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Auto sales in March and first quarter down nearly across the board

Nearly every major automaker reported weak U.S. sales for March and the first quarter of 2019, citing a rough start to the year, but said a robust economy and strong labor market should encourage consumers to buy more vehicles as 2019 rolls on. GM, which no longer releases monthly sales figures, saw first-quarter sales fall 7 percent, with declines across all brands. Sales of Silverado pickup trucks fell nearly 16 percent and the high-margin Chevy Suburban large SUV dropped 25 percent. Ford also no longer releases monthly sales numbers, but is due to release its first-quarter sales figures on Thursday. According to industry data, Ford's sales fell 2 percent in the quarter and 5 percent in March. Ford representatives did not immediately respond to requests for comment. FCA reported a 7 percent fall in U.S. sales in March and a 3 percent drop for the first quarter. All of FCA's brands dropped in March, except for Ram, which saw a 15 percent increase in pickup truck sales. "The industry had a tough first quarter, but with spring finally starting to show its face and continued strong economic indicators ... we are confident that new vehicle sales demand will strengthen going forward," FCA's U.S. head of sales, Reid Bigland, said in a statement. Toyota reported a 3.5 percent fall in U.S. sales in March and 5 percent for the first quarter, hurt by declining demand for its Corolla sedans and Camry vehicles. "While some of our competitors are abandoning sedans, we remain optimistic about the future of the segment," Toyota said in a statement. Nissan posted a 5.3 percent drop in sales in March, and its first-quarter sales were down 11.6 percent. Honda and Hyundai bucked the trend. Honda's U.S. sales rose 4.3 percent in March and 2 percent in the quarter, while Hyundai's were up 1.7 percent and 2.1 percent, respectively. Passenger-car sales suffered throughout the January-March quarter compared with the same period in 2018 as Americans continued to abandon them in favor of larger, more comfortable pickup trucks and SUVs, which are far more profitable for automakers. The battle for market share in the particularly lucrative large-pickup truck market intensified in the quarter, as Fiat Chrysler Automobiles' Ram brand outsold the U.S.' No. 1 automaker General Motors' Chevrolet-brand trucks. The two automakers have both launched redesigned pickup trucks.

GMC considers adding more vehicles to broaden product line

GMC is considering expanding its product portfolio in the next 10 years to allow it to reach more potential buyers and grow sales, a top executive said Monday. The small and midsize sport-utility-vehicle segments are two possibilities, said Duncan Aldred, GMC sales and marketing vice president. He also said GMC won't make a car, preferring to reinforce its reputation as a maker of trucks and SUVs. "There's plenty of opportunities even if we define ourselves as a we do as a truck and crossover brand," he said. He wouldn't comment on the possibility of adding a Jeep Wrangler-fighter, though rumors have swirled for months that GMC is considering a product to compete with the iconic off-roader. "I can't confirm that ... everything's on the table," he said. He also said that it's possible GMC could get a unique set of underpinnings – all of its vehicles share platforms that are also used by Chevrolet – but it's not needed to differentiate his brand. "I'm very happy sharing underpinnings and everything else," he said. "All of the good-performing automakers do that." Speaking to journalists at a roundtable at General Motors headquarters in Detroit, Aldred said GMC received an investment from GM that is double what the brand has historically spent to fund its growth plans. Advertising spending alone will increase 50 percent this year compared with 2014. The brand rolled out a new ad campaign on Monday, called "Precision," that will underscore attention-to-detail and the premium features of GMC vehicles. Two of the commercials have a sporting theme, and the third focuses on modern menswear. GMC called it a "contemporary interpretation" of the brand's traditional positioning, and it will also continue to use its long-running "Professional Grade" tagline. The premium positioning of the ads come as buyers are increasingly outfitting their trucks as near-luxury vehicles. The percentage of buyers opting for the top-end Denali trim has increased from 17 percent in the middle of 2014 to 21 percent now. The goal is to get Denali to make up 25 percent of GMC sales by the end of 2017, Aldred said. Spurred by the higher Denali take-rate, the brand's transaction prices leapt by $3,000 last year. "It's [Denali] really kind of this jewel in the crown," Aldred said. GMC sales increased 11.3 percent in 2014 to 501,853 units, making it GM's-second-best-selling brand behind Chevrolet.

New Takata problem results in recall of 414 GM vehicles

An airbag-inflator rupture discovered by Takata during testing has resulted in a new recall affecting 414 vehicles from General Motors, including 395 of them in the US. This latest campaign covers 2015 model-year examples of the Buick LaCrosse, Cadillac XTS, Chevrolet Camaro, Equinox, Malibu, and GMC Terrain. There are no reported breaks in any of these vehicles on the road, and the company estimates only one percent of them actually have the faulty parts. According to documents submitted to the National Highway Traffic Safety Administration (as a PDF), one side-airbag inflator failed a cold test at -40 Fahrenheit "releasing high pressure gas and propelling the separated components apart." The supplier told GM about the failure the next day. In these vehicles, the safety device might not only burst but the bag could inflate incorrectly, as well. GM and Takata say that a cause is not yet known, but they are "conducting an investigation." GM will begin notifying affected owners via overnight mail on Oct. 19. Dealers will replace the side airbag modules on all of the affected vehicles with new components outside of the suspect lot. All of the removed parts will also be collected for further study. Takata's faulty front airbag inflators have resulted in a serious scandal for the supplier. Initial figures indicated 34 million US vehicles are need of repair, though more recent figures have knocked that down to 23.4 million bad parts in 19.2 million automobiles. GM was already among the dozen automakers with models to fix, and some of its pickups were affected, along with the Saab 9-2X and Pontiac Vibe. GM Statement: General Motors is recalling 395 cars and crossovers in the U.S. because one of the front seat side air bags inflators may be defective. In the event of a deployment, the air bag's inflator may rupture and the air bag may not properly inflate. The rupture could cause metal fragments to strike the vehicle occupants, potentially resulting in serious injury or death. GM is unaware of any incidents involving vehicles with these components, which were part of a lot in which one inflator failed acceptance testing at the supplier. Dealers will replace the side air bag module or modules in affected vehicles. Including Canada, Mexico and exports, the total population of the recall is 414, GM estimates 1 percent of the recalled vehicles may have the defect.