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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.

Rebooted Apple program gets permit to test autonomous vehicles in California

For a while, Apple has been pursuing autonomous vehicle technology, but has more or less tried to keep the specifics of those ambitions under wraps. We did learn last fall that the company was killing off plans to build its own car, and clues about its program to develop a self-driving system popped up since. Today, though, we have more concrete information, as the California DMV has issued Apple a permit to test self-driving cars in the state, as TechCrunch reports. In a document released by the DMV, the tech company joins a number of others in California with approval to test autonomous vehicles. Apple will test its systems on three cars, each a 2015 Lexus RX540h, with six approved drivers. Presumably, those cars will be on the road quite a bit, as gathering lots of data is crucial to developing a working system. Per California rules, the company will have to provide accident reports, as well as a log of every instance that a human driver has to take over driving duties from the autonomous system in what the DMV calls a "disengagement report." Those reports will be made public, so we'll be able to glean a little more information about Apple's progress once they're available. Related Video: News Source: TechCrunchImage Credit: GABRIELLE LURIE/AFP/Getty Images Green Lexus Technology Emerging Technologies Autonomous Vehicles California

Genesis wins J.D. Power Tech Experience Study for third straight time

The results are out for the J.D. Power 2023 U.S. Tech Experience Index (TXI) Study, which "focuses on the user experience with advanced vehicle technology as it first comes to market and is an early measure of problems encountered by vehicle owners." Its measurement metric is problems per 100 vehicles (PP100), same as with the J.D. Power Initial Quality Study (IQS). The takeaway this year isn't that owners aren't using advanced technologies, as was the case with the 2022 study, or that they're having more problems with them overall. It's that owners of battery-electric vehicles are having more problems with advanced tech than owners of ICE-powered vehicles. According to the study, 17 of 21 features that can be had on both propulsion types — such as remote parking assistance and gesture controls — get lower satisfaction ratings by owners of BEVs, in some cases nearly 20 PP100.  The survey organization says this tracks with what its found in the IQS, where total vehicle problems were "46% higher among BEVs (excluding Tesla) than ICE vehicles and satisfaction is lower among owners of BEVs across nine of 10 APEAL categories than among owners of ICE vehicles." Findings regarding biometric measurements are among those that go against the overall study findings. Whether a fingerprint reader or an eye tracker, car owners in general said "they do not consider them to be useful." In terms of ease-of-use and satisfaction, plug-and-charge capability on EVs gets good marks. This allows EV owners to plug into a public charger and have payment taken care of automatically; the vehicle communicates with any charging station compatible with an automaker's plug-and-play system, so the vehicle can automatically submit a bill for the charging session to a central owner account with no further action needed at the station. Survey respondents noted a mere 6 PP100 and an 88.9% satisfaction.    Among manufacturers, repeat winners took the top prizes. Genesis earned the highest rank for innovation overall and among premium brands for the third straight year. Hyundai not only won the tech innovation banner for mass market brands for the fourth straight year, ahead of Kia, GMC, Ram and Subaru, Hyundai finished in second in the overall standings. On that overall chart, the top five are Genesis, Hyundai, Cadillac, Lexus and BMW. On the premium chart, Genesis is followed by Cadillac, Lexus, BMW and Mercedes-Benz in the top five. It wasn't close from the first to the rest, though.