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Ford CEO told Trump 1 million jobs at stake because of fuel economy regs

Bloomberg is reporting that Mark Fields, Ford's CEO, pushed President Donald Trump for market-driven national fuel economy standards, and that up to a million jobs could be at stake if those national regulations didn't take consumer expectations into account. Fields was reporting on his conversation with Trump in remarks made at the National Automobile Dealers Association in New Orleans, Bloomberg reports. The report also states that he and fellow CEOs Mary Barra of GM and Sergio Marchionne of FCA aren't seeking to eliminate fuel economy standards altogether, but rather to make them more flexible. Bloomberg reports that Fields didn't cite the studies he was referring to in support of his job loss figures, so we can't independently verify Fields' math at this time. But his push to stop selling cars consumers don't want – that is to say, more hybrids and EVs than consumer demand supports right now – is clear. We've already reported on that. To level an educated guess at what will happen next, Trump seems likely to reduce the stringent 2025 fuel economy targets, perhaps freezing them at current levels. The automakers are already invested in producing vehicles that meet current standards, and they also have to think about foreign markets like Europe that aren't likely to relax standards below current levels. If you consider economies of scale, automakers are likely to ask for federal standards that match global standards for their largest markets as closely as possible. We'll see if Trump buys Fields' math, but Ford isn't hedging its bets. Backing out of the Mexican assembly plant cost the company $200 million – not a huge sum compared to the total value of Ford, a massive company which had its second best year ever, but still an important gesture to Trump about Ford's priorities. Related Video: News Source: BloombergImage Credit: Bloomberg via Getty Images Government/Legal Green Fiat Ford GM Sergio Marchionne Mary Barra Mark Fields

China takes lead as GM's No. 1 market

It's happened. General Motors' biggest vehicle market - at least in terms of new model sales - is China. According to TheDetroitBureau.com, GM and its various Chinese joint venture operations enjoyed a 10.6-percent sales increase in the first half of 2013, selling almost 1.6 million units in the market. That puts GM China about 200,000 units ahead of its US sales totals over the same period - this, despite indicators that the communist nation's economy is losing momentum.
TDB notes that like GM, rival Ford has also enjoyed a robust 2013 in China thus far, with its sales up a whopping 47 percent to 407,721 units sold - 75,254 of them in June alone. Between the two US automakers, passenger car sales for the first half of 2013 are up around 14 percent, well ahead of the rest of the industry's 10-percent growth estimates for the market. Some of the sales growth may come as a result of an overall anti-Japan sentiment in China, though the American brands have long outsold their Japanese counterparts in the country.
By The General's own predictions, China will only continue to grow in sales importance. The company has designs on selling over five million cars a year in the market before the end of the decade, a total that figures to dramatically widen the gap versus its US totals - even if America's auto market makes a full recovery to the the salad days of over 17-million units a year.

Trucks, SUVs — and Camry — shine in mixed U.S. January vehicle sales

DETROIT — Automakers posted mixed U.S. new vehicle sales data for January, with American consumers continuing to abandon passenger cars for the larger pickup trucks, SUVs and crossover models that manufacturers also love because they are far more profitable. Total industry auto sales for the month rose 1 percent versus January 2016. According to Autodata Corp, which tracks industry sales, the seasonally adjusted annualized rate (SAAR) of U.S. car and light truck sales in January fell to 17.12 million units from 17.44 million a year earlier. Analysts polled by Reuters had expected a January SAAR of 17.2 million units. U.S. auto industry sales fell 2 percent in 2017 to 17.23 million vehicles after hitting a record high in 2016 and are expected to drop further in 2018 despite a solid economy. Interest rates are rising and around 4 million late-model used cars will return to dealer lots this year to compete with more expensive new ones. Automakers have used consumer discounts to boost sales, a growing concern for observers who say this undermines resale values and profits. Discounts declined in January, but remained above 10 percent of manufacturers' recommended prices. ""I think the industry has accepted that (sales) volumes will fall somewhat in 2018 ... and I don't think the industry is going to go over the cliff with insane incentives," Mike Jackson, chief executive officer of AutoNation Inc, told Reuters after his company, the largest U.S. auto retail chain, posted a higher quarterly net profit. Mark Wakefield, head of the North American automotive practice for consultancy AlixPartners, had a gloomier perspective. The industry's less-than-stellar sales performance for January showed "we are now past the peak," he said. "Automakers are now selling the deal instead of the vehicle," he said. "That's a tough spot to be in because that treadmill is hard to get off once you're on it." General Motors January sales rose 1.3 percent, driven by a 16 percent rise in fleet sales. Sales to consumers fell 2.4 percent. GM posted strong gains for models such as the Silverado pickup truck and Equinox crossover model, while its passenger cars continued to struggle. Ford The Blue Oval posted a 6.6 percent sales decline for January, with retail sales down 4.3 percent. Sales of Ford's F-Series pickup trucks - America's best-selling vehicle brand for decades — rose 1.6 percent. Passenger cars were down more than 23 percent.