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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.

GM extending warranties on Cadillac CTS-V and Chevy Camaro ZL1 for supercharger issue

Okay General Motors, we've sat by and watched you recall the compact cars, crossovers and pickup trucks, and aside from reporting on it, we've been fairly quiet. This, though, this will not do. We can almost tolerate the recalls on the bread-and-butter cars, but leave the performance vehicles alone.
According to a report from The Car Connection, GM has discovered a problem with the superchargers of the 6.2-liter V8s found in the Chevrolet Camaro ZL1 and the Cadillac CTS-V. Apparently, the issue rests around the internal bearing shaft grease, which can become contaminated (we aren't sure with what). If left unchecked, it'll first lead to a rattle at idle, which goes away under slight throttle. The real warning stage is when a high-pitched squeal develops, signaling that the bearing shaft has failed. Naturally, severe engine damage is the next step (although it's possible that the engine will also just refuse to turnover, although neither case is desirable).
According to TCC, GM will replace the superchargers on vehicles that have exhibited symptoms of bearing shaft failure free of charge. It will also, allegedly, be extending the warranty on all supercharged ZL1s and CTS-Vs to 10 years or 120,000 miles (whichever comes first), from the date of purchase. Officially, only 2009 to 2013 CTS-Vs and 2012 to 2013 ZL1s are suffering from this issue.

Cadillac Offering $100 For Test Drives

The video meant to be presented here is no longer available. Sorry for the inconvenience. Cadillac is hoping to jumpstart sluggish sales with a generous offer to customers to get them into dealerships and perhaps behind the wheel of their very own Caddy. Cadillac is giving a $100 gift card to any insured car owners age 21 or older who drive non-GM vehicles built after 2004, WDIV reported. If you buy a Cadillac, the automaker is offering an additional $1,500 plus other incentives. Such sales promotions have worked well in the past, analysts told The Detroit News. Cadillac had strong sales last year, but sales are down 7.3 percent this quarter compared to the first quarter last year. Cadillac will run the promotion until the end of the month. Related Gallery AOL Autos Test Drive: 2014 Cadillac ELR Cadillac Car Buying Car Dealers