2004 Lexus Sc 430 on 2040-cars

Auto blog

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.

This Lexus LC Super Bowl ad is like a Sia music video with sweet wall dancing

What you see above is the extended, 60-second version of Lexus's "Man & Machine" Super Bowl commercial. The car/machine half is obviously the new 2017 Lexus LC 500 coupe, and the man in question is Lil Buck, a so-called movement artist (we think that's like a dancer). Both are moving to Sia singing "Move Your Body" from her latest album, "This Is Acting." So yeah, it's basically a music video with a car featuring prominently in it, which is fine by us. (In fact, it was directed by Jonas Akerlund, who specializes in the genre.) We see the machine and the man on split screen, and then the voiceover attempts to tie it all together: "Machines don't have emotions, but the rare few can inspire them." And then Lil Buck seems to defy gravity by slithering into the car while the door closes. The coolest part is how he dances on the walls around the Lexus. Revolving sets with fixed cameras are neat, especially with a car stuck in the middle. The spot closes with Lexus's new tagline, Experience Amazing. Like most corporate mottos, it says almost nothing about the brand. But hey, the commercial is fun to watch, and we happen to like the new LC, so they're doing something right. A 30-second version of the spot will air during the big game. Related Video:

Bugatti Veyron, Lexus LFA, McLaren MP4-12C and Lambo Aventador in 1/4-mile shootout... who wins?

Automobile Magazine scribe Jason Cammisa was sent into the desert to referee four carbon-fiber-bodied wild animals fighting it out over the quarter mile: the V8 McLaren MP4-12C, the V10 Lexus LFA, the V12 Lamborghini Aventador and the W16 Bugatti Veyron Grand Sport. It's a tough job, innit?
The Head 2 Head race was run elimination style, with the winner of each two-up challenge facing the next devil up the totem pole. Although you might not have any doubts about the eventual victor, how each of these supercars fared is good watching. See all the screaming for yourself in the video below.