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U.S. auto sales fall in July, as Detroit dials back on inventory, rental sales

DETROIT — U.S. carmakers said on Tuesday they continued to slash low-margin sales to daily rental fleets in July as General Motors, Ford and Fiat Chrysler Automobiles struggled to curb a slide in retail sales. July is on track to be the fifth straight month in which the annual pace of car and light truck sales declined from the same month a year ago, in part because of fewer fleet sales, analysts and industry executives said. July 2016 sales hit a strong 17.9-million-vehicle pace. GM said the seasonally adjusted annual sales rate fell to an estimated 16.9 million vehicles in July. At midmorning on Tuesday, GM shares were down 3.4 percent at $34.77, Ford was down 2.8 percent at $10.91, and Fiat Chrysler shares were down 0.3 percent at $12.05 in New York. GM sales dropped 15 percent from a year ago to 226,107 vehicles, as the company cut rental fleet sales more than 80 percent. The automaker said inventories of unsold vehicles at month's end were 104 days, down from 105 days at the end of June. GM has promised investors to reduce inventories to 70 days by year-end. Ford said its July sales dipped 7.5 percent to 200,212 vehicles, as it cut fleet sales more than 26 percent. Inventories fell to 77 days from 79 the previous month. Fiat Chrysler said sales dropped 10 percent to 161,477, as it also cut back sales to daily rental fleets. Among the top Japanese companies, only Toyota reported a year-to-year gain, with sales up 4 percent to 222,057 — just 4,000 units behind GM. Honda sales were down 1 percent to 150,980 — its first-quarter sales continuing to decline in North America but seeing a big increase in China. And Nissan sales fell 3 percent to 128,295. GM, Ford and Fiat Chrysler have cautioned that second-half financial results likely will be lower than first-half results, in part reflecting production cuts in North America and pricing pressures. The automakers this year have been deliberately dialing back sales to rental-car companies, which often generate little to no profit, while struggling to keep retail sales from sagging further, according to industry analysts. Industry consultant LMC cut its full-year forecast for new vehicle sales to 17 million vehicles. Automakers sold a record 17.55 million vehicles in the United States in 2016.

Honda MC-? will use solar-powered chargers in 'micro' EV tests

Honda is envisioning what it calls a CO2-free society and, not surprisingly, it's a rather sunny one, in one Japanese city, at least. The Japanese automaker is kicking off a test program with the micro-electric-vehicle that will use power generated via photovoltaic energy collected and stored at EV charging stations. Yes, the big old sun will power those little-bitty MC-? cars. MC-? is shorthand for "Micro Computer Beta" and the car is certainly an appropriate vehicle for these tests. The car is 98 inches long (about eight inches shorter than a Smart ForTwo) and has a 43-mile-per-hour top speed as well as an electric motor that delivers a meager eight horsepower. The car is designed to meet Europe's quadricycle regulations and has a 50-mile single-charge range. No word on if or when it'll go into production, of course, but Honda and Toshiba are working with Japan's Miyakojima City on the project, with Toshiba responsible for building three solar-powered EV-charging stations. The Japanese automaker unveiled the latest incarnation of the 1+1 tandem-seating-arrangement MC-? last fall. You can see our "Quick Spin" impressions of the model here and read Honda's press release below. Honda Begins Experimental Test-driving of MC-? Micro-sized EV Using Renewable Energy TOKYO, Japan, January 28, 2014 - Jointly with Miyakojima City and Toshiba Corporation, Honda Motor Co., Ltd. began experimental test-driving of the MC-?, Honda's micro-sized EV, using photovoltaic (PV) energy as part of the Miyakojima City Small-sized Electromotive Mobility Project*1. Through this experimental program, Honda will operate an environmentally-responsible micro-sized EV using renewable energy, and work together with the local community to explore the possibility of a CO2-free society. In November 2013, Honda began separate field tests jointly conducted with Kumamoto Prefecture, Saitama City and Miyakojima City using the MC-?. For the field tests in Miyakojima City, as a part of the initiative as an environmentally-responsible model city, the feasibility of the introduction and utilization of small-sized electromotive mobility products and electricity supply facilities are being verified. For this particular driving experiment in the city using renewable energy, the MC-? will be charged from three new PV recharging stations newly built by Toshiba.

Honda recalls select 2013 Accords over fuel tank neck

Honda and the National Highway Traffic Safety Administration have announced a recall for 1,659 model-year 2013 Honda Accord vehicles. The affected Accords are Low-Emission Vehicle II rated cars manufactured between January 15 and April 5 of 2013.
The recall is pursuant to a fuel tank neck that might be out of specification, and the variance could result in the fuel pump not properly sealing with the fuel tank. As you might guess, a bad seal here could result in a gasoline leak, posing a fire risk. As of this writing, there have been no reports of fires because of this problem.
Honda will reach out to owners of affected 2013 Accords, directing dealers to replace the cars' fuel tank, nut and O-ring gasket. Expect the notifications when the recall begins in earnest on August 1. FInd the full NHTSA press release below.