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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.

The skinny on Delphi's autonomous road trip across the United States [w/videos]

Rolling out of an S-shaped curve along Interstate 95, just past Philadelphia International Airport, the final obstacle between the autonomous car and its place in history appeared on the horizon. So far, the ordinary-looking SUV had traversed the United States without incident. It had gone through tunnels and under overpasses. It circled roundabouts and stopped for traffic lights. Now, on the last day of a scheduled nine-day journey, it was poised to become the first autonomous car ever to complete a coast-to-coast road trip. First, it needed to contend with the Girard Point Bridge. Riding in a rear seat, "I saw that bridge coming, and I thought, 'Oh my gosh, this is going to be a grab-the-wheel moment," said Kathy Winter, vice president of software at Delphi Automotive. The car, an unassuming Audi SQ5 nicknamed Roadrunner, had been well-tested. Back in January, a few inebriated pedestrians fell flat in front of the car during a demonstration in Las Vegas. It was the quintessential worst-case scenario, and the car admirably hit the brakes. More than drunken louts, bridges present a sophisticated challenge for the six radar sensors that feed data to the car's internal processors. Instead of sensing solid objects, radar sensors can read the alternating bursts of steel beams and empty space as conflicting information. "They're a radar engineer's worst nightmare," said Jeff Owens, Delphi's chief technology officer. Girard Point Bridge, a blue skeleton of girded steel that spans the Schuylkill River, might be a bigger challenge than most. Traveling across the lower level of its double decks, the autonomous car's radar sensors had to discern between two full sets of trusses. Cross the Schuylkill, and Delphi's engineers felt confident they'd reach their destination: the New York Auto Show. For now, the sternest test of the trip lay directly in front of them. A Data-Mining Adventure Until that point, the toughest part of the journey had been finding an open gas station in El Paso, TX. Trust in the technology had already been established. The main reason Delphi set out on the cross-country venture with a team of six certified drivers and two support vehicles was to capture reams of data. What better way to do that than dusting off the classic American road trip and dragging it into the 21st century? They did exactly that, capturing three terabytes worth of data across 3,400 miles and 15 states.

Audi reveals even more efficient 2015 R18 E-Tron Quattro

We've seen two of this year's LMP1 manufacturer challengers – Porsche's updated 919 Hybrid and Nissan's GT-R LM Nismo. Audi has finished cooking up the successor to its Le Mans champion and unveiled the fifth-generation R18 E-Tron Quattro, even better than before. The bodywork monocoque is carried over, but the body around it has been reshaped to improve airflow from front to rear with a new hood, front fenders and wheel arches, and radiator configuration. The engine cover behind the cockpit is shrunk more closely around the engine, and there are new headlights. The hybrid system can expend double the energy per lap this year, putting Audi in the four-megajoule class under the energy-use regulations. That extra energy will come from 17-percent more capacity built into the flywheel storage system and an electric motor good for 272 horsepower. The revisions haven't increased the weight of the car, pegged to the minimum allowed at 870 kilograms. They have, however, forced changes to the TDI engine, which has to use 2.5-percent less fuel per lap to offset the increased hybrid output. The 558-hp V6 has been optimized such that it "managed to more than compensate for the loss" of fuel allowed, and Audi expects "significantly" lower lap times this year and less fuel used. We're still waiting to see what Toyota has done to its World Endurance Championship-winning racer, but we're already looking forward to this year's Le Mans. It's going to be cracking. You'll find a press release below the videos with more info on the Audi. Related Video: New Audi R18 e-tron quattro even more efficient - Aerodynamics, hybrid drive and many other details improved - Efficient TDI engine consumes even less fuel than before - Technologies from Le Mans winning cars now in production at Audi Ingolstadt, March 21, 2015 – Audi is starting the 2015 season with a thoroughly revised R18 e-tron quattro. In the FIA World Endurance Championship (WEC) and in the Le Mans 24 Hours as the season's pinnacle event, Audi is going to compete with a hybrid sports car in the 4-megajoule class. A twofold quantity of hybrid energy, fundamentally revised aerodynamics, the next step in lightweight design and a lot of detailed work characterize the fifth generation of the Audi R18. "The possibilities of the revolutionary regulations that have been in effect for LMP sports cars since 2014 are far from having been fully used.