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Trucks, SUVs drive U.S. October new vehicle sales

DETROIT — Major automakers posted mixed U.S. new vehicle sales in October on Wednesday, though America's love affair with high-margin pickup trucks and SUVs remained in full bloom as larger, pricier vehicles fared better than passenger cars. Auto industry publication WardsAuto put the seasonally-adjusted annualized rate (SAAR) for light vehicle sales in October at a robust level of 18 million units. But after a long boom cycle, carmakers are still ill-prepared for the slight decline in sales anticipated for full-year 2017 and have taken too few steps to trim production, said Doug Mehl, a partner in consultancy A.T. Kearney's automotive practice. "When you make a new vehicle, you have volume assumptions tagged to it, and who wants to be the guy who says, 'I'm going to make less of this really cool model'?" Mehl said. "But eventually the market is the reality, and it's going to force companies one way or other here." General Motors GM reported a sales drop of 2.2 percent for the month, with consumer sales down 6.6 percent. But sales of high-margin pickup trucks, sport utility vehicles and crossovers all rose. GM also cut its inventory of unsold vehicles — a source of concern for the market — slightly. The automaker has worked to reduce its volume of excess inventory, including through significant production shutdowns in the third quarter. GM had said its inventory would rise in October. "We are heading into the fourth quarter with good momentum, thanks to a strong U.S. economy and very strong pickup and crossover sales," said Kurt McNeil, GM vice president for U.S. sales operations. GM slightly reduced consumer discounts as a percentage of average transaction prices to 13.5 percent, from 13.7 percent in the third quarter. Industry experts believe consumer discounts above 10 percent of the average transaction price are unhealthy as they erode resale values and are unsustainable in the long term. Consultants J.D. Power and LMC said last week that based on preliminary October sales numbers, discounts have exceeded 10 percent in 15 of the past 16 months. Ford The U.S. auto industry posted record sales of 17.55 million vehicles in 2016. New sales received a strong boost in September as consumers replaced vehicles damaged in southeast Texas by Hurricane Harvey the previous month. Full-year 2017 sales are expected to be slightly lower than 2016.

Ford says 70% of its models to get stop-start by 2017

Ford is following up on a report we posted a few weeks back that the Blue Oval would be adding stop-start technology to its entire model range. Now, the Dearborn-based automaker has announced that the fuel-saving feature would be available on 70 percent of the company's range by 2017.
Ford claims the technology will improve fuel economy by around 3.5 percent, although its actual effect will vary based on how the owner drives - apparently up to a 10-percent improvement is possible for those who sit in heavy traffic (Los Angelenos, this means you). The latest recipient of the technology is the updated 2014 Ford Fiesta with the company's three-cylinder EcoBoost powerplant.
Part of the reasoning for the new addition has to do with cost. Ford claims the tech is affordable and easy to implement. "Simply put, Auto Start-Stop helps customers use less fuel, which is an important component of Ford's Blueprint for Sustainability," Ford's global powertrain vice president, Bob Fascetti, said.

Ford Mondeo Hybrid could beat unloved diesels in Europe

Predicting changes in the European auto market isn't easy, and Ford is hedging its bets there with the introduction of the Mondeo Hybrid. The Blue Oval has no expectation of the electrified version of the sedan being a rollicking sales success, but the model is a fuel-efficient alternative in case the recent backlash against diesel turns into an outright ban somewhere. This is the first time Ford is selling a hybrid version of the Mondeo (a cousin to the Fusion in the US) in Europe. The vehicle pairs a 2.0-liter Atkinson cycle four-cylinder with a 1.4-kWh battery pack to make a total of 185 horsepower and emit 99 grams per kilometer of CO2. The Blue Oval expects to sell around 100,000 units of all versions of the sedan annually there, according to Automotive News Europe. However, fewer than 5,000 of those are predicted to be the gas-electric model. "Legislation around Europe is so different it's very difficult to predict," Roelant de Waard, Ford of Europe sales boss, said to ANE. "If you're betting only on one horse you might be lucky, but you also may be very unlucky." Ford is probably smart to have alternatives ready, and it also already offers the Focus Electric and hybrid C-Max there. Governments in Europe are rapidly turning against diesel, especially in France. The country considered offering buyers 10,000 euros ($11,300) if they trade in an old oil-burner on a new electric vehicle, and the prime minister calls backing the fuel for so long a mistake. The UK's Labour Party is making similar declarations. News Source: Automotive News Europe - sub. req.Image Credit: Ford Government/Legal Green Ford Emissions Green Driving Diesel Vehicles Hybrid Sedan