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The next steps automakers could take after sales drop again in April

DETROIT (Reuters) - Major automakers on Tuesday posted declines in U.S. new vehicle sales for April in a sign the long boom cycle that lifted the American auto industry to record sales last year is losing steam, sending carmaker stocks down. The drop in sales versus April 2016 came on the heels of a disappointing March, which automakers had shrugged off as just a bad month. But two straight weak months has heightened Wall Street worries the cyclical industry is on a downward swing after a nearly uninterrupted boom since the Great Recession's end in 2010. Auto sales were a drag on U.S. first-quarter gross domestic product, with the economy growing at an annual rate of just 0.7 percent according to an advance estimate published by the Commerce Department last Friday. Excluding the auto sector the GDP growth rate would have been 1.2 percent. Industry consultant Autodata put the industry's seasonally adjusted annualized rate of sales at 16.88 million units for April, below the average of 17.2 million units predicted by analysts polled by Reuters. General Motors Co shares fell 2.9 percent while Ford Motor Co slid 4.3 percent and Fiat Chrysler Automobiles NV's U.S.-traded shares tumbled 4.2 percent. The U.S. auto industry faces multiple challenges. Sales are slipping and vehicle inventory levels have risen even as carmakers have hiked discounts to lure customers. A flood of used vehicles from the boom cycle are increasingly competing with new cars. The question for automakers: How much and for how long to curtail production this summer, which will result in worker layoffs? To bring down stocks of unsold vehicles, the Detroit automakers need to cut production, and offer more discounts without creating "an incentives war," said Mark Wakefield, head of the North American automotive practice for AlixPartners in Southfield, Michigan. "We see multiple weeks (of production) being taken out on the car side," he said, "and some softness on the truck side." Rival automakers will be watching each other to see if one is cutting prices to gain market share from another, he said, instead of just clearing inventory. INVESTORS DIGEST BAD NEWS Just last week GM reported a record first-quarter profit, but that had almost zero impact on the automaker's stock. The iconic carmaker, whose own interest was once conflated with that of America's, has slipped behind luxury carmaker Tesla Inc in terms of valuation.

How Ford's light lab keeps the sun shining on the new Mustang just right [w/video]

Anyone who's bought one of those old school metal shift knobs knows they're really cool until they sit in a parking lot in the sun for a few hours. Then they're not cool at all. Likewise, features such as the aluminum dash on the 2015 Ford Mustang can be all kinds of neat right up until the sun hits it just the right way and sends shards of blinding light through the cabin. The Ford Visual Performance and Evaluation Lab is where engineers figure out how to make sure that doesn't happen.
Cars like said Mustang are parked inside the 30-foot reflecting dome under 6,000 watts of lights that can mimic the sun at any time of day and in any weather condition. Engineers can then spend cold, overcast days inside, testing for interior legibility, glare and reflections on every interior and exterior surface as if it were bright and sunny. They can also learn how a car's sheetmetal and colors will look out of doors, all year round.
Ford showed off the lighting lab without the music and interviews three years ago when the Explorer was being prepared. You can watch it at work again in the video below, and read about it in the press release below that.

8 car technologies designed to keep you safe

Technologies are always advancing forward, especially in your vehicle. As more safety technologies are being introduced into the market, it can be hard to keep track of everything. So here are 8 technologies designed to keep you safe on the road. Want more coverage? Head over to http://bit.ly/2CcOngW Ford Kia Mercedes-Benz Subaru Toyota Volkswagen Volvo Autoblog Minute Videos Original Video FCA automatic emergency braking