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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.

2016 Ford Taurus to ride atop reworked Fusion platform

Generally, cars get bigger and heavier as they get older. That's why it looks so ridiculous when you park a classic Mini next to a modern version. The same can be said of the Corvette, the BMW 3 Series, Porsche 911 and, of course, the Ford Taurus. In the Taurus' case, though, that size has become a liability, particularly because the big brute isn't nearly as sizable on the inside as it is on the out.
For 2016, Ford is aiming to rectify that. According to Edmunds, the 2016 Taurus will ride on a stretched and widened Ford Fusion platform. Ford is expecting this move to go a long way in trimming the Taurus' ample body fat.
"The problem with today's Taurus is that it is overweight and even the high performance SHO is not really competitive," said a source that spoke to Edmunds on condition of anonymity. The 365-horsepower SHO variant, "actually weighs about as much as the stretched Audi A8 L. Of course, Audi uses an extensive amount of aluminum, but it is a much bigger car."

Ford Focus refresh shots leak ahead of Geneva

In case you haven't been paying attention, Ford has been gradually redesigning its lineup to sport a familiar face. The Aston Martin-inspired grille shape debuted on the Fusion and was soon applied to the Fiesta. Even the front end of the new Mustang takes its cues from the same, and we're sure other models will soon be made-over to fall in line. The next on the docket? The Focus.
Set to be unveiled in little over a week at the Geneva Motor Show, the revised Focus has leaked out a tad early, revealing a mild facelift that bears that same trapezoidal grille with horizontal slats. Along with the new grille, the headlights, lower fascia and hood appear to have been reshaped. Around back there appears to be a new rear bumper and taillights, but otherwise the shape remains largely the same as the current model.
Expect the updates to be applied to all bodystyles offered around the world, including the hatchback, wagon and sedan. The engine lineup is expected to carry over largely unchanged, though the plug-in hybrid powertrain from the C-Max Energi could port over to the revised Focus. Plus Ford seems to have taken the opportunity to spruce things up in the cabin some. Check it out in the image gallery above and watch this space for the official announcement as we pack our bags for Switzerland.