1984 Cadillac Fleetwood Brougham Sedan 4-door 4.1l on 2040-cars

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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 slashes prices in China as sales falter

Buying a vehicle from General Motors' stable of brands might be a lot cheaper in the near future – at least for customers in China. The effort comes as GM hopes to keep sales there growing, and the decision alludes to yet another sign that the Asian country no longer has the booming auto market of past years. GM and its Chinese joint venture partner SAIC are slashing prices by as much as the equivalent to $8,700 on 40 models from Buick, Chevrolet, and Cadillac, according to The Detroit News. Across all of automaker's nameplates, the overall sales dipped in China in April by 0.4 percent to 258,484 vehicles. Among the drops, Buick was down 8.5 percent, and Chevy shrunk 5.6 percent. Caddy's numbers increased 4.6 percent for the month, though. Buick remains a popular brand in the minds of Chinese consumers, but according to The Detroit News domestic automakers there are starting to eat into the dominance of foreign companies in the market. The country remains important for GM, though. Late last year, it outlined a future strategy that included China as a major pillar, including a $14 billion investment to build five new factories and boost sales. News Source: The Detroit NewsImage Credit: Alexander F. Yuan / AP Photo Buick Cadillac Chevrolet GM Car Buying Car Dealers saic

2021 Cadillac Escalade's EPA highway fuel economy is worse than before

EPA fuel economy estimates for the 2021 Cadillac Escalade are out, and the news is mostly not good. The redesigned SUV sees slim to no improvement in the Feds' city ratings, and its highway numbers are considerably worse than before. These are estimates for the standard 6.2-liter V8. Figures for the no-cost-optional 3.0-liter turbodiesel six have not been released yet. Specifically, the rear-wheel-drive 2021 Escalade has estimates of 15 mpg city, 20 mpg highway, and 17 mpg combined. Compared to the outgoing 2020 version, powered by the same 6.2L V8, those numbers represent a 1 mpg improvement in city (the lone piece of good news) but are 3 mpg worse on the highway. With all-wheel drive, the 2021 Escalade can't even get out of the teens, with EPA ratings of 14 mpg city, 19 mpg highway, and 16 mpg combined. That's the same city rating as before and a 2 mpg decline versus the 2020 model's highway rating. For further comparison, cross-town rival Lincoln's Navigator with its 3.5-liter turbo V6 manages 16 mpg city and 22 mpg highway (RWD) and 16/21 with AWD. No one expects an ultra-large, body-on-frame, three-row SUV to achieve Prius-like levels of fuel efficiency, but it's pretty rare these days to see such backsliding with a fresh redesign. Here's hoping the diesel variant will have a happier story to tell. Related Video: