Auto blog

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.

Junkyard Gem: 1978 Buick Skylark Sedan

Around the time that OPEC shut off the oil taps, The General realized that it was time to sell more small cars from GM divisions not previously known for such machines. The logical candidate for this project was the Chevrolet Nova, a rear-wheel-drive compact that shared much of its chassis design with the Chevrolet Camaro and Pontiac Firebird. The Nova-based Pontiac Ventura came out in the 1971 model year, and the Buick and Oldsmobile Divisions began producing their own badge-engineered Nova siblings for 1973 (Cadillac was late to the party, but eventually created the Nova-based Seville for 1976). At first, the Buickized Nova got Apollo badges, but the better-known Skylark name was applied to these cars for the 1975 through 1979 model years. Today's Junkyard Gem is one of those Nova-based Skylarks, found in a Denver self-serve yard. From the 1964 through 1972 model years, the Skylark lived on the A-Body chassis and was sibling to the Chevrolet Chevelle/Malibu, Pontiac LeMans/Tempest/GTO, and Oldsmobile Cutlass/442. After the 1975-1979 rear-wheel-drive X-Body phase, the Skylark name then went onto the unrelated front-wheel-dive X-Body chassis developed for the Chevrolet Citation. It's a Nova, sure, but Buick made sure that it had a bit more swank than its Chevy counterpart. Checked seat fabric with big square buttons! The base engine in the '78 Skylark was the 3.8-liter Buick V6, rated at 110 horsepower. GM had invested in a new crankshaft design for this engine the year before, so it no longer had the "odd-fire" cut-down V8 crankshaft that shook the fillings out of so many drivers' teeth in earlier years. An assortment of low-compression V8s from Oldsmobile, Chevrolet, Pontiac, and Buick were available as optional equipment as well, eventually leading to the "Chevymobile" lawsuits of a few years later. The base transmission in this car was a three-speed manual (I'm not sure if you could still get a three-on-the-tree column-shift manual Skylark in 1978, but a three-on-the-floor manual was available for sure). The very last three-on-the-tree car Americans could buy was the '79 Nova and its Olds Omega/Pontiac Phoenix siblings, while the final three-on-the-floor cars were the '81 Malibu and siblings. This car has the optional three-speed automatic.

Next-gen LaCrosse, Cascada convertible coming to Buick showrooms in 2016

It's difficult to overstate how significant the post-bankruptcy years have been for General Motors' Buick brand. Arguably the most improved American automaker, Buick has rounded out its range with an excellent compact in the Verano, a well-balanced midsizer in the Regal and a segment-busting mini-CUV, with the Encore. Seeking to keep that momentum going, the next several years will see the brand address a trio of its most obvious issues. First and foremost will be a replacement for the aging LaCrosse, a vehicle whose only bit of attention since its 2009 debut was a very light refresh in 2013. According to Automotive News, we should expect the next-generation LaCrosse to arrive late next year or early in 2016, as a 2016 model. AN expects big design changes, as Buick attempts to further the LaCrosse from its popular platform-mate, the Chevrolet Impala. The changes won't be so radical, though, as to do away with its front-drive architecture, as the latest version of the Epsilon platform will underpin the next LaCrosse. The 3.6-liter V6 is likely to carry on, although a smaller, budget-minded offering is also extremely likely (we'll eat our hat if it's not the 2.0-liter, turbocharged four-cylinder from the Regal, Verano and Cadillac CTS et al.). The other issue plaguing Buick's lineup is a lack of a midsize crossover. This is particularly damning for the brand as most of its showrooms are shared with GMC, which boasts its own midsizer in the form of the Terrain. With the upcoming Envision (see here for teasers), that problem should be addressed. Like the LaCrosse, the Envision will likely be a 2016 model. It will debut and launch in China early next year, while we can expect it to arrive stateside later next year, or even early in 2016. For American consumers, both a 2.5-liter four-cylinder and the aforementioned 2.0T could see action in the Envision. Finally, while Buick can boast a pair of vehicles available with manual transmissions, it's still far from what we'd call a brand for fun driving experiences. Of course, one way of solving that problem is with a two-door convertible. Yes, it's extremely likely that the Euro-market Opel Cascada convertible will be sold in the US early in 2016. Whether it keeps the Cascada name is unclear (all in favor of Skylark, say "aye"). Regardless, adding a reasonably priced, relaxed, two-door droptop to the Buick range to fill the space left by the not-so-dearly departed Chrysler 200 Convertible seems like a no brainer.