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U.S. auto sales fall in July, as Detroit dials back on inventory, rental sales

DETROIT — U.S. carmakers said on Tuesday they continued to slash low-margin sales to daily rental fleets in July as General Motors, Ford and Fiat Chrysler Automobiles struggled to curb a slide in retail sales. July is on track to be the fifth straight month in which the annual pace of car and light truck sales declined from the same month a year ago, in part because of fewer fleet sales, analysts and industry executives said. July 2016 sales hit a strong 17.9-million-vehicle pace. GM said the seasonally adjusted annual sales rate fell to an estimated 16.9 million vehicles in July. At midmorning on Tuesday, GM shares were down 3.4 percent at $34.77, Ford was down 2.8 percent at $10.91, and Fiat Chrysler shares were down 0.3 percent at $12.05 in New York. GM sales dropped 15 percent from a year ago to 226,107 vehicles, as the company cut rental fleet sales more than 80 percent. The automaker said inventories of unsold vehicles at month's end were 104 days, down from 105 days at the end of June. GM has promised investors to reduce inventories to 70 days by year-end. Ford said its July sales dipped 7.5 percent to 200,212 vehicles, as it cut fleet sales more than 26 percent. Inventories fell to 77 days from 79 the previous month. Fiat Chrysler said sales dropped 10 percent to 161,477, as it also cut back sales to daily rental fleets. Among the top Japanese companies, only Toyota reported a year-to-year gain, with sales up 4 percent to 222,057 — just 4,000 units behind GM. Honda sales were down 1 percent to 150,980 — its first-quarter sales continuing to decline in North America but seeing a big increase in China. And Nissan sales fell 3 percent to 128,295. GM, Ford and Fiat Chrysler have cautioned that second-half financial results likely will be lower than first-half results, in part reflecting production cuts in North America and pricing pressures. The automakers this year have been deliberately dialing back sales to rental-car companies, which often generate little to no profit, while struggling to keep retail sales from sagging further, according to industry analysts. Industry consultant LMC cut its full-year forecast for new vehicle sales to 17 million vehicles. Automakers sold a record 17.55 million vehicles in the United States in 2016.

Ford Explorer is America's new favorite police car

There is a new vehicle that you should keep an eye out for when you're going a little too fast down the Interstate. Ford's Explorer-based Police Interceptor Utility was the bestselling new law enforcement model in the country last year, and signs show that won't be changing anytime soon.
Ford sold 14,086 Interceptor Utilities in 2013, up 140% from the year before, and 10,897 Interceptor Sedans, up 31%, according to USA Today. Overall, the brand's police sales were up 48 percent, and they were enough to boost the company's law enforcement vehicle market share by 9 points to nearly 50 percent.
The success comes just a few years after it made the decision to finally retire the long-serving Crown Victoria-based cruiser for two more modern vehicles. "We had to reinvent the category," said Chris Terry of Ford Communications to Autoblog. The automaker had to convince police departments that a unibody chassis without a V8 could perform better than a model that had been a law enforcement staple for years.

Facelifted Ford Focus caught testing in the cold

It's that time in the life of the Ford Focus to get a little work done - a nip-tuck here, some Botox there. Yes, Ford is testing a facelifted version of its global C-segment entry, which first hit markets in Europe and North America in May 2011.
Like the touchup on the Fiesta, expect Ford's gaping grille to make its first appearance on the Focus. Our spy photographers point out that this is likely to be a more comprehensive makeover than previous spy shots suggested, based on the additional camouflage seen here on the front and rear ends of this five-door model. New head and taillights are also likely in order, as are changes to the front and rear fascia.
The interior was also snapped and features a cleaner design with a larger central display. Other than that, it looks like some buttons have been changed, making us think most of the Focus' updates are limited to the exterior.