Ford: Other on 2040-cars

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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.

First 1K next-gen Mustangs to carry 2014 1/2 model year?

A new report from Mustangs Daily, citing insider sources at Ford, tells us that the Blue Oval will produce 1,000 next-generation Mustangs with the model year designation of 2014 ½, to celebrate the 50th anniversary of the storied marque. The commemorative half-year designation is a rumor that's been swirling in Mustang forums for quite some time now, and seems more plausible than ever with this most recent report. Certainly it's not far-fetched to believe that Ford will want to make a big deal of the golden anniversary for its most-loved model.
The story (compiled by Drew Phillips, who runs the aforementioned Mustang site when he's not directing the photography on these pages) goes on to say that the limited-run cars will be the first built on the new Mustang platform internally known as S550 (and spied testing in the attached gallery). Each car is said to carry a "special" VIN and build number, though no performance upgrades versus the 2015 cars to follow are in the works. A collector's dream then, rather than a weekend racer's.

Focus ST Tuner, Traffic Deaths, Audi EV SUV | Autoblog Mintue

Autoblog senior editor Greg Migliore gives the highlights from the week in automotive news.