Factory Certified Warranty~leather~heated Seats~moonroof~sync~non-smoker~40pics on 2040-cars

Auto blog

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.

2015 Ford F-Series Super Duty Power Stroke

What weighs 30,000 pounds? Big Ben's Westminster bell. A navy ship anchor. Or as we found out during our first drive program for the 2015 Ford F-Series Super Duty, seven pallets of cinder blocks loaded onto a dual-axle gooseneck trailer. The test was part of a raft of towing demonstrations that showcased the new Super Duty's impressive tug capacity, which maxes out at 32,100 pounds. That's 1,200 more than its nearest rival, the Ram 3500, when equipped with its upgraded 6.7-liter Power Stroke diesel V8. Such is the heavy-duty pickup truck business, a diesel-fueled game of one-upmanship with only three players: Ford, Chevrolet/GMC and Ram. And in this game, the one with the most torque wins.
Until 2014, Ford was the one to beat, with its 6.7-liter Power Stroke diesel bringing 400 hp and a massive 800 lb-ft of torque to the table. Then last year, Ram did exactly that, serving Ford with a beefed-up Cummins turbodiesel inline-six in its freshened Ram Heavy Duty truck line with 385 hp and 850 lb-ft of torque, enabling it to tow up to 30,000 pounds. But Ford claims it had designed its engine to be relatively easy to upgrade when the time called for it, so for 2015, Ford bolted a larger turbo to the Power Stroke, bringing output to an insane 440 hp and 860 lb-ft of twist, all without reducing fuel efficiency. Maximum tow capacity rises from 24,700 lbs to an incredible 31,200 lbs for the F-450 dually.
As for GM's HDs? They lag behind the lot with their 6.6-liter Duramax V-8, producing 397 hp and 765 lb-ft of torque. Yeah, you know things are serious when the trucks with 765 lb-ft are the knock-kneed wimps of the lot.

Ford, GM still doing new business with Takata amidst airbag crisis

Lengthy vehicle development times make it difficult for automakers to cut and run from the supplier. You might expect automakers to be fleeing any connection with beleaguered supplier Takata in the wake of the company's exploding airbag inflator crisis. After all, with a Senate hearing, pending lawsuit, plummeting stock value and demand for a national recall, the tier-one supplier isn't at its strongest right now. However, years of cooperation mean that automakers are standing by Takata, and necessity may be playing a role, as well. About 39 percent of Takata's business comes from airbags, and seatbelts make up another significant chunk of the operation too, says Bloomberg. The long-term relationships and lengthy vehicle development times make it difficult for automakers to cut and run from the supplier. "Takata has so much product breadth that I don't really see that they could just disappear," said AutoPacific analyst Dave Sullivan to Bloomberg. For example, Takata helped develop the unique front center airbag with General Motors in models like the Chevrolet Traverse and Buick Enclave. Outside of safety tech, it is also a partner with Ford on the adaptive steering system available on the upcoming 2015 Edge. These long-lasting partnerships make change difficult now that there's a problem. According to Reuters, automakers claim it would take a year or longer to set up with a different supplier for replacement airbag inflators. Switching to a completely different part for the repairs might not be a viable option either, because of the engineering time needed. BMW is taking action, though. According to Reuters, the Bavarian brand is working with the supplier to move inflator production from Monclova, Mexico, to a Takata factory in Freiburg, Germany. The Mexican plant may be the source of some of the faulty parts. News Source: Bloomberg, ReutersImage Credit: Jens Meyer / AP Photo BMW Ford GM Safety Takata airbag recall