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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.

Honda Vezel leaked in Mugen trim

Just last month at the Tokyo Motor Show, Honda revealed its new Vezel crossover, a production version of the Urban SUV concept that debuted at the Detroit Auto Show. According to new reports, the model already has a three-month waiting list in Japan alone. But that doesn't mean Honda's tuning division, Mugen, is waiting around to spruce it up.
Pictured here is the Mugen-tuned version of the Vezel leaked from a sales brochure in Japan. While there's not much information to go on, Mugen's take on the Vezel appears to be wearing a custom aero kit, with more pronounced lower bumpers and side sills, a more Acura-like grille treatment and different wheels.
Whether we'll ever get a Mugen package like this when the Fit-based CUV arrives in North America remains to be seen, but we've historically gotten very few of these tuned-up Hondas. In fact, we're still not even sure what the tiny crossover will be called when it arrives here, but something tells us it won't arrive carrying the Vezel moniker.

Honda sending two NSX racers and new EV concept to Pikes Peak

Honda is always good for a few interesting Pikes Peak entries. In 2015, Acura supplied a 2017 NSX prototype for pace-car duty. This time around, two NSXes will compete alongside a reconfigured version of the company's four-motor electric racecar. Those aren't the 2016 entries above. The one on the right is last year's pace car and the one on the left is a first-gen NSX that did the hillclimb the past few years. The 2016 cars haven't been unveiled yet, but we know that one will be in the Time Attack 2 Production class, which is mostly stock with the addition of items like a roll cage, and the other will be in Time Attack 1. TA 1 allows modifications to the powertrain, additional aero aids, suspension changes, and other tweaks, so expect to see a lot more power and a big wing on the back. The cars will be driven by James and Nick Robinson, brothers who work for Honda R&D in Ohio. Honda will use a version of the four-motor electric powertrain from its 2015 CR-Z Exhibition class entry in a new EV. (We got to drive a non-race tune of this setup in Japan last year.) The 2016 version, which will wear a different body, moves to the Electric - Electric Modified class of last year's frontrunners. We're told this car is aiming for an overall win at the 2016 race; the CR-Z took 11th place overall in 2015. The EV will again be driven by Tetsuya Yamano, a Japanese Super GT driver. Oh, and there will of course be a factory entry or two from Honda's Powersports division. Honda engineer Keith Steidl will ride a 2015 TRX1000 ATV in the Pikes Peak Challenge - Exhibition Powersport class. In the past, Honda has fielded plenty of other neat stuff in the Race to the Clouds. In 2012, it ran an NSX fitted with a twin-turbo V6 from an LMP2 car, and the 2013 race saw the very practical 532-horsepower turbocharged Odyssey minivan join the Exhibition class. The 2016 race marks the Pikes Peak hillclimb's 100th anniversary (but not the 101st running since competition took some breaks back in wartime). We're looking forward to June already. Related Video: Image Credit: Honda Green Motorsports Acura Honda Electric Hybrid Racing Vehicles pikes peak exclusive