2012 Gmc Terrain Slt-1 on 2040-cars

Auto blog

Mixed sales results, but automaker stocks rise on need for cars in Houston

DETROIT — The Big Three Detroit automakers on Friday reported better-than-expected August sales and issued optimistic outlooks for demand as residents of the Houston area replace flood-damaged cars and trucks after Hurricane Harvey, sending their stocks higher. General Motors, Ford and Fiat Chrysler posted mixed August U.S. sales, with GM up 7.5 percent and Ford and Fiat Chrysler down. Japanese automaker Toyota improved sales by nearly 7 percent, while Honda fell 2.4 percent. Still, analysts focused on the potential for Detroit automakers to cut inventories and stabilize used vehicle prices as residents of Houston, the fourth largest city in the United States, are forced to replace tens of thousands, perhaps hundreds of thousands, of vehicles after the devastation from Hurricane Harvey. Mark LaNeve, Ford's U.S. sales chief, told analysts on Friday that following Hurricane Katrina in 2005 "we saw a very dramatic snapback" in demand. That said, Ford sales fell 2.1 percent in August. It sold 209,897 vehicles in the United States, compared with 214,482 a year earlier. Sales were down 1.9 percent in the Ford division and off 5.8 percent at Lincoln. Demand was down for cars, crossovers and SUVs. It was not clear how many vehicles in the Houston area will be scrapped, LaNeve said, saying he had seen estimates ranging from 200,000 to 400,000 to 1 million. Ford's Houston dealers may have lost fewer than 5,000 vehicles in inventory, he said. Ford is the No. 1 automaker in the Houston market, with 18 percent share, according to IHS Markit. The company plans to ship used vehicles to Houston dealers and has "every indication we would have to add some production" of new vehicles to meet demand, LaNeve said. Investor concerns about inventories of unsold vehicles and falling used car prices have weighed on Detroit automakers' shares most of this year. Now, automakers can anticipate a jolt of demand from a big market that is a stronghold for Detroit brand trucks and SUVs. "It's got to be a positive for the industry," LaNeve said. Investors appeared to agree. GM shares rose as much as 3.3 percent to their highest since early March. Ford increased 2.8 percent at $11.34, and Fiat Chrysler's U.S.-traded shares were up 5.2 percent $15.91, hitting their highest in more than five years. GM reported a 7.5 percent increase in U.S. auto sales in August, helped by robust sales of crossovers across its four brands.

Disabled man realizes dream of driving with converted pickup truck

A man with a devastating illness is mobile once again thanks to a heavily modified pick up truck. He hopes he can help others in his situation gain the freedom of mobility they need to lead a normal life. Chris Sauerbaum has a physical disability resulting from chronic inflammatory polyneuropathy, a form of muscular dystrophy where the sufferer's immune system attacks their nerves. Sauerbaum lost both of his legs and is bound to a wheelchair. After 11 years of trying, he finally has a vehicle that he can drive. "You might as well be driving a Lamborghini," Sauerbaum told the York Dispatch as the driver side door extended to a lift to accommodate Sauerbaum's wheelchair. "Everyone comes up and talks to you. You come out looking like a Transformer." It wasn't easy getting transportation that fit his needs. First he bought a Chrysler PT Cruiser, which wasn't large enough to handle the equipment needed to convert the car for a legless driver. In 2013, Sauerbaum and his wife Heather Sloat appealed to local businesses and friends for donations. They raised $10,000 and were able to put a downpayment on a GMC Sierra. The truck then underwent $91,000 worth of upgrades. It was completely outfitted for Sauerbaum, with a large lift to bring his wheel chair up to the driver's seat and joysticks doing the work of peddles and the steering wheel. New York's Office of Vocational Rehabilitation paid for the conversion. "Think of it as a big remote controlled car. An 8,000 pound R/C car," Sauerbaum told the Dispatch. After a week and a half of learning the controls, Sauerbaum was able to drive with confidence again. He will no long need to rely on his wife to get him two and from work, an 80-mile trip each day. Sauerbaum and Sloat hope to start a nonprofit called Drive for Independence that will assist other wheelchair-bound people with the costs of getting a converted vehicle that suits their needs. "It's just one piece of the puzzle to get people to work," Sloat told the Dispatch. Related Video: Weird Car News GMC Driving Ownership Truck Videos disabled ms

United States drivers buying fewer Mexican-made cars

Crossovers and pickup trucks are not only growing in market share, they're also more profitable than cars. A crossover on the same platform as a sedan retails for thousands more, despite similar components. It's one of the reasons we've seen automakers rapidly shifting production of their sedans and hatchbacks to Mexico, where cheap labor preserves the thin profit margins on these inexpensive vehicles. But as the market continues to shift in the United States, Mexico is getting burned by its lack of product diversity. The country's auto exports, which are heavy on cars, suffered a 16-percent drop last month, Automotive News reports. In total, year-over-year exports fell from 233,515 to 197,020 last month, while year-to-date exports are down by 7.4 percent, from 922,029 to 854,118. The number one culprit? America – which usually accounts for 75 percent of Mexico's exports – and its appetite for crossovers and pickup trucks bolstered by cheap gas prices. While Mexico does build some light truck models – AN specifically calls out the Ram 2500, Honda HR-V, GMC Sierra, and Toyota Tacoma as export leaders – the vast majority of vehicles rolling out of its factories are sedans and hatchbacks. In fact, the three biggest drops in Mexican exports came from companies whose south of the border factories only build cars – Ford (Fusion/Lincoln MKZ and Fiesta), Mazda (Mazda3), and Volkswagen (Golf and Jetta). Mexican Automotive Industry Association President Eduardo Solis told AN the export shortfall will likely be sorted out sooner rather than later, thanks to a pair of new factories – a Kia car factory and an Audi SUV plant – that are coming online by year's end. The two facilities will add around 100,000 vehicles to the country's export totals, which Solis said should leave the industry on the verge of breaking another export record in 2016. But how sustainable will these record-breaking years be? Slapping an "Hecho en Mexico" sticker on a new German SUV won't be enough to change the fact that Mexico's product mix is tilted too heavily towards body styles that are not growing in volume. Mexico's record-breaking export years probably aren't at an end, but we'd argue they're certainly under threat. News Source: Automotive News - sub. req.Image Credit: Omar Torres / AFP / Getty Images Plants/Manufacturing Ford GMC Honda Mazda RAM Volkswagen Truck Crossover SUV Mexico