2007 Lexus Ls 460 on 2040-cars

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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.

Lexus: Make Some Noise

The 2015 NX is a seriously important vehicle for Lexus, as it not only moves the brand into a new segment, but pushes it towards a younger demographic. The Japanese brand's 2015 Super Bowl ad reflected these facts, with an expressive, stylish spot that focused on the aggressive lines of its new crossover. It's not a funny spot (which is kind of the modus operandi for Super Bowl ads), but it gets the turbocharged CUV out in front of the masses. Take a look at our full drive on the all-new NX200t.

Lexus to display turbocharged LF-NX Concept at Tokyo Motor Show

Concept cars typically have a short lifespan. They debut at a major international auto show, then make the rounds of the lesser local shows, and that's pretty much it. They might be loaned out for test drives or put on display in a museum, but by and large they've had their fifteen minutes of fame by that point. That said, Japan's automakers have found a way to keep these show cars going and keep them in the news. They're modifying them and giving them a fresh lease on life.
That's what Subaru is doing with the Viziv concept for the upcoming Tokyo Motor Show, and what Lexus is doing as well with the LF-NX concept. Having already unveiled the crossover concept at the Frankfurt Motor Show, Lexus is fitting the LF-NX with a new 2.0-liter turbo engine. (But then, as far as we could tell, Lexus never revealed engine specs for the concept in the first place.)
To go with the turbo engine, Lexus has also fitted the concept with a new front splitter, but otherwise it's the same - and even appears to be wearing the same liquid-metal paint, unlike the LF-LC concept that got repainted from red to blue when its limelight was starting to fade.