly brutal task for Charlotte, which, according to North Carolina's Secretary of Commerce, Sharon Decker, finished second to Plano. While Toyota has been fairly open about what it was looking for in a new headquarters city - direct flights to Japan, proximity to its US production facilities, a lower cost of living, high-quality educational facilities and finding a neutral site suitable to the California, Kentucky and New York-based employees that would be relocated - it's been less open about how the finalist cities, which also included Atlanta and Denver, stacked up against each other.
The Charlotte Observer has a few ideas. Part of the problem is the distinct lack of direct flights between Charlotte and Asia. US Airways, which operates a hub at Charlotte/Douglas International Airport, doesn't fly to Asia.