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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.

2017 Audi S4 switches to turbo power, loses manual

If you dig the understated look of the 2017 Audi A4 but crave more power, then check out the latest S4. The new sport sedan sticks with a V6 but ditches the supercharger in favor of turbocharging to now produce estimated US figures of 354 horsepower and 369 pound-feet of torque. If there's one downside to the upgrade, it's that Audi only plans to offer the mill with an eight-speed Tiptronic automatic gearbox. The 2017 S4 is now quicker than before. The run to 62 miles per hour takes just 4.7 seconds, versus 4.9 seconds for the current sedan to reach 60 mph. The top speed remains at an electronically limited 155 mph, but fuel economy is claimed to be improved with a rating of 31.8 miles per gallon on the European testing cycle. All S4s come with Audi's venerable Quattro all-wheel drive, and it generally operates with a 40:60 front-rear power split. As conditions change, a maximum of 70 percent of the grunt can go to the front or 85 percent to the rear. Handling is also aided by a tweaked suspension that sits 0.9-inches lower than the A4. Beyond the different badges, the latest S4 doesn't visually advertise its prowess. LED lighting is standard, and quad exhausts rest in a new rear bumper with a subtle diffuser. The side mirror housings also get some aluminum-look trim. The interior layout echoes the A4 but with sport seats and a mix of Nappa leather and Alcantara upholstery. Audi's digital instrument cluster is optional and includes an exclusive sport screen among the three views. The new S4 goes on sale in 2016 as a 2017 model. In addition to the lack of a manual, there's no intention of offering the S4 Avant in the US. Sporty and high-tech: the new Audi S4 and S4 Avant September 15, 2015 | FRANKFURT/INGOLSTADT, Germany Audi launches the new S4 and S4 Avant at the IAA in Frankfurt am Main. The top models from the A4 series are ahead of the competition – with intelligent lightweight design, powerful engines, an extensive package of the latest technologies, and 260 kW (354 hp), 0 to 100 km/h (0 to 62 mph) in 4.7 seconds. (The all-new A4 and S4 are expected to go on sale in the U.S. market in 2016. The Avant is not planned for the U.S. market.) "At Audi, we have more than 20 years of expertise in developing our sporty S models," says Professor Dr. Ulrich Hackenberg, Member of the Audi Board of Management for Technical Development.

Mystery shoppers love Infiniti, hate Tesla

Infiniti, followed by Lexus tied with Mercedes-Benz took the top two spots for best sales experience according to mystery shoppers from the latest Pied Piper Prospect Satisfaction Index, while EV manufacturer Tesla recorded the lowest overall score. Not surprisingly, premium brands dominated the top ranks. Including the three already mentioned, luxury brands occupied seven of the top ten spots and included Audi, BMW, Porsche, and the only American brand to crack the upper echelon, Cadillac. Toyota, Volkswagen, and Nissan rounded out the first ten positions. The news for domestic automakers isn't good. Aside from Caddy, the only other star-spangled automaker to score above the industry average is Chrysler. The rest of FCA, most of GM, and all of Ford fell below the line. But Pied Piper's mystery shoppers handed Tesla the biggest walloping – the company is ten full points below the next lowest brand, Volvo, and its score of 86 is 17 below the average of 103. It's baffling, considering the company's touted direct-sales model. "Tesla leaves me scratching my head," Fred O'Hagan, Pied Piper's president and CEO, told Wards Auto. "They own all of their stores, so you would think each one would be doing the same thing. But they're not. Tesla is consistent in its inconsistencies." O'Hagan added that there's a "huge variation" in Tesla's store-to-store effectiveness, and that in some cases, shoppers found showroom workers that acted more like "museum curators," Wards Auto reports. It might be popular to call Tesla the Apple of the car world, but based on Pied Piper's work, the brand has a long way to go to emulate the uniform shopping experience of an Apple Store. The news might be bad for Tesla, but even for the brands that scored below average, there's cause for celebration. Only Tesla and Mini lost points in this year's rankings, and only Mercedes and Lincoln held steady. Every other brand, including Infiniti, which topped the index for the first time, gained at least one point. The biggest improvements belong to Porsche, Land Rover, and Mitsubishi, which all jumped five points. Pied Piper's annual Prospect Satisfaction Index uses mystery shoppers – over 6,100 this year – from across the country to assess dealers and generate rankings from over 50 individual factors. News Source: Pied Piper via WardsAuto Green Audi BMW Cadillac Chrysler Infiniti Lexus Mercedes-Benz Nissan Tesla Toyota Car Buying Car Dealers study