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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.

Cadillac can't keep up with Escalade demand, can't move its sedans

No matter how much Cadillac revitalizes its lineup and its image, it seems that all consumers want is the Escalade. In fact, Automotive News reports that General Motors can't keep up with demand for the fullsize luxury SUV, despite sticker prices that start at over $70,000 and approach six figures at the top end of the spectrum. Contrast that with sedans like the ATS and CTS, which are far cheaper but which Cadillac hasn't been able to move fast enough to keep up with production, prompting both the manufacturer and dealers to offer substantial incentives to keep them from piling up. Cadillac had been resisting a price cut of the ATS or CTS, lest it hurt resale values – itself a factor that could explain consumers' reluctance to buy them in the first place – but been offering subsidized leases, discounted financing, rebates and cheaper options. Combined with incentives from individual dealers, according to AN, buyers can be looking at five-figure discounts on buying a new Cadillac sedan. And now, finally, it seems the CTS will indeed get a little bit off its bottom line. Yet GM has been producing the ATS and CTS at rates that their sales can't keep up with. The automaker was forced to idle the plant in Lansing, MI, where it assembles the ATS and CTS for six weeks starting this past December. And since it reopened late in January, it's been reduced to a single shift as dealers try to move the metal they've already got. Meanwhile the plant in Arlington, TX, that produces the Escalade and its Chevy and GMC siblings has been running on overtime, with three shifts throughout the week and even into the weekend to keep up with demand. Profitable as it's been for Cadillac and GM, though, the Escalade does not represent the future of where it wants to take the brand - separating the Escalade as almost a brand unto itself that's been left out of the company's new naming scheme. If only it could make its sedans as successful as its fullsize SUVs, it'll be all set.

Cadillac ELR regen on demand brakes win 2014 Green Car Technology award

Just like the Oscars, Green Car Journal decided a few years ago to up the number of nominees for its annual award. For the annual "Green Car of the Year" award, given out at the Los Angeles Auto Show each year, there are five finalists. For the "Green Car Technology" award, there are a fantastic ten. At the 2014 Washington Auto Show today, the Cadillac ELR and its regen on demand brakes managed to beat out the nine other finalists to claim the second annual "Green Car Technology" award. What is the purpose of the "Green Car Technology" award? Green Car Journal says it wants to reward "technologies that enable significantly improved environmental performance in vehicles today," which is why only fuel-saving technologies that were "in use on American highways during the award year" can be considered. The Caddy's brakes beat out the Acura Sport Hybrid SH-AWD powertrain, the Audi 3.0-liter turbodiesel engine, the BMW carbon-fiber passenger shell from the i3, the 1.0-liter EcoBoost engine used by Ford, the plug-in hybrid powertrain in the Honda Accord, Hyundai's hydrogen fuel cell technology, the regenerative brakes in the Mazda i-ELOOP, the plug-in hybrid powertrain used in some Porsche models and, finally, the Ram 3.0-Liter EcoDiesel engine. Last year, Green Car Journal gave Mazda's Skyactiv technology the inaugural Green Car Technology award. Cadillac ELR Regen On Demand Wins 2014 Green Car Technology Award Green Car Journal Lauds Cadillac's Electric Car Tech at Washington Auto Show WASHINGTON, Jan. 22, 2014 /PRNewswire/ -- Cadillac's innovative Regen on Demand technology has taken top honors as the winner of Green Car Journal's 2014 Green Car Technology Award™. The prestigious award was presented at a Green Car Journal press conference during the Washington Auto Show's second Policy Day. "Cadillac has cleverly evolved a common electric-drive efficiency system into an intriguing feature that adds a new dimension to the driving experience," said Ron Cogan, editor and publisher of Green Car Journal and CarsOfChange.com. "Ever-increasing efficiency is crucial to our driving future, yet efficiency itself is not an attraction for a great many car buyers.