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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.

Audi fires head of R&D, Wolfgang D"urheimer

According to Car and Driver, citing a report in Germany's Der Spiegel magazine, Audi has fired Wolfgang Dürheimer, the brand's head of research and development.
Dürheimer had originally signed on as Audi's R&D boss in September 2012. Prior to that, he had served as the head for both Bentley and Bugatti, and was formerly the development chief at Porsche (where he is credited with helping get the original Cayenne into production, a move that ushered a new era of profitability for the company). Dürheimer moved to Audi following a management shakeup within the Volkswagen Group in mid-2012.
During his time at Bentley, Dürheimer spearheaded the brand's efforts to launch an SUV. But at Audi, he reportedly quickly put a stop to costly projects such as the R8 E-Tron and the rotary range-extender engine for the A1 E-Tron. Furthermore, Car and Driver reports that Dürheimer shuffled the reporting structure within the brand's design department, and that VW Group CEO Martin Winterkorn had apparently disagreed with him several times on the styling direction for the brand.

Audi rules out R8 PHEV, will build E-Tron to order

The question of whether Audi will morph the next-gen R8 (pictured above, in testing) into a plug-in-hybrid challenger for the BMW i8 may have been answered. CarAdvice, in Australia, is claiming that any plans for a PHV 2016 R8 have been shelved, and that Audi will go ahead with gas-powered or all-electric models, only.
Even then, the electric R8 E-tron (if it ends up being called that) would be built-to-order, and in much smaller quantities than the gas-powered model.
"In the next generation we will have an electric car on behalf of customers' needs, which is only available [upon special order]," Audi product manager Marie Suzanne Ernst told CA. "So it's not a make of series production, but if a customer wants to have it, he can order it."