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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.

Jeep going bigger with new Grand Wagoneer, smaller with sub-Renegade?

The headlines are still rolling in for the new Renegade that Jeep unveiled at the Geneva Motor Show last week, but already reports are surfacing, citing sources within the company, about what Chrysler's iconic off-road brand will do next.
Speaking with Auto Express (whose reports we tend to take with a grain of salt or two), Jeep chief Mike Manley suggested that two courses of action are currently under consideration at Auburn Hills to develop two very different new models - one smaller and one larger than anything Jeep currently makes.
One plan would be to make an SUV or crossover even smaller than the new Renegade, although it isn't immediately clear what platform it would take. The Renegade (pictured above in Trailhawk spec) will be built in Italy alongside Fiat's upcoming 500X, but uses a heavily modified platform. We figure the smaller model, if approved, could base itself on the new Fiat Panda Cross.

Jeep recalling 75,000 Cherokees over air-conditioning lines

Fiat Chrysler Automobiles has issued a recall for an estimated 75,364 examples of the Jeep Cherokee in the United States. The problem stems from an air-conditioning line, which may have been installed to close to the exhaust manifold. "Under certain operating conditions," says FCA in the statement below, "this may pose a fire risk." Thus far, however, the company says it is "unaware of any related injuries or accidents." The owners of those 75k Jeeps (as well as another 18,000+ in other markets) can expect to hear from their local dealers to have the problem rectified. However the manufacturer also advises owners to watch out for indicators like air-conditioning loss or a dashboard warning light and contact their dealers if necessary. Related Video: Statement: Air-conditioning System October 27, 2015 , Auburn Hills, Mich. - FCA US LLC is voluntarily recalling an estimated 75,364 U.S.-market SUVs to inspect and replace, as required, their air-conditioning lines, as required. FCA US launched an investigation after the National Highway Traffic Safety Administration received two customer complaints involving smoke and fire. The Company discovered air-conditioning lines on some vehicles may have been installed in close proximity to their engines' exhaust manifolds; under certain operating conditions, this may pose a fire risk. FCA US is unaware of any related injuries or accidents. The recall is limited to certain 2015 Jeep Cherokees. Additional vehicles are affected in other markets. They include an estimated 7,571 in Canada; 4,018 in Mexico; and 6,942 outside the outside the NAFTA region. Affected customers will be advised when they may schedule service, which FCA US will provide free of charge. . Customers who observe air-conditioning loss or any other concern, such as a dashboard warning light, should contact their dealers. Customers with additional questions may call the FCA US Customer Information Center at 1-800-853-1403.