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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.

Honda invests $215M in Ohio Earth Dreams production

Honda has announced a $215 million investment in a pair of its Ohio operations, taking its total tally for North American operations up to $2.7 billion in three years. The announcement was made at the 2013 Center For Automotive Research Management Briefing Seminars in Traverse City.
$180 million of the investment is earmarked for Honda's Anna, OH engine plant. The money will allow the facility to increase its aluminum die casting and increase production of Honda's Earth Dreams Technology engines. Think of Earth Dreams as sort of like Mazda's Skyactiv line, only ED is limited to a new line of engines, rather than a full suite of automotive components. Anna will also be getting a new technical center to train engineers, techs, and line workers on powertrain technology.
The remaining $35 million is slated for Honda's main Ohio operations in Marysville. A 160,000-square-foot facility will be constructed near Honda's current properties, which will house another technical training center to focus on automotive manufacturing. The new building will also house Honda's North American Services group, as well as a new heritage center.

SAE World Congress: Testing out the Honda UNI-CUB, Walking Assist Device

Based on the downstairs display at the 2015 SAE World Congress in Detroit this week, you would think that Honda is barely an automaker. Instead, it was a company that focuses on robots, bizarre unicycles, motorcycles, and jets. We were not adverse to the car-related tech on display upstairs, but we wanted a closer look at the UNI-CUB and the Walking Assist Device. The UNI-CUB is one of the strangest vehicles we've ever experienced. It feels telepathic, because when you're sitting on it and think you want to go forward, your body naturally leans and then the UNI-CUB starts to move. The UNI part of the name stands for unicycle, but that's kind of a misnomer, since this thing has more than one wheel. First off, there's a tiny wheel for balance at the rear, but the main wheel itself is made up of multiple smaller wheels, which Honda calls the Omni Traction Drive System. This is what lets the UNI-CUB move side to side instead of just frontwards and backwards. The Walking Assist Device is a small setup with motors, leg straps, and a battery pack. The idea is to have the machine help lift up your legs as you walk, with the target audience being people who have had an injury, like a stroke. The WAD sits outside your clothes and can help someone walk for about an hour from a 22.2V-1Ah lithium-ion battery. You can see more in the video above.