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Major automakers post mixed US June sales figures

General Motors, Ford and Fiat Chrysler Automobiles NV posted declines in US new vehicle sales for June on Monday, while major Japanese automakers reported stronger figures. Once again, demand for pickup trucks and crossovers offset a decline in sedan sales. Automakers' shares rose as overall industry sales still came in above Wall Street expectations. The US auto industry is bracing for a downturn after hitting a record 17.55 million new vehicles sold in 2016. Analysts had predicted that overall, US vehicle sales would fall in June for the fourth consecutive month. As the market has shown signs of cooling, automakers have hiked discounts and loosened lending terms. Car shopping website Edmunds said on Monday the average length of a car loan reached an all-time high of 69.3 months in June. "It's financially risky, leaving borrowers exposed to being upside down on their vehicles for a large chunk of their loans," said Jessica Caldwell, Edmunds' executive director of industry analysis. GM said its sales fell about 5 percent versus June 2016, but that the industry would see stronger sales in the second half of 2017 versus the first half. "Under the current economic conditions, we anticipate US retail vehicle sales will remain strong for the foreseeable future." GM shares were up 2.4 percent in morning trading, while Ford rose 3.3 percent and FCA shares jumped 6 percent. "US total sales are moderating due to an industry-wide pullback in daily rental sales, but key US economic fundamentals clearly remain positive," said GM chief economist Mustafa Mohatarem. "Under the current economic conditions, we anticipate US retail vehicle sales will remain strong for the foreseeable future." Ford said its sales for June were hit by lower fleet sales to rental agencies, businesses, and government entities, which fell 13.9 percent, while sales to consumers were flat. But it sold a record 406,464 SUVs in the first half of the year, with Explorer sales increasing 23 percent in June. And sales of the F-150 had their strongest June since 2001. On a media call, Ford executives said an initial read of automakers' sales figures indicated a seasonally adjusted annualized rate of around 17 million new vehicles for the month, which would be better than 16.6 million units analysts had predicted. FCA said June sales decreased 7 percent versus the same month a year earlier.

Infiniti Formula One-inspired Q60 Project Black S has been canned

Infiniti gave enthusiasts a preview of what a high-performance hybrid coupe equipped with Formula One-derived technology could look like when it released the Q60-based Black S concept in 2017. While executives hinted the 563-horsepower model could reach production sooner rather than later, the company confirmed it's been axed. Industry trade journal Automotive News learned the concept was consigned to the automotive attic from an Infiniti spokesman. He pointed out the design study "continues to inspire us," but he didn't explain why the Black S won't reach production. We're not surprised by the decision, though. It was a complex, eye-wateringly expensive version of a slow-selling model unveiled in 2015. Making the numbers add up was likely easier said than done.  Interestingly, many Infiniti dealers didn't want the Black S. "In today's market, a premium Japanese performance coupe has to be very low volume. Anything that Infiniti produces for its dealers, we want it to be a volume product. We're not really in the racing business. I would much rather see something like the QX60. That's a volume vehicle, that's where this company needs to go," opined Ed Lennon, the chairman of the Infiniti National Dealer Advisory Board, in an interview with Automotive News. Unveiled at the 2017 edition of the Geneva auto show, and presented again the following year in Paris, the Black S was powered by a gasoline-electric hybrid drivetrain built around the twin-turbocharged, 3.0-liter V6 that powers the Q60 Red Sport 400. It worked with three motor-generator units similar to the ones found in the Kinetic Energy Recovery System (KERS) fitted to Formula One cars. One spun the rear wheels, and the others were connected to the turbochargers to eliminate lag and deliver instant boost. Infiniti quoted a sub-four-second sprint to 60 mph. Hybrid technology adds weight, and Formula One-like components are no exception. Infiniti noted the drivetrain weighed 441 pounds more than the Red Sport 400's V6. Had it been built, the Black S would have relied extensively on carbon fiber to keep weight in check, and it would have offered a 50/50 weight distribution. Much has changed since 2017, however. Roland Krueger, the former Infiniti CEO who championed the project, left the company in January 2019 to lead Dyson's ill-fated automotive unit. Infiniti announced plans to exit the European market later that year, and it ended its participation in Formula One in 2020.

Nissan CEO Hiroto Saikawa resigns, successor to be named

YOKOHAMA, Japan — Nissan Chief Executive Hiroto Saikawa tendered his resignation Monday after acknowledging that he had received dubious income and vowed to pass the leadership of the Japanese automaker to a new generation. Board member Yasushi Kimura told reporters at an evening news conference at company headquarters in Yokohama that the board has approved Saikawa's resignation, effective Sept. 16, and a successor will be appointed next month. A search is underway, he added. Calls for Saikawa's resignation, which arose after the arrest last year of his predecessor, Carlos Ghosn, on various financial misconduct allegations, have grown louder after Saikawa acknowledged last week that he had received dubious payments. The income was linked to the stock price of Nissan Motor Co., and he has said his pay got inflated by illicitly adjusting the date for cashing in. The automaker's board met to look into the allegations against Saikawa, as well as other issues related to Ghosn's allegations and corporate ethics at the company. Kimura said the income Saikawa had received was confirmed as "not illegal." Ghosn, who is out on bail and awaiting trial, says he's innocent. Kimura and three other board members, who all have backgrounds outside the company, said their investigation of the scandal over Ghosn's arrest found that alleged misconduct by Ghosn and Greg Kelly, a former board member who was also arrested, had caused 35 billion yen ($350 million) in damage to the company. Nissan will seek a repayment of the damages, Kimura said. The board said about 10 candidates are being considered as a replacement for Saikawa. They did not identify them, but said outsiders and non-Japanese are on the list. Until a successor is decided, Chief Operating Officer Yasuhiro Yamauchi will serve as interim chief, the board said. Saikawa has not been charged. "I have been trying to do what needs to be done so that I can pass the baton over as soon as possible," he told reporters earlier in the day, referring to his willingness to leave his job. Saikawa did not appear at the news conference initially, but the four board members who led the event said he would later. Saikawa has said he didn't know about the improprieties, promised to return the money and blamed the system he said Ghosn had created at Nissan for the dubious payments. Japanese media reports said Saikawa had received tens of millions of yen (hundreds of thousands of dollars) in extra compensation.