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The next steps automakers could take after sales drop again in April

DETROIT (Reuters) - Major automakers on Tuesday posted declines in U.S. new vehicle sales for April in a sign the long boom cycle that lifted the American auto industry to record sales last year is losing steam, sending carmaker stocks down. The drop in sales versus April 2016 came on the heels of a disappointing March, which automakers had shrugged off as just a bad month. But two straight weak months has heightened Wall Street worries the cyclical industry is on a downward swing after a nearly uninterrupted boom since the Great Recession's end in 2010. Auto sales were a drag on U.S. first-quarter gross domestic product, with the economy growing at an annual rate of just 0.7 percent according to an advance estimate published by the Commerce Department last Friday. Excluding the auto sector the GDP growth rate would have been 1.2 percent. Industry consultant Autodata put the industry's seasonally adjusted annualized rate of sales at 16.88 million units for April, below the average of 17.2 million units predicted by analysts polled by Reuters. General Motors Co shares fell 2.9 percent while Ford Motor Co slid 4.3 percent and Fiat Chrysler Automobiles NV's U.S.-traded shares tumbled 4.2 percent. The U.S. auto industry faces multiple challenges. Sales are slipping and vehicle inventory levels have risen even as carmakers have hiked discounts to lure customers. A flood of used vehicles from the boom cycle are increasingly competing with new cars. The question for automakers: How much and for how long to curtail production this summer, which will result in worker layoffs? To bring down stocks of unsold vehicles, the Detroit automakers need to cut production, and offer more discounts without creating "an incentives war," said Mark Wakefield, head of the North American automotive practice for AlixPartners in Southfield, Michigan. "We see multiple weeks (of production) being taken out on the car side," he said, "and some softness on the truck side." Rival automakers will be watching each other to see if one is cutting prices to gain market share from another, he said, instead of just clearing inventory. INVESTORS DIGEST BAD NEWS Just last week GM reported a record first-quarter profit, but that had almost zero impact on the automaker's stock. The iconic carmaker, whose own interest was once conflated with that of America's, has slipped behind luxury carmaker Tesla Inc in terms of valuation.

2013 Lexus ES earns five stars from NHTSA

The 2013 Lexus ES has earned a five-star crash rating from the National Highway Traffic Safety Administration. The 2013 ES 350 and ES 300h hybrid earned the highest ratings in each of the government's crash evaluations, including overall driver safety, frontal crashes and overall side impacts, save one. The sedan only achieved a four-star rating in the NHTSA rollover protection test, but that fault wasn't enough to keep the vehicle from earning a five-star designation overall.
The announcement doesn't mention the recent Consumer Reports claim that the ES comes with a faulty emergency trunk release that can be easily broken in a panic situation.
As you may recall, the 2013 ES 350 carries an MSRP of $36,100, plus an $895 destination fee and offers buyers a 268-horsepower 3.5-liter V6 good for 248 pound-feet of torque, as well. The ES 300h, meanwhile, stickers at $38,850 plus the same destination charge.

Lexus previews LF-LC GT Vision Gran Turismo

Hot on the heels of the Alpine Vision Gran Turismo, the next in line to showcase its concept for GT6 is Lexus. Dubbed the LF-LC GT Vision Gran Turismo, the design is apparently based on that of the Lexus LF-LC concept that debuted at the 2012 Detroit Auto Show in red, reappeared in blue at the Australian Motor Show and is tipped to reach production as the LC 500. The virtual reality concept appears to encompass many of the same design cues, but in racing guise – not unlike the treatment Lexus applied to the RC F GT3 concept last year and with a similar white paintjob. More than that we couldn't tell you, but Polyphony Digital – the game studio responsible for the Gran Turismo franchise – says the official unveiling will follow soon.